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Sunday, August 19, 2018

Harbour BioMed Partners with Kelun-Biotech for Cancer Treatment Antibody


  • Harbour BioMed to develop and commercialize A167 worldwide (excluding Greater China); companies to collaborate on A167 combination therapies
  • Exclusive license agreement potentially valued over $350 million in addition to royalties
  • A167 is an anti-PD-L1 monoclonal antibody in Phase 2 clinical trials discovered and developed by Kelun-Biotech in China, with potential to treat multiple solid tumor and hematological cancers
Harbour BioMed today announced it has entered into an exclusive strategic partnership with Sichuan Kelun-Biotech Biopharmaceutical Co., Ltd. (Kelun-Biotech) to develop and commercialize A167, an anti-PD-L1 antibody in Phase 2 clinical development, worldwide outside of the Greater China region. The companies will also collaborate in developing combination therapies of A167 with other agents for commercialization in their respective territories. The potential value of the partnership exceeds $350 million in addition to royalties.
“Anti-PD-L1 therapy has been validated in many clinical trials in the Immuno-Oncology area. A167 has significant potential as a single agent and as the foundation for combination therapy with other innovative drugs. We are delighted to advance A167 globally and work closely with Kelun-Biotech to achieve its therapeutic potential,” said Dr. Jingsong Wang, Harbour BioMed’s founder, Chairman and Chief Executive Officer. “We plan to conduct A167-based combination trials globally by ourselves, including with innovative compounds we are developing, or in collaboration with our partners, to find better therapeutic options against a wide range of tumor types.” Dr. Wang noted that the partnership with Kelun-Biotech, Harbour’s first global development alliance, is an important step that accelerates our plan to build a highly innovative, clinical-stage portfolio for worldwide markets.
“A167 is one of the important compounds in our portfolio,” said Dr. Tongtong Xue, Chief Executive Officer of Kelun-Biotech. “We are glad to enter this collaboration with Harbour BioMed which is based on trust in our partner’s capabilities and expertise. The Harbour team brings extensive global clinical development experience that will accelerate clinical trials with A167, especially in the area of combinational therapies.” Dr. Xue noted that the collaboration is the second alliance Kelun-Biotech entered with Harbour this year. “We entered a strategic partnership with Harbour to co-discover, co-develop and commercialize antibodies against innovative targets, based on Harbour’s leading fully human antibody discovery platforms. We have made significant progress in our joint discovery programs against multiple targets in oncology and immunological diseases.”
A167 is an immune-oncology investigational antibody developed by Kelun-Biotech. It binds to immune checkpoint protein PD-L1 and reactivate T cells in the body against cancer cells. The antibody has potential usage in a broad range of solid tumor and hematological malignancies in monotherapy and in combination with other agents. A167 is currently in multiple Phase 1 and Phase 2 clinical trials in China targeting lymphoma and solid tumors.
Under the agreement, Kelun-Biotech will receive upfront, development and regulatory milestones, and commercial milestones based on preset goals, with a potential value of more than $350 million, in addition to royalties based on annual net sales. Harbour will have exclusive rights to develop, manufacture and commercialize A167 in regions outside of Greater China. Both companies will share data generated from their own research and clinical trials to support mono and combination therapies of A167 with other agents for both parties’ development and registration.

Hospitals fight for control over fast-growing heart valve procedure


In a campaign motivated by a muddy mix of health care and business, smaller hospitals and the medical device industry are arguing that the TAVR technique should be more widely deployed.

