'Exscientia is the Sniper of the AI Drug Discovery Industry'

 News of a $50 million investment by artificial intelligence (AI) leader Nvidia Co. (Nasdaq: NVDA) into AI-powered drug discovery company  Recursion Pharmaceuticals Inc. (NASDAQ: RXRX) more than doubled share prices. It also shined the spotlight on AI-powered drug discovery and the potential for quicker, better and more personalized drug therapies being developed using AI.

One of the benefactors of this spotlight is a UK-based clinical-stage pharma tech company, Exscientia plc (NASDAQ: EXAI). The company currently has five projects in the pipeline and competes with AI-drug discovery leader Schrodinger Inc. (NASDAQ: SDGR). AI drug discovery has the potential to cut preclinical research costs between 20% to 40% resulting in around a 15% increase in approved biotech therapies.

AI-Drug Pioneer

Exscientia takes credit for having the first AI-designed drugs to enter human clinical trials. It also credits itself as the first AI system to demonstrate improved clinical outcomes and repeatable 10X productivity in drug candidate creation. The company partners were Bristol Myers-Squibb Co. (NYSE: BMY), which received funding from the Bill and Melinda Gates Foundation, Softbank Group Co. (OTCMKTS: SFTBF) and Sanofi (NASDAQ: SNY) for its projects.

Projects Pipeline

Exscientia has five projects in its pipeline. Its small molecules are designed to target and block the activities of specific receptors that are responsible for pain, inflammation and cancer.

Its EXS21546 targets the A2A adenosine receptor, which is involved in many cellular processes, including pain, inflammation and cancer. Its small molecule drug is a selective A2A adenosine receptor antagonist, which blocks the receptor activities, thereby neutralizing its role in inflammation, pain and tumor growth. It's currently in Phase 1 clinical trials with patients with rheumatoid arthritis.

Bristol Myer-Squib Collaboration

EXS4318 was developed in collaboration with Bristol Myers-Squibb to target PKC-theta, a protein kinase key driver of many autoimmune, inflammatory and immunological diseases. EXS74539 targets LSD1, reducing amyloid plaque formation and improving cognitive functions in animal models of Alzheimer's. EXS73565 targets and blocks MALT1 protease, a protein involved in cancer development. It plans to use in patients with solid tumors in upcoming clinical trials.

ELUCIDATE (GTAEXS617) Enrolls First Human Patient

On July 10, 2023, Exscientia announced the first human to be enrolled in its phase 1 clinical trial for ELUCIDATE, GTAEXS617. It's designed to block CDK7 for the treatment of advanced solid tumors. Patients with advanced solid tumors, including colorectal, pancreatic, head and neck, breast and ovarian and non-small cell lung cancer, will be used in the study in collaboration with GT Apeiron, a Chinese biotech.

Exscientia Chief Quantitative Medicine Officer Dr. Michael Krams commented, '617 was created to solve critical design challenges not met by traditional drug discovery methods, focusing on on-target potency, selectivity and safety.

Combined with our unique ability to gather data from primary patient samples to predict response, we believe our '617 program exemplifies the power of the various ways in which we create value through our precision medicine platform. We look forward to enrolling additional patients into the ELUCIDATE trial and anticipate that '617 if approved, could meaningfully improve treatment outcomes for patients."

Sanofi Deal

In 2022, Exscientia signed a lucrative deal with Sanofi to design up to 15 small molecule targets across oncology and immunology. The company can earn up to $343 million per target in potential payments of $193 million for research and development and up to $150 million for commercial milestones.

Sanofi gave a $100 upfront investment with the potential for $5.2 billion in total payments. The company can co-invest in clinical studies to receive royalties at rates up to 21%.

Exscientia analyst ratings and stock price targets are at MarketBeat.

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 Weekly Descending Triangle Breakout

The weekly candlestick chart for EXAI illustrates a weekly descending triangle breakout pattern identical to the breakout pattern for RXRX. The weekly triangle started forming after peaking at $16.45 in June 2022. EXAI shares collapsed to a low of $4.20 by December 2022.

