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Friday, September 21, 2018

UK court backs NHS in fight with Bayer, Novartis over off-label Avastin use


After a long legal fight with Bayer and Novartis, England’s National Health Service has won the right to use a compounded form of Roche’s Avastin off-label in patients with wet age-related macular degeneration over much more expensive drugs Eylea and Lucentis.
Even though Avastin is only approved in England to treat certain cancers, clinicians in the country can now use a compounded version of the drug to treat AMD. In the Friday decision, a judge ruledthat a practice by 12 clinical commissioning groups to use Avastin instead of more expensive meds from Novartis and Bayer is legal, rejecting arguments from the pharma companies.
The drugmakers argued the policy was illegal under EU law because Avastin isn’t approved to treat AMD.
In the end, the court ruled that the European Medicines Agency “does not have exclusive competence to determine whether Avastin is clinically effective and safe for ophthalmic use,” according to a summary of the decision. The court said NICE and clinical consulting groups can also weigh in.
With the ruling, NHS’ use of the cheaper drug could enable savings of more than £100 million per year, The Guardian reports. Bayer’s Eylea costs £816 per injection and Novartis’ Lucentis costs about £551, both before discounts, according the court. A dose of compounded Avastin costs £28.
Following the decision, Dr. Sheuli Porkess, deputy chief scientific officer of the British pharma trade group ABPI, said the “extraordinary judgement potentially undermines the regulation of all medicines and by doing that, neither patients nor doctors have clarity on what information to trust.” The confusion is “deeply unhelpful” amid Brexit talks, Porkess added.
The ruling follows years of arguments in the case after regional NHS officials started approving the off-label use of Avastin back in 2011. The drugmakers have also fought the battle elsewhere. In 2012, a National Institutes of Health study found the two drugs essentially equivalent.

T-cell therapy for eradicating HIV reservoirs proves safe in small study


Antiretroviral drugs have revolutionized the treatment of HIV, the virus that causes AIDS, but they’re not considered a cure. That’s because HIV can hide in the body in “reservoirs” that can resurge at any time. Hence much of the HIV research that’s happening today is focused on combating HIV reservoirs.
Scientists at the University of North Carolina at Chapel Hill are reporting progress in their efforts to use immunotherapy—a technology that’s most closely associated with oncology—to eradicate HIV reservoirs.
The technique involves collecting T cells from HIV patients, growing them outside the body to expand their population, then infusing them back into the body. The team’s plan is to combine the cells with drugs that make latent HIV reservoirs visible to the immune system, so the T cells can find the virus and kill it. But first they had to show that the first part of the process is well tolerated by patients—and they did, with a new study published in the journal Molecular Therapy.
The trial involved six patients with HIV who were taking antiretroviral drug regimens that had reduced their viral loads to undetectable levels. Each patient received two infusions of HIV-specific T cells over two weeks.

The treatment was well tolerated, the UNC team reported. What’s more, the researchers were able to measure an increase in antiviral activity in two of the patients, which they were able to link to the T cells. The research was supported by the National Institutes of Health.
The trial didn’t show a decrease in the size of the latent reservoirs, likely because it wasn’t powered to do so: The UNC team didn’t treat the patients with latency-reversing drugs, and the dosages of T cells they infused were low. Furthermore, they didn’t employ strategies for expanding the population of HIV-fighting T cells once they were infused back into patients.
“This paves the way for the next step, which is to combine this immunotherapy approach with latency-reversal therapy in order to wake up the HIV out of its latent state, where it is invisible to the immune system, then clear it out with the immunotherapy,” said first author Julia Sung, M.D., assistant professor of medicine at UNC, in the statement.
T-cell therapies have generated a lot of enthusiasm in the cancer world, thanks largely to the recent FDA approvals of two such treatments for blood cancer, Novartis’ Kymriah and Gilead’s Yescarta. But early efforts to apply the technology to HIV failed to produce a therapeutic response.
The UNC researchers showed in previous studies that they could take cells from HIV-infected patients and use them to clear latent cells by exposing those cells to Zolinza, a chemotherapy drug that’s known to be able to reverse latency.
It’s one of several approaches being tested for eliminating HIV reservoirs. In April, a team at the Fred Hutchinson Cancer Research Center reported promising results from an animal trial involving stem cells that were edited to include a mutation in the gene CCR5, which is known to be involved in HIV resistance. When the cells were put back into macaques infected with simian/human immunodeficiency virus (SHIV), an illness that’s related to HIV, virus reservoirs shrank.
Teams from the Salk Institute and Temple University have used CRISPR gene editing in different ways to remove some latent HIV from cells and prevent what’s left from resurging at a later time.
UNC is now enrolling patients in a study that will combine Zolinza with their own HIV-specific T cells. The participants will receive 20 doses of chemotherapy and five infusions of T cells. The researchers hope to complete the study in 2021.