When Medicare in 2011 agreed to pay for a revolutionary procedure to replace leaky heart valves by snaking a synthetic replacement up through blood vessels, the goal was to offer relief to the tens of thousands of patients too frail to endure open-heart surgery, the gold standard.
To help ensure good results, federal officials limited Medicare payment only to hospitals that serve large numbers of cardiac patients.
The strategy worked. In the past seven years, more than 135,000 mostly elderly patients have undergone transcatheter aortic valve replacement, known as TAVR. And TAVR’s in-hospital mortality rate has dropped by two-thirds, to 1.5 percent.
Now, in a campaign motivated by a muddy mix of health care and business, smaller hospitals and the medical device industry are arguing that the technique should be more widely deployed. They note only about half of the nearly 1,100 hospitals offering surgical valve replacement can do TAVR. And they say current limitations discriminate against minorities and people in rural areas, forcing patients to undergo a riskier and significantly more invasive treatment — or miss getting a new valve altogether.
Hospitals that already have a TAVR franchise are fighting to stifle new competitors, saying programs that don’t do enough procedures would not provide high-quality care.
At stake is the care of thousands of patients. Half of the more than 250,000 Americans estimated each year to develop severe aortic valve stenosis — narrowing of the valve that regulates the flow of blood from the heart to the largest artery of the body — die within two years. Getting an artificial heart valve lowers that death rate to as low as 17 percent, studies show.
Also at stake is the $45,000 Medicare pays hospitals for each TAVR case — excluding the doctor’s fee. While hospitals typically make only a small profit on the procedure — partly because the device costs more than $30,000 — they benefit because each TAVR patient typically needs other cardiac services and tests that can boost the hospital’s bottom line.
In addition, offering TAVR carries a cachet that helps recruit and retain top specialists, who bring in more patients.
At a Medicare advisory committee hearing in Baltimore on July 25, both sides of the debate emphasized how they were seeking to help patients. But the economics of TAVR was ever-present given the horde of medical device and hospital officials and industry analysts in the audience.
The committee split on the issue, although a majority of members backed the continued use of volume requirements. The Centers for Medicare & Medicaid Services is expected to decide later this year whether to change its patient volume minimum for TAVR.
Dr. Jason Felger, a heart surgeon who wants his community hospital in San Angelo, Texas, to offer the procedure, said behind the fight over TAVR is protecting profit and revenue. He refers patients to hospitals more than three hours away for the procedure or, if they aren’t willing to travel, they risk their lives to undergo the conventional operation.
Hospitals that offer TAVR, he said, aren’t willing to give up the referrals they now rely on from other hospitals.
“It’s all about the money,” he said.

IMPROVING A HOSPITAL’S REPUTATION

Unlike open-heart surgery, in which the chest is cracked open to remove the unhealthy valve, TAVR involves threading a catheter tipped with a replacement valve through a blood vessel to the heart. Doctors then implant the new valve. The old valve remains but is pushed aside, and the new one takes over its work.
With this less invasive valve procedure, people can get out of the hospital within two or three days and get back to daily activities much sooner than with open-heart surgery, which typically has a six-week recovery time.
TAVR has been approved by the Food and Drug Administration for people who cannot have open-heart surgery or for whom it would be risky. These include the elderly and frail and people with complications such as kidney and lung disease. But TAVR use has expanded among younger, and less sick, patients in recent years. Within the next year, the FDA is likely to approve the procedure for all patients needing a new aortic valve, industry analysts say.
TAVR does carry risks, including stroke. Patients may also need a pacemaker after the procedure to regulate heart rhythm.
TAVR involves threading a catheter tipped with a replacement valve through a blood vessel to the heart. Doctors then implant the new valve.
The large majority of patients getting TAVR are 65 and over. The importance of Medicare’s blessing goes beyond its payments, since private insurers typically follow Medicare standards. Physicians seeking to expand use of TAVR point out that Medicare has no volume requirements for other major cardiac procedures.
The two largest TAVR medical device companies are divided on the issue. Edwards Lifesciences Corp. of Irvine, Calif., supports eliminating the minimum-patient requirements, while Minneapolis-based Medtronic favors keeping the status quo. The Advanced Medical Technology Association, or AdvaMed, an industry trade group, also supports the change.
About 50,000 patients are expected to have TAVR this year, and those numbers are forecast to double by 2020, according to American College of Cardiology and other major heart groups.
When Michael Vigil, 50, needed TAVR in May, he drove more than three hours from his home in eastern Wyoming to a hospital in Denver. Before the procedure, the oil-drilling contractor was constantly tired and out of breath — even after mundane chores at home. Vigil’s aortic valve had been damaged from radiation treatments for non-Hodgkin lymphoma decades before.
Vigil was sent home a day after the TAVR procedure. He was back at work the following week.
He said he felt more energized almost immediately after having the procedure.
“It’s worked so well, my wife wishes they dialed it back a little,” Vigil said.
Donnette Smith, president of the patient advocacy group Mended Hearts, said many patients don’t have good accessto the procedure.
“Patients do not know of this option unless they walk through the right door of the right hospital,” said Smith of Huntsville, Ala. She had heart valve surgery in 1988.
Mended Hearts receives funding from device makers.