Each bounce attempt peaked at lower highs forming the descending trendline heading towards the apex with the flat-bottom lower horizontal trendline at $4.75. EXAI formed a weekly market structure low breakout through the $6.16 trigger in May 2023 as shares were capped again at the descending trendline.

It wasn’t until the NVDA investment in RXRX news turned the weekly relative strength index (RSI) momentum oscillator back towards the 60-band in July 2023 that the breakout finally occurred through the $7.50 descending trendline. Pullback supports are at $7.50, $6.56, $6.16 weekly MSL trigger and $5.49.

https://www.nasdaq.com/articles/exscientia-is-the-sniper-of-the-ai-drug-discovery-industry

Quest Diagnostics launches Alzheimer's blood test for consumers

 Quest Diagnostics on Monday launched the first direct-to-consumer blood test to detect abnormal levels of beta amyloid, a key Alzheimer's disease protein that can appear years before dementia symptoms arise.

The $399 test, called AD-Detect, uses the same technology as a blood test the company began selling for use by doctors in early 2022.

"One of the advantages of having an amyloid test is that it lets you know, potentially years in advance of even being symptomatic, that you are at risk for Alzheimer's," said Dr. Michael Racke, Quest's medical director of neurology.

The announcement follows U.S. regulatory approval earlier this month of Leqembi, a drug from Eisai and partner Biogen that removes amyloid from the brain and has been shown to slow the advance of Alzheimer's in early-stage patients.

A similar treatment from Eli Lilly called donanemab is under review by the U.S. Food and Drug Administration.

Prior Alzheimer's treatments have treated symptoms but did not address the underlying disease.

Quest's consumer test is aimed at adults aged 18 and older who may have mild memory loss or a family history of Alzheimer's and want to understand their own risk for the disease, Racke said.

Users must first pay for the test on Quest's website. A telemedicine doctor will review the purchase to ensure it is medically necessary and place an order on their behalf. Patients can review their results online and have the option to speak to a physician at no extra cost.

If the test is positive, individuals automatically will be contacted by a doctor from an independent physician network to discuss the next steps and potentially can share the results with other physicians, the company said.

Dr. Sarah Kremen, a neurologist at Cedars-Sinai in Los Angeles, was concerned that people who test positive but have no symptoms will come in seeking further testing, possibly in hopes of accessing new treatments. But they will not qualify for more testing if they are not symptomatic.

Racke said such individuals may still benefit from lifestyle interventions, such as dieting and exercise, to reduce their risk or delay the onset of symptoms. They may also qualify for Alzheimer's trials studying treatments in at-risk individuals who are still cognitively normal.

Quest's lab-developed test, created and performed in a single laboratory, has not undergone any FDA review. The agency generally does not review such tests as long as they are prescribed by a healthcare provider.

https://www.marketscreener.com/news/latest/Quest-Diagnostics-launches-Alzheimer-s-blood-test-for-consumers--44471707/

US announces 8-year-trial Medicare payment program for caretakers of dementia patients

 The U.S. government said on Monday it would trial a new payment program for people who provide dementia care coordination services for patients covered by the Medicare health plan.

The program includes services such as personalized assessments, care plans for patients as well as 24/7 access to a support line. Medicare said the program aims to delay long-term nursing home care.

The Medicare agency’s pilot program will test a per-patient per-month amount payment model for people who provide support services to patients with dementia.

The model includes a care coordinator to help increase access to clinical care as well as non-clinical services such as meals and transportation through community-based organizations.

The program is for people suffering from dementia due to Alzheimer’s disease or other causes including vascular dementia, dementia with Lewy bodies or abnormal deposits of protein inside nerve cells, among others.

The federal agency said it will open applications for organizations interested in participating in the program in autumn of this year. The trial is expected to run for eight years beginning July 2024.

About 6.5 million Americans currently live with Alzheimer’s disease or another form of dementia, a number that is projected to grow by nearly 14 million by 2060, according to government data.

