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Wednesday, December 12, 2018

FDA Expands Biologics, Biosims Action Plan, Especially for Diabetes Products


In July, the U.S. Food and Drug Administration (FDA) announced its Biosimilars Action Plan. At the same time, FDA Commissioner Scott Gottlieb harshly criticized the pharmaceutical industry and its tactics in delaying biosimilar competition.
Yesterday, the agency and Gottlieb doubled-down on the Action Plan and added to it. The FDA released two new draft Q&A guidance documents on biosimilar development and two final guidance documents on the same topics, as well as a proposed amendment to the definition of a biological product.

Regulatory Focus notes, “The efforts are part of FDA’s decade-long work to begin, starting in March 2020, transitioning the approved marketing applications for a subset of biological products, such as insulin and human growth hormone—which were previously approved as drugs under section 505 of the FD&C Act—to be deemed to be biologics licenses.”
What this comes down to is specific biologics will be pulled from the FDA’s Orange Book on March 23, 2020 and placed into the Purple Book. All subsequent applicants that follow on won’t be able to depend on these New Drug Applications (NDAs) for approval but will have to follow a biosimilar pathway for approval.
Speaking at the CMS/FDA Summit in Washington, D.C. yesterday, Gottlieb indicated that the goal of the new policies and revised guidance were two-fold: to prevent companies from gaming the exclusivity provisions to fend off biosimilar entry into the market, and to ensure that when drugs transition into biologics, they don’t receive extra exclusivities they aren’t entitled to.
Gottlieb also said that the agency is issuing notice of how, if requested, it will review trial protocols submitted by biosimilar applicants to determine whether the protocols have comparable safety protections compared to those in the risk evaluation and mitigation strategy (REMS) for the reference drug they’re copycatting.
“If requested,” Gottlieb said, “the FDA will issue a letter to the reference product holder informing them that comparable protections exist, and that the FDA won’t consider it to be a violation of the branded drug company’s REMS to provide the biosimilar sponsor with a sufficient quantity of the reference product to perform testing necessary to support its biosimilar application.”
In his statements, Gottlieb noted, “There are currently no approved insulin products that can be substituted at the pharmacy level. One reason is that it was hard to bring a substitutable generic insulin to the market under the conventional drug pathway. The biosimilar pathway should make this kind of competition more accessible. Once an interchangeable insulin product is approved and available on the market, it can then be substituted for the reference product at the pharmacy, potentially leading to increased access and significantly lower costs for patients.”
Part of his talk was to strongly criticize the industry over the high price of insulin for what were essentially decades-old drugs. Part of the new guidance is designed to stimulate competition in the insulin market and bring down their costs. How this will be received by an industry that is already struggling with downward pressure on diabetes medications remains to be seen.
“We’ve heard frequent reports of patients rationing insulin, and in some cases dying because they can’t afford the injections they need to survive,” Gottlieb stated. “These tragic stories aren’t isolated occurrences. And they’re not acceptable for a drug that’s nearly a century old.”
Three companies control 90 percent of the insulin market: Eli