‘EXPERIENCE MATTERS’

To gain Medicare approval for TAVR programs, hospitals have to perform annually 50 open-heart valve repairs, 400 angioplasties and 1,000 cardiac catheterizations — a procedure in which medical teams use skills similar to those needed for TAVR.
Doctors at larger hospitals say procedure volume is a good predictor for success. The American College of Cardiology and the Society of Thoracic Surgeons recommend hospitals be able to do at least 50 TAVRs each year within two years of startup. More than three-quarters of the 582 hospitals authorized by Medicare for TAVR meet that standard.
“Whether it’s playing the violin or performing heart surgery, experience matters,” said Dr. Thoralf Sundt, chief of cardiac surgery at Massachusetts General Hospital.
Dr. Ashish Pershad, an interventional cardiologist who performs TAVR at Banner Medical Center in Phoenix, agreed that there are access issues. But he said it’s not because of a lack of programs. Rather, he said, surgeons too often don’t refer patients for it because they make more money from doing the open-heart surgical valve replacement.
“Patients are missing out on this procedure because they are not being referred, and primary care doctors lack knowledge about it,” he said.

EXPANDING TREATMENT OPTIONS

Doctors seeking a Medicare rule to widen access say there is little evidence hospitals that perform more TAVRs have lower mortality rates. As long as they can show low mortality and complications, they believe their hospitals should be able to offer the service.
“Our intention is not to lower the quality of outcomes by expanding to ‘low volume’ centers; but to provide excellent care to a larger population of patients,” Felger and his colleagues at Shannon Medical Center in San Angelo, Texas, wrote to the CMS advisory group.
Last year, Felger said, he sent a dozen patients to hospitals in Austin or Dallas for TAVR, while eight other patients opted for the open-heart surgery.
“I have patients tell me they would rather have the surgical procedure at their local hospital than traveling to another city,” he said. “They tell me ‘Let’s do this; if I die, I die.'”

Docs should aid patients quit smoking before orthopedic surgery


Tobacco use is associated with several negative surgical outcomes, including impaired wound healing, increased infection, and poor lower joint replacement results.

Tobacco smokers who have orthopedic surgery face higher risks of complications and should be enrolled in smoking cessation programs, research shows.
A recent review of 26 scientific articles on smoking and orthopedic surgery found significant risk of negative outcomes for patients.
“People who smoke heavily before orthopedic surgery may have more nonmedical complications than nonsmokers. Therefore, all orthopedic surgery patients should be screened for tobacco use,” wrote the author of the review in Hospital Practice, E. Carlos Rodriguez-Merchan MD, PhD.

SMOKING CESSATION

Rodriguez-Merchan says surgeons should help patients stop smoking before and after orthopedic surgery.
“The adoption of smoking cessation methods such as transdermal patches, chewing gum, lozenges, inhalers, sprays, bupropion, and varenicline in the perioperative period should be recommended. Perioperative smoking cessation appears to be an efficacious method to decrease postoperative complications even if it is implemented as late as four weeks before surgery.”
Research published last year examined an online smoking cessation program used by smokers undergoing orthopedic trauma surgery. The study showed both strengths and weaknesses of the cessation program.
The study featured 31 orthopedic trauma patients. Engagement in the online cessation program was high, with 28 of the patients using the program during their hospital admissions. In addition, 20 patients completed follow-up smoking cessation phone calls after discharge.
The patients reported several weaknesses of the online cessation program:
  • Lack of time
  • Desire for additional support
  • Computer illiteracy or technology issues
  • Feeling unprepared or too stressed to quit
  • Reaching the point where nothing more could be learned from the online program