ResVax, NanoFlu Prospects Earn Novavax A Double Upgrade


Novavax, Inc. NVAX 8.84% has fallen 31 percent over the last six months, mirroring waning investor excitement over a coming pivotal trial. Amid the heavy sell-off, one analyst sees a buying opportunity.

The Analyst

JPMorgan analyst Eric Joseph upgraded Novavax from Underweight to Overweight and sees fair valuation between $2 and $2.25.

The Thesis

Novavax’s PREPARE Phase 3 trial is set to release pivotal data on ResVax in the first quarter. JPMorgan expects the immunization for infant RSV to yield positive results driving 50-100-percent-plus upside.
While a failure could drag the stock down 80 percent, Joseph said he considers such an outcome less likely. (See his track record here.)
“Looking beyond the Phase 3 readout, we believe positive PREPARE data would support broader development to additional at-risk populations and their inclusion in the model.”
If successful, ResVax would tap into a $650 million to $850 million opportunity in the U.S., by Joseph’s estimates.
The analyst projects a $200-million peak opportunity in NanoFlu, which is set to enter a Phase 2 study in the third quarter and release top-line data in the first. If successful, Novavax could pursue registration in the second half of next year.

Cantor Fitzgerald’s 7 Buys For 7 Biotechs


Cantor Fitzgerald has high hopes for patients with rare and orphan diseases.
“We believe that biotech has entered a golden age of innovation and productivity across many therapeutic areas,” the firm said in a Friday note. Cantor expanded its portfolio with seven new neuro-innovator and platform-enabled therapeutics companies.

The Ratings

Analysts Charles Duncan and Pete Stavropoulos initiated coverage on the following firms with Overweight ratings:
  • Adverum Biotechnologies Inc ADVM 2.61% with a $12 price target;
  • Cara Therapeutics Inc CARA 3.09% with a $27 target;
  • Catalyst Pharmaceuticals Inc CPRX 0.32% with an $8 target;
  • Cytokinetics, Inc. CYTK 4.29% with a $14 target;
  • electroCore, Inc ECOR 0.44% with a $30 target;
  • Kalvista Pharmaceuticals Inc KALV 20.67% with a $32 target; and
  • Zynerba Pharmaceuticals Inc ZYNE 5.74% with a $21 target.

The Thesis

The analysts expect continued momentum in innovation for the treatment of rare and orphan diseases, particularly since just 10 percent of the 7,000 identified rare diseases have approved therapies.
At the same time, “improved understanding of etiology allows for drug target identification; and a shifting therapeutic paradigm for orphan/rare disease is occurring where initial therapeutics consisting of plasma-derived products and biologics is now evolving to small-molecule drugs [with] improved outcomes and lower costs,” Duncan and Stavropoulos said in the initiation note.
The analysts consider Zynerba in particular a “deep value long” with upside north of 175 percent.
Zynerba will release data on its cannabinoid-based platform, which has garnered significant interest in the maturing cannabis sector, in the back half of 2019.
“We focus our valuation on FXS, where we are encouraged by the open-label long-term data, with meaningful and durable improvements that we see having predictive value for the pbo-controlled pivotal CONNECT-FX trial,” the analysts said. “On epilepsy indications, we await further data after a disappointment in focal epilepsy, but we note positive competitor results in childhood epilepsy, in addition to literature data, suggesting good outcomes in these trials.”
The other biotechs have similar near-term catalysts: Adverum’s Phase 1/2 fourth-quarter data release; Catalyst’s fourth-quarter PDUFA date; electroCore’s fourth-quarter trial launch; and Cytokinetics’ Phase 2 data release in the first half of 2019.
Kalvista is set to report Phase 2 data in the middle of 2019, and Cara plans to report Phase 3 results in the back half of the year.

Scilex Has Pricing for ZTlido, Commercial Launch of 1st Product, Available in Oct.


Scilex Pharmaceuticals Inc. (Scilex), a subsidiary of Sorrento Therapeutics, Inc. (NASDAQ: SRNE) (Sorrento), today announced that the Wholesale Acquisition Cost (WAC) for ZTlido (lidocaine topical system) 1.8% (ZTLIDO) is $8.98 per patch and is now listed in pricing compendia.
Scilex expects commercial availability of ZTlido through wholesale distribution in October 2018.
‘We are excited to bring our first commercial product to the market,’ said George Ng, President, Business, of Scilex. ‘With ZTlido, we are proud to offer a non-opioid alternative and option for patients with post-herpetic neuralgia.’
ZTLIDO is a topical product that uses an advanced adhesion technology providing more efficient lidocaine delivery than Lidoderm over a full 12 hours. Post-herpetic neuralgia (PHN), also referred to as post-shingles pain, is a frequent complication of shingles, a condition caused by the herpes zoster (HZ) virus, which afflicts an estimated 1 million people each year in the US.

