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Tuesday, August 21, 2018

3 Drugmakers Raise Concerns Over FDA Draft Guidance for Major Depression


As the U.S. Food and Drug Administration (FDA) begins to take aim at updating its 40-year-old draft guidance on drugs that treat major depressive disorder (MDD), three drugmakers with key business in that space are raising some concerns.
JanssenTakeda Pharmaceutical, and Lundbeck each expressed their concerns regarding the proposed changes, the Regulatory Affairs Professional Society (RAPS) reported Monday.
In June, the FDA announced its intentions to update the draft guidance for drugs that treat MDD. The guidance had not been updated since the 1970s. When it released the draft guidance proposal, the FDA said the guidance would specifically address the agency’s “current thinking regarding the overall development program and clinical trial designs for antidepressant drug products.” In the draft guidance, the FDA said it intended to look at the onset of action in drugs that patients take to treat their symptoms of MDD. The FDA said the guidance should address whether or not a particular drug development program is being pursued for short-term or long-term use. Additionally, the FDA noted that clinical trial design and the subsequent regulatory issues could differ for antidepressants drugs currently in development that are considered “fast-acting.” The FDA said the guidance is being updated to include modern evaluations, trial designs and endpoints, as well as diagnostic tools.
This week, the three companies each raised some concerns over the new draft outline.
Danish drugmaker Lundbeck, RAPS reported, asked the FDA to “refrain from classifying antidepressants based on the timing of their onset of effect.” Lundbeck told the agency that those classifications could be addressed in the labeling on the prescription.
Janssen, part of the Johnson & Johnson family, had concerns over the classification the FDA proposed for partial responders and non-responders in treatment-resistant depression (TRD). The FDA said those patients who have not responded to prior treatments should be enrolled in TRD studies, according to the draft guidance document.  The FDA said those patients should be randomized to either the new treatment or continue on the one antidepressant that they failed to respond to in such trial cases.
In its response to that proposal, Janssen asked the FDA to “consider an alternative approach, in which the study design and study populations are based on the pharmacological properties of the study drug and relevant clinical data,” according to RAPS. Janssen added that while the draft guidance focuses on MDD, some of the issues may be applicable to other types of depression studies.
“Recognizing recruitment challenges and high unmet need for safe and more effective treatments for pediatric and adolescent patients with major depression, Janssen requests the Agency to consider innovative approaches and flexibility in the required number of adequate and well-controlled short-term clinical studies in these patient populations,” the drugmaker said, as cited by RAPS.
Takeda likewise asked the FDA to address trial flexibility in treatment-resistant patients. The Japan-based pharma giant also suggested the FDA draft guidance should address “development strategies for “for an antidepressant to demonstrate an effect on specific symptoms.”

Myriad Genetics sees FY19 adjusted EPS $1.70-$1.75

Consensus $1.40

Meet Rigel Pharmaceuticals: A talk with CEO Raul Rodriguez


Rigel Pharmaceuticals (RIGL) is a biotechnology company dedicated to discovering, developing and providing novel small molecule drugs that improve the lives of patients with immune and hematologic disorders, cancer and rare diseases. In an exclusive interview with The Fly, CEO and President Raul Rodriguez talked about the company’s flagship product Tavalisse, drug pricing, Rigel’s additional pipeline, and much more. Here are some of the highlights: TAVALISSE LAUNCH AHEAD OF EXPECTATIONS: During the company’s last earnings results, Rigel said that Tavalisse’s launch is proceeding ahead of expectations. CEO Raul Rodriguez believes the “very positive physician response” is contributing to early adoption of Tavalisse since its launch on May 29th. “We are also seeing initial benefits of Tavalisse’s broad indication, with some demand for the product across all lines of therapy,” the chief executive pointed out, adding that “prescriptions are being covered by both commercial and government payers, and reimbursement is occurring as expected.” DRUG PRICING: President Donald Trump has been very vocal on drug pricing and the healthcare industry. Rigel’s CEO believes it is “unclear the impact that any future policy will have.” Rodriguez also noted that prior to launch, the company conducted “extensive market research” with payers and physicians that treat immune thrombocytopenia, or ITP, to determine an appropriate price for Tavalisse. “At this price and with our access and support programs, we anticipated strong payer and physician response, and patient access, and that has been the case during this initial launch period,” the executive added. WHAT’S NEXT FOR TAVALISSE: The launch of Tavalisse in May heralded Rigel’s transition to a commercialized company. Looking at the remainder of 2018 and beyond, Rodriguez said the goal is to “leverage the unique mechanism of action and proven safety of fostamatinib to broaden its use in ITP within its approved label and into new indications that are in clinical development.” For ITP, Rigel is on track for a marketing authorization application submission in the EU in the second half of 2018 and is in ongoing discussions with the FDA on the design of a registration trial of fostamatinib in patients with autoimmune hemolytic anemia, the chief executive highlighted. FUNDING: Earlier this year, Rigel completed an underwritten public offering that resulted in net proceeds of over $67M. CEO Raul Rodriguez pointed out that cash and short-term investment balance totaled “approximately $135M at the close of Q2 2018,” providing the company with “sufficient cash to fund operation into Q4 2019.” ADDITIONAL PIPELINE: While Rodriguez understands why “current attention is rightly focused” on the company’s flagship product Tavalisse for the treatment of thrombocytopenia in adult patients with chronic ITP, he noted that “the breadth and depth of our pipeline” is less known. “Our current clinical programs include a Phase 2 trial with fostamatinib in autoimmune hemolytic anemia and a clinical trial with our IRAK 1/4 inhibitor, R835. In addition, we have product candidates in development with partners BerGenBio AS, Daiichi Sankyo and Aclaris Therapeutics,” the CEO said. The company’s pipeline is expected to be discussed in detail at the upcoming investor and analyst day on October 4th. “Meet the Company” is The Fly’s recurring series of exclusive short interviews with Executive Officers to offer a deeper look inside the company.