SMOKING COMPLICATIONS

Rodriguez-Merchan found multiple scientific articles that concluded smoking increases the risk of complications after orthopedic surgery.
“Orthopedic perioperative complications of smoking include impaired wound healing, augmented infection, delayed and/or impaired fracture union and arthrodesis, and worst total knee and hip arthroplasty results,” he wrote.
  • One fracture study found that a cessation protocol started in the inpatient setting and performed for six weeks decreased the risk of developing at least one postoperative complication. For the control group, 38% experienced at least one complication, compared to 20% of patients in the cessation protocol.
  • Spine surgery research determined that smoking has a negative impact on surgical outcomes after lumbar and cervical spine procedures.
  • A spinal fusion study showed smoking increases the rate of perioperative complications. Smoking cessation was recommended for four weeks following surgery.
  • In anterior cruciate ligament surgery research, smoking was linked to increased rates of infection and venous thromboembolism after ACL reconstruction.

Mayo Clinic rips CNN report as ‘inaccurate, incomplete, irresponsible’


Mayo ‘shocked and deeply saddened by the wholly inaccurate and incomplete reporting’ of alleged medical kidnapping. CNN stands by its coverage.


KEY TAKEAWAYS

Mayo denies accusations that it attempted to ‘medically kidnap’ a patient.
CNN accused of having ‘a pre-determined narrative’ for the story that ignored Mayo’s perspective.
The cable network says Mayo ‘has failed to point out any facts that CNN got wrong.’
It’s been an eventful week for the Mayo Clinic.
On Tuesday, the renowned Rochester, Minnesota–based health system was named the nation’s best hospital for the third straight year in the widely read annual rankings from U.S. News & World Report, which includes metrics such as patient experience.
On Wednesday, however, Mayo was the subject of a less-favorable patient experience story in a scathing investigative journalism piece on CNN.
The cable news channel reported that Mayo attempted to “medically kidnap” 18-year-old Alyssa Gilderhus, a high school senior who’d spent two months at the hospital after suffering a ruptured brain aneurism.
The reporting highlights raw video of Mayo staffers grabbing Gilderhus by the arm while she was in a wheelchair and allegedly trying to stop her from leaving the hospital with her family.
“She was truly being held captive,” her grandmother, Aimee Olson told CNN. “I would never believe a hospital could do that—never in my wildest dreams.”
On Thursday, Mayo went public and called the CNN piece “inaccurate, incomplete and irresponsible reporting.”
“A team of Mayo Clinic leaders met with CNN for more than four hours to give them context and share insights to inform their reporting and help them see that there were highly complex and sensitive family dynamics involved in caring for this patient,” Chris Gade, chair, Mayo Clinic Department of Public Affairs, said in a media release.
“While we knew the reporter was focused on a pre-determined narrative, the information we provided should have helped them see that their premise was inaccurate. Instead they chose to ignore that information,” Gade said. “We were shocked and deeply saddened by the wholly inaccurate and incomplete reporting that was published.”
In a letter to Rick Davis, CNN’s executive vice president for standards and practices, Gade called Gilderhus’s experience “a complex situation involving a vulnerable adult in a suspected abusive family environment.”
Gade ticked off a 12-point critique of the reporting that included allegations that CNN contacted patient care staff “with veiled threats and ask(ed) them to breach confidentiality in order to corroborate information.”
CNN returned fire with a point-by-point rebuttal of Mayo’s complaint.
“Mayo has failed to point out any facts that CNN got wrong. CNN has made no corrections or changes to the story,” the network said.