J&J Ethicon Agrees To Sell Sterilization Unit for $2.7B


Ethicon Inc., a subsidiary of Johnson & Johnson, has accepted Fortive bid for its sterilization and disinfection products business.
In a securities filing Friday, Fortive said Ethicon agreed to its $2.7 billion offer for the unit on Sept. 20. The price tag is subject to adjustments based on the unit’s inventory book values at the time of closing and the amount of prepaid taxes.
Fortive said in the filing that regulators in the U.S., Germany and Brazil have signed off on the deal. Both sides still must apply for anti-trust clearance from authorities in Israel.
Either side has the right to terminate the deal if it has not been completed by April 5, 2019, the filing says.
Fortive, based in Everett, Wa., announced the offer in June, with an executive at the company saying then the Ethicon sterilization unit would boost its sales and position it in attractive markets.
The business produced about $775 million in sales last year, according to figures from Johnson & Johnson.
Shares of Fortive ticked down 0.4%, to $89.98, on Friday. Johnson & Johnson’s stock rose 0.6%, to $142.88.

Glaxo fails to warn of pandemic flu vax safety issue: BMJ


GlaxoSmithKline’s H1N1 swine flu vaccine Pandemrix made waves around 2010 after increased cases of narcolepsy emerged in Sweden and Finland among children who got it during the previous pandemic. But a recent report by The BMJ suggests greater safety problems with the vaccine, which neither GSK nor health authorities have made public.
After examining several GSK-made internal safety reports obtained through an ongoing lawsuit alleging that Pandemrix caused the sleep disorder, the medical journal found a large discrepancy in adverse event rates dated years back between Pandemrix and two other GSK pandemic vaccines. Pandemrix have not been available for several years now.
Specifically, by Dec. 2, 2009, for each million doses of vaccine administered, about 76 cases of serious adverse events were reported for people who got Pandemrix, while eight were for Arepanrix and another unadjuvanted vaccine combined. The pattern continued for the next eight reports seen by The BMJ, and by the end of March 2010, the rate for Pandemrix was 72, seven times that for Arepanrix and the third vaccine combined.
The journal cautions that the numbers themselves are not sufficient to draw any causal relationship. But what it finds more problematic is that neither GSK nor health authorities seemed to have made the information public.
“[They] raise fundamental questions about the transparency of information,” about when the public should be alarmed of possible harms of vaccines detected through pharmacovigilance, Peter Doshi, an associate editor of The BMJ, wrote in his report.
In response to a FierceVaccines request for comment, GSK said: “Throughout the development and introduction of the Pandemrix and Arepanrix vaccines GSK fulfilled all requirements established by the authorities for the monitoring and evaluation of safety data. During the pandemic, GSK conducted enhanced evaluation of safety data and supplied all safety data and the company’s assessment to EMA and other authorities, summaries of which were made available to the public weekly on the EMA website.”

The disparity in adverse events reported was “of such striking difference that any person contemplating taking the Pandemrix vaccine would be likely, if in receipt of this information, not to choose to have [it],” Gillian O’Connor, the solicitor representing an Irish woman who’s suing GSK and health agencies, wrote in an affidavit filed in court.
Both Pandemrix and Arepanrix contain an oil-in-water emulsion adjuvant called AS03, but different methods are used to prepare the hemagglutinins used in them.
Pandemrix’s EU approval, first granted on Sept. 25, 2009, along with Novartis’ Focetria and Baxter’s Celvapan, has expired in August 2015 as GSK didn’t apply for a renewal “due to lack of demand,” according to an EMA statement (PDF). Arepanrix was approved in Canada in October 2009 but wasn’t in EU until the next March, at the tail of the pandemic, and its marketing authorization was voluntarily withdrawn at the request of GSK in late 2010.

It was not clear how much the EMA knew about the safety profile of those vaccines. But a press release from the agency in July 2011 said after considering all available data, including analysis of safety surveillance data performed in several member states and case reports from across the EU, its Committee for Medicinal Products for Human Use “confirmed that overall the benefit-risk balance of Pandemrix remains positive.”
“While it might have been possible to estimate reporting rates based on usage data, which are difficult to obtain during a pandemic, EMA does not have a methodology to compare reporting rates between two products (note that the pandemic influenza pharmacovigilance updates included number of reports, not rates),” an EMA spokesperson said, as quoted by The BMJ.
Neither Pandemrix nor Arepanrix has ever been greenlighted in the U.S. Instead, the FDA waved through four nonadjuvanted H1N1 vaccines by CSL, GSK, Novartis and Sanofi Pasteur. In a response to the narcolepsy reports following immunization with Pandemrix, the CDC carried out a population-based study and found the FDA-approved 2009 H1N1 flu shots were not associated with an increased risk for the neurological disorder.