What’s got into Premier Inc.


After Premier (NASDAQ: PINC) announced pleasing fiscal 2018 fourth-quarter and full-year results, shares of the healthcare service provider focused on analytics and supply chain solutions jumped 12% as of 11:01 a.m. EDT Tuesday.

Here’s a look at the key headline numbers from the company’s fiscal fourth quarter:
  • Fourth-quarter sales jumped 8% to $434 million. The increase was driven by a 10% increase in supply chain services and a 2% bump in performance services revenue. For context, Wall Street was only expecting $412 million in revenue, so the result was a nice beat.
  • Non-GAAP net income rose 35% to $94.8 million, or $0.70 per share. That also compares favorably to the $0.66 in adjusted earnings that the pros had forecast.
Zooming out to the full year, here’s what the company reported:
  • Revenue jumped 14% to $1.66 billion.
  • Non-GAAP net income increased 19% to $317.1 million.
  • Non-GAAP EPS rose 22% to $2.31.
  • The company completed its $200 million stock-buyback program during the year. A new $250 million stock-repurchase program has been implemented.
And here’s what the company is projecting for fiscal 2019:
  • Total revenue is expected to land between $1.72 billion and $1.79 billion. This represents growth of 4% to 8%.
  • Non-GAAP EPS is expected to land between $2.60 and $2.72. This represents growth of 13% to 18%.
For context, Wall Street was expecting revenue and non-GAAP EPS of $1.75 billion and $2.66, respectively, for the year ahead.
Given the better-than-expected results and positive guidance, it isn’t hard to figure out why shares are moving higher today.

CEO Susan DeVore’s commentary on the year ahead was focused on how Premier will continue to drive steady growth for investors:
Our comprehensive, data-driven analytics and consulting services provide health systems with a total value proposition aimed at comprehensively reducing costs, improving quality and safety, and moving our industry towards value-based care. In partnership with our members, we are constantly striving to expand and evolve our offerings to leverage new technologies and capitalize on new opportunities emerging in the marketplace. We believe Premier will continue to deliver meaningful value for our members, meaningful growth for our company, and long-term return and value for our stockholders.
Overall, Premier’s results show that the company is executing well. With a winning business model in place and a modest valuation, this looks like a great stock for healthcare investors to get to know.

NeoGenomics initiated at Leerink


NeoGenomics initiated with an Outperform at Leerink. Leerink analyst Puneet Souda started NeoGenomics with an Outperform rating and $18 price target. The analyst believes the company is a “uniquely” positioned one-stop shop oncology testing service provider with faster turnaround times versus its competition and a tech-only model that has helped it grow to the current levels. Souda projects NeoGenomics to deliver a 13% sales CAGR and about 25% adjusted EBITDA growth over the longer-term.

Cronos Group announces initial supply agreement for retail distribution


Cronos Group announced its initial supply agreements for retail distribution, both government-operated and private, across Canada for the upcoming launch of the recreational market in October 2018. Cronos Group has secured listings and signed binding master supply agreements with both the Ontario Cannabis Retail Corporation and the BC Liquor Distribution Branch.

Perrigo price target lowered to $77 from $84 at Wells Fargo


Wells Fargo analyst David Maris lowered his price target for Perrigo to $77 from $84 after the company reported Q2 earnings and following a recent meeting with management. The analyst reiterates a Market Perform rating on the shares.