Top world pork firm shuts China slaughterhouse to curb deadly disease


China has ordered the world’s top pork producer, WH Group Ltd, to shut a major slaughterhouse as authorities race to stop the spread of deadly African swine fever (ASF) after a second outbreak in the planet’s biggest hog herd in two weeks.
The discovery of infected pigs in Zhengzhou city, in central Henan province, about 1,000 km (625 miles) from the first case ever reported in China, pushed pig prices lower on Friday and stirred animal health experts’ fears of fresh outbreaks – as well as food safety concerns among the public.
Though often fatal to pigs, with no vaccine available, ASF does not affect humans, according to the United Nations’ Food and Agriculture Organisation (FAO).
ASF has been detected in Russia and Eastern Europe as well as Africa, though never before in East Asia, and is one of the most devastating diseases to affect swine herds. It occurs among commercial herds and wild boars, is transmitted by ticks and direct contact between animals, and can also travel via contaminated food, animal feed, and international travelers.
WH Group said in a statement that Zhengzhou city authorities had ordered a temporary six-week closure of the slaughterhouse after some 30 hogs died of the highly contagious illness on Thursday. The plant is one of 15 controlled by China’s largest pork processor Henan Shuanghui Investment & Development, a subsidiary of WH Group.
Zhengzhou city authorities have banned all movement of pigs and pork products in and out of the affected area for the same six weeks.

Shuanghui said in a separate statement on Friday it culled 1,362 pigs at the slaughterhouse after the infection was discovered.
The infected pigs had traveled 2300 kilometers by road from a live market in Jiamusi city in China’s northeastern province of Heilongjiang, through areas of high pig density to central Henan. Another northeastern province, Liaoning, has culled thousands of pigs since a first case of ASF was reported two weeks ago.
The pigs’ long journey, and the vast distance between the two cases, stoked concerns about the spread of disease across China’s massive pig herd, as well as potentially into Japan, the Korean Peninsula and other parts of Asia.
“When pigs travel long distance, especially under such high temperatures, they would accumulate much waste on the way. And the driver might have to stop many times to rinse the vehicles and the pigs, which will leave the waste all along the way,” said Feng Yonghui, chief researcher at trade website Soozhu.com.
“If there is ASF virus in the waste, it is very easy for pigs transported in other trucks passing by to catch it. It is very risky,” Feng said.
The race in recent years to build vast pig farms in China’s north-eastern cornbelt has also increased the number of pigs being transported across country from farm and market to slaughter and processing in the south.
That underlines the challenge for the government in trying to contain infection.
“The areas of concern now involve multiple Chinese provinces and heighten the likelihood of further cases,” the Swine Health Information Center, a U.S. research body, said in a note.
South Korea doesn’t import pork or pigs from China, but the government has stepped up checks at airports on travelers from the country, and recommended visitors there avoid farms and live markets, the Ministry of Agriculture said on Friday.
In Japan, authorities have ramped up checks on travelers from the affected regions, its Ministry of Agriculture said. It bans imports of raw pork from China.

‘A LITTLE SCARED’

Pig prices dropped on Friday amid concerns about the outbreak on demand for pork, a staple in China’s diet with retail sales topping $840 billion each year. Analysts said farmers may also rush to sell their hogs fearing the infection may spread to their herds.
National hog prices were at 13.97 yuan ($2.03) per kilogram on Friday, down 0.7 percent from Thursday, according to consultancy China-America Commodity Data Analytics.
In central Henan, Hubei and Hunan provinces, prices on average fell more heavily, down 1.4 percent.
“In the short term, there will be a pig-selling spree,” said Alice Xuan, analyst with Shanghai JC Intelligence Co Ltd.
As Zhengzhou city froze pig movements, Heilongjiang authorities were also investigating whether the pigs involved were infected in the northeastern province bordering Russia.
Meanwhile comments on the country’s Twitter-like Weibo highlighted worries about the safety of eating pork, the nation’s favorite meat. The relationship between people and pigs in China is close, with the Chinese word for “home” made up of the character “roof” over the character for “pig”.
Posts expressing concern that infected meat may enter the food stream and fears about whether it is safe to eat pork garnered the most attention.
“A little scared. What will happen if you eat (pork)?” said one poster.
WH Group said on Friday it did not expect the closure of the Zhengzhou slaughterhouse to have any adverse material impact on business, helping its shares rise 0.8 percent after slumping 10 percent on Thursday. Shuanghui shares were up 0.67 percent on Friday afternoon.
The Zhengzhou operation accounts for an “insignificant” portion of WH Group’s operations, the company said, adding it does not expect any disruption to supply of pork and related products as a result of the temporary closure. On Thursday, Shuanghui said it had diverted sales orders to other operations.