The new plan comes weeks after the U.S. Food and Drug Administration approved Biogen and Eisai’s Alzheimer’s treatment Leqembi and Medicare said it would begin paying for it widely.

https://nypost.com/2023/07/31/us-announces-trial-medicare-payment-program-for-care-providers-of-dementia-patients/

Record NY Medicaid budget to shatter $100B, migrant crisis set to only trigger another spike

 The annual cost of New York’s public health insurance for the needy is set to shatter $100 billion for the first time — and the unrelenting migrant crisis could soon trigger even more of a spike, documents show. 

The state’s Medicaid program currently enrolls 7.8 million residents, with the staggering price tag for 2023-24 set at $108 billion, according to New York budget estimates.

That’s nearly $10 billion more than last fiscal year’s $99 million budget.

And beginning in January, the program will start providing medical coverage to an estimated 25,000 undocumented immigrants age 65 and over who are ineligible for Medicare, the federal health insurance program for senior citizens — at an estimated cost of $171.million. 

“Public health insurance coverage for asylum seekers and other migrants may drive further costs to the State,” Gov. Kathy Hochul’s budget office acknowledged in her executive spending plan earlier this year. 

The massive bill for the state’s Medicaid program is split between the federal, state and local governments.

According to New York budget estimates, the state’s medicare budget for 2023-24 is set to reach $108 billion.

Getty Images

The state picks up a third of the cost to finance the program, or $35.56 billion this fiscal year, the feds provide $64.6 billion, or 59%, and New York City and other counties chip in $8.5 billion, or 8%, for the $108 billion combined total.

The federal government has strict rules that bar newly arrived migrants from qualifying for Medicaid, with the exception of emergency care.

“The state’s share [of Medicaid spending] is on track to be 53 percent higher in 2024 than it was in 2019, which compares to 10 percent growth in the five years before 2019,” the Empire Center for Public Policy’s Bill Hammond said in a recent analysis.

The state Medicaid bill also is more than double the $17.7 billion borne in fiscal year 2011. 

Migrants signing up for health insurance after arriving in New York City on May 17, 2023.

Steve White for New York Post

Hammond said the fiscal year 2023-2024 state budget approved in April appears to increase the state share of Medicaid spending by $4.2 billion or 13 percent — an extension of a trend of explosive growth in the safety-net medical program during the COVID-19 pandemic.

The bulk of the added spending will go toward higher fees for various groups of providers that treat Medicaid recipients.

Hospitals receive bumps of 7.5 percent for inpatient care and 6.5 percent for outpatient care. Nursing-home providers also received a 6.5 percent increase.

A crowd of migrants sitting outside of the shelter at the Roosevelt Hotel in Manhattan on July 31, 2023.

Photo by KENA BETANCUR/AFP via Getty Images

Medicare will begin providing coverage to an estimated 25,000 undocumented immigrants age 65 and over beginning in January.

Photo by Spencer Platt/Getty Images

The budget also provides an additional $72 million to the State University of New York’s three hospitals  — Upstate Medical Center, SUNY Downstate and Stony Brook University — to cover “uncompensated” patient care, too.

“This trend has pumped billions more into what was already a costly health-care system by national and international standards,” Hammond said. “New York spends more per capita on Medicaid – and on health-care generally – than any other state.”

Federal policy encouraged New York and other states to keep residents on the Medicaid rolls during the COVID-19 outbreak as unemployment spiked.

But state officials are required to redetermine eligibility for all Medicaid recipients post-pandemic after the feds ended the COVID-19 emergency declaration, which is expected to reduce the number of insured in the program to 6.9 million from 7.8 million, a drop of 900,000.

Still, “the uncertainty around future Medicaid enrollment puts risk on Medicaid spending in future fiscal years,” Hochul’s Division of the Budget noted in her executive spending plan.

“The Medicaid program continues to grow beyond indexed growth, further challenged by Medicaid enrollment that is no longer assumed to return to pre-pandemic levels.”

Controlling Medicaid spending is particularly changing given the aging of New York’s population, state budget officials said.