Biotech week ahead: August 20


Biotech stocks continued to see lackluster sentiment this week. The upcoming week’s catalytic events could have a major say in charting the course for biotech stocks. Stay tuned to the following events.

Conferences

  • 2018 World Congress on Parkinson’s Disease and Related Disorders (IAPRD) – Aug. 19-22 in Lyon, France
  • 28th World Congress on Diabetes, Obesity & Heart – Aug. 20-21 in Tokyo, Japan
  • 13th Euro-Global Gastroenterology Conference – Aug. 20-21 in Rome, Italy
  • Annual Meeting on Infectious Diseases – Aug. 20-21 in Prague, Czech Republic
  • 3rd International Conference on Clinical and Counseling Psychology Aug. 20-21 in Singapore City, Singapore
  • 20th Global Obesity Meeting – Aug. 24-25 in Singapore City, Singapore
  • 3rd International Conference on Hypertension and Healthcare – Aug. 24-25 in Tokyo, Japan

PDUFA Dates

Mallinckrodt PLC MNK 1.61% awaits FDA ruling on its NDA for Stannsoporfin, which it acquired as part of its acquisition of privately-held InfaCare. Stannsoporfin is being evaluated for treating neonates at risk for developing severe hyperbilirubinemia, or severe jaundice. The Prescription Drug User Fee Act (PDUFA) date is Wednesday, Aug. 22.
The FDA is set to give its verdict Thursday on Kala Pharmaceuticals Inc KALA 2.57%‘s Inveltys for treating inflammation and pain in patients who have undergone ocular surgery.

Clinical Trial Presentations

Altimmune Inc ALT 2.97% is due to release Phase 1 data for its Nasoshield anthrax vaccine candidate in early Q3.
Esperion Therapeutics Inc ESPR 3.11% will release in August Phase 3 data for bempedoic acid/ezetimibe, being evaluated for hypercholesterolemia.

Earnings

Tuesday
  • Medtronic PLC MDT 0.57%(before the market open)
  • Myriad Genetics, Inc. MYGN 0.76%(after the market close)

IPO Quiet Period Expiry

2 Reasons Alnylam Stock Fell on a Landmark Drug Approval


You would think that when a drug company that’s been working for 16 years to develop drugs using a novel therapeutic approach wins its first-ever approval from the U.S. Food and Drug Administration (FDA), confetti would fall from the ceiling and its investors would be celebrating a huge stock gain the next day. That didn’t happen this week for shareholders of Alnylam Pharmaceuticals (NASDAQ:ALNY), with shares dropping 6.6% the day after the announcement, and there were two main reasons for that.
On Aug. 10, Alnylam announced that the FDA approved patisiran, now named Onpattro, for treatment of polyneuropathy in patients with the rare disease of hereditary transthyretin-mediated amyloidosis (hATTR). hATTR is an inherited, progressively debilitating and potentially fatal disease in which a mutation of the transthyretin gene causes abnormal amyloid proteins to accumulate and damage body organs and tissue, including peripheral nerves and the heart.
The mean survival of patients with the disease is 4.7 years after diagnosis, and Onpattro is the first FDA-approved treatment for it. Alnylam says that there are about 3,000 patients in the U.S. diagnosed with hATTR polyneuropathy, but that the disease is so underdiagnosed that there could be as many as 10,000 to 15,000 candidates for the drug in the country.
Alnylam is one of several companies working on a new class of drugs that block the production of disease-causing proteins. Alnylam’s technology is called RNA interference (RNAi), and works by silencing messenger ribonucleic acid (mRNA) that is specific to production of the target protein. Onpattro silences the liver’s manufacture of the protein transthyretin (TTR), normally a carrier of vitamin A in the bloodstream. People with hATTR have a mutation in the gene responsible for TTR production, which causes abnormal proteins to accumulate in the body’s tissue, causing nerve damage (polyneuropathy) or heart damage (cardiomyopathy). Onpattro stops the disease at its source.
While the approval was undoubtedly good news, two issues revealed along with the announcement created concern with investors.

1. Agreements with payers clouds the revenue picture

Alnylam announced it has reached value-based agreements (VBA) with payers representing 76% of the commercial medical lives in the U.S. to cover the expense of Onpattro. The good news is that the company was proactive in making sure that insurers will pay for the drug. The bad news for investors is that the VBAs create uncertainty about the revenue Onpattro will actually bring in.
The agreements involve rebates or discounts on the cost of the drug if a patient’s response to it is “suboptimal.” If progression of the disease is halted or reversed, the patient will be charged the full price of the drug. If the clinical results do not meet a certain standard — and the company was unwilling to discuss what the measures are or what that standard would be — there will be several levels of discounts that would be applied as rebates to the payer. The testing will start nine to 12 months after the beginning of treatment and will be assessed annually by the patient’s doctor.
The company revealed that the drug would be priced at an annual average list price of $450,000, yielding an average effective price of $345,000 after rebates to government institutions that are mandated by law. That pricing was probably in the ballpark of what analysts expected, but unfortunately, the effective price does not include rebates that would happen as a result of the VBAs. Analysts on the conference call tried to get a handle on what assumptions could be made to get an estimate of the impact of those rebates, but the company couldn’t give an estimate of a failure rate for the drug.
The market hates uncertainty, and the unknowns around the value-based drug pricing plan make estimating revenue for the company difficult, and that uncertainty is unlikely to be resolved for a year or so.

2. Alnylam can’t use cardiac data to market the drug in the U.S.

Throwing even more confusion into the mix was the potential impact of the conservative position the FDA took on the cardiac benefits of Onpattro. The pivotal trial for the drug had some exploratory endpoints for cardiac benefits for a subpopulation of the trial participants who had evidence of pre-existing cardiac amyloid involvement. Not all the endpoints were met with statistical significance, but some were, providing some evidence that the drug can reverse heart damage caused by the disease.
The European Committee for Medicinal Products for Human Use (CHMP) reviewed the trial results and recommended to the European Commission that the drug be approved with the cardiac benefits included in the product characteristics. Alnylam is still waiting for the final decision by European authorities, but had hoped to get the cardiac benefits in the U.S. label as well.
As it turned out, the FDA did not allow a mention of cardiac benefits on the drug label because it felt they were not firmly established by the trial results. Alnylam executives on the conference call said that they would be discussing label expansion with the FDA, but the hurdle to getting a cardiac indication in the U.S. may require additional clinical trials, adding months or years to the process.
The FDA decision is a big deal for investors because it adds to uncertainty about how Onpattro will do against the competition. Ionis Pharmaceuticals and its partner Akcea Therapeutics have already won European approval for their drug Tegsedi, with a label for polyneuropathy but without the cardiac indication. Alnylam is expecting that a broader label that includes cardiac benefits would give it a serious advantage over Tegsedi. Also, Pfizer announcedearlier this year that its drug tafamidis reduced mortality and cardiovascular-related hospitalizations for patients with TTR cardiomyopathy after 30 months, news that sent Alnylam stock down 8%.