“The State’s population is aging and driving significant growth in the Medicaid program,as costs for those who need long term care are ten times that of a typical Medicaid enrollee,” Hochul’s executive spending plan said.

“Additional fiscal pressure is exerted by inflation and increased labor costs.”

Asked about the record-shattering Medicaid spending, Hochul’s budget office said, “Governor Hochul has passed two consecutive balanced budgets that invest in health care while putting record funding in reserves. Estimated costs for increased enrollment are budgeted in the Financial Plan through FY2025.”

Budget officials noted that Medicaid enrollment increased nearly 1.6 million since March of 2020  and the steep rise in unemployment triggered by COVID-19 pandemic was the primary factor.

State officials said they do not track how many of the 7.9 million New Yorkers on Medicaid are undocumented individuals.

https://nypost.com/2023/07/31/record-ny-medicaid-budget-to-shatter-100b-and-migrant-crisis-set-to-only-trigger-another-spike/

Doc Martens spotlights ‘alarming’ DIY shoes promoting gender transition ‘top surgery’

 A Dr. Martens shoe showed the design of a woman bearing the scars from a gender transition “top surgery” as part of the brand’s “DIY Docs” feature. 

The “DIY Docs” feature aims to spotlight independent artists redesigning the classic Dr. Marten shoe, often to promote LGBT causes. The latest example came from “queer illustrator” Jess Vosseteig whose art “focuses on inclusivity, empowerment, and creating conversations surrounding feminism and the queer community.” 

Vosseteig described herself on the company’s website saying, “I love illustrating to empower all genders, break gender stereotypes, and promote body positivity/neutrality. I want my audience to feel seen and heard in my work, be empowered to be themselves, educate others, and push societal norms!” 

Her design of the shoe most notably includes a pink woman who appears to have scars following a double mastectomy, a surgery often used by transgender men to transition.

“The inspiration for my design came from representing queer joy! I wanted to include two stylized people that were part of the queer community. I knew I wanted to incorporate lots of color with rainbows, clouds, and sparkles! I wrote ‘Queer Joy’ on the back of them to send the message that queer joy will always exist,” Vosseteig explained.

While the shoe is not available for sale, Dr. Martens advertised a free giveaway of the pair from its USA Instagram account on Tuesday.

If followers liked the post, followed both Dr. Martens and Vosseteig and tag a friend, they could be eligible for the contest until July 31.

The shoe also does not appear to be available of purchase on Vosseteig’s personal website. 

The shoe brand Dr. Martens featured a shoe design that promoted top surgeries for transgender people.

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Though Dr. Martens did not respond for a comment, the company confirmed that it will not be selling the show and that the design came from the artist alone. 

The design, along with Dr. Martens, was attacked on social media for promoting gender transition surgeries.

“@drmartens is advertising a new shoe celebrating females who get a double mastectomy,” the Libs of TikTok account warned.

The shoe is not available in stores, though Dr. Martens advertised a free giveaway of the pair from its USA Instagram account.

LightRocket via Getty Images

“Why is Dr Martens promoting trans double mastectomies? Cutting off healthy women’s breasts in the name of gender identity should not be promoted,” YouTuber Oli London tweeted.

Moms for Liberty co-founder Tiffany Justice agreed, “Removing the healthy breasts of girls should be as alarming as if the amputation of healthy limbs was happening as part of a social contagion. What if thousands of kids were removing their right arms?”

The controversy resembles the original backlash surrounding the Bud Light brand after transgender influencer Dylan Mulvaney revealed a customized beer can with the activist’s face.

The company quickly insisted that the can was not intended for sale, but the promotion led to a massive decrease in sales, effectively ending Bud Light’s reputation as the most popular beer brand in America.

The “DIY Docs” section of Dr. Martens’ website also featured other shoes promoting LGBT activism with designs reading “QUEER” or “Trans Love.”

Many other shoes were also in partnership with the LGBT activist group The Trevor Project.

https://nypost.com/2023/08/01/doc-martens-spotlights-alarming-diy-shoes-promoting-gender-transition-top-surgery/