The concerns may be overblown

Uncertainty over these two factors that were revealed along with the excellent news of the FDA approval is real, but the market may start to feel better about the situation over time. The value-based agreements with insurance providers does have the potential to impact Alnylam’s revenue, but it may well be the way of the future for these very innovative approaches to treating rare diseases. Payers don’t want to commit to covering the cost of drug therapies that don’t work for some segment of the patient population, who may be desperate to find something that helps.
On the flip side, having a VBA in place lowers the risk for payers, making them more willing to say in advance that the treatment will be covered. For its part, Alnylam has confidence that the drug actually will work for the large majority of patients, having reviewed in detail the impact the drug had on its trial participants. It chose a time frame for the evaluation that is far enough out in time for the clinical benefits to be clear to the patients and their doctors.
The loss of competitive advantage that comes with the lack of a cardiac indication in the U.S. is a real concern, but it’s going to take some time to see how serious it is. Ionis is expecting a decision from the FDA on Tegsedi on October 6, and if the drug wins approval, it could be a serious threat to Onpattro due to more convenient administration. Onpattro is an 80-minute intravenous transfusion every three weeks, while Tegsedi is a weekly subcutaneous injection. However, possibly balancing out the convenience of an injection is the fact that patients taking Tegsedi need to be monitored for thrombocytopenia, or low blood platelets, a procedure that needs to be carried out with a frequency between daily and every two weeks, depending on platelet count. There is no such requirement for Onpattro, so it’s unclear which drug gets the nod for greater convenience.
The threat from the Pfizer drug tafamidis has stirred concern among analysts, but it’s even less clear how that drug will affect Onpattro sales. The clinical tests are hard to compare because the patient populations were different. The Pfizer trial included patients with wild-type ATTR, which is not hereditary and are not included in the Onpattro label. If tafamidis is approved, the indication will be for cardiac myopathy but not for neuropathy, the indication for Onpattro and Tegsedi. In fact, the FDA rejected an application by Pfizer for tafamidis as a treatment for neuropathy six years ago for lack of proof of efficacy. So tafamidis is apparently inferior to the other two drugs for treating nerve damage, and without more clinical data, there is no head-to-head comparison for the cardiac indication, either.
Perhaps an even bigger disadvantage for Pfizer lies in the differences between how the drugs work. Onpattro and Tegsedi work by inhibiting the production of TTR proteins, fighting the disease at its source, while tafamidis stabilizes the proteins to prevent the deposits in the heart and nerves that do the damage. Tafamidis slows the progression of the disease, while Onpattro and Tegsedi halt it and can even reverse its effects. The press release from the FDA announcing the approval of Onpattro clearly states the agency’s desire for more treatments of this type:
“This approval is part of a broader wave of advances that allow us to treat disease by actually targeting the root cause, enabling us to arrest or reverse a condition, rather than only being able to slow its progression or treat its symptoms. In this case, the effects of the disease cause a degeneration of the nerves, which can manifest in pain, weakness and loss of mobility,” said FDA Commissioner Scott Gottlieb, M.D. “New technologies like RNA inhibitors, that alter the genetic drivers of a disease, have the potential to transform medicine, so we can better confront and even cure debilitating illnesses.”

Investors should keep the bigger picture in mind

Uncertainty in a company’s outlook is something that is usually bad for the stock price, but one thing that has become more certain for Alnylam has been the usefulness of RNAi for developing novel drug therapies. The approval of Onpattro should increase the value of the other drugs in Alnylam’s pipeline for long-term investors. The company has three other drugs in late-stage trials and three more in earlier stages. Besides genetic medicines, it is focusing on cardio-metabolic diseases, hepatic infectious diseases, and central nervous system diseases. The biggest challenge of RNA-based medicines has been the ability to concentrate enough of the drug in the critical organ, a problem that Alnylam has solved well enough to produce an effective therapy.
The ability to silence the production of disease-causing proteins could lead to many breakthrough therapies, and Alnylam is at the forefront of the innovation. Patient investors who are willing to live with the uncertainty inherent in this frontier of medicine — and the ups and downs of the stock — could have big rewards down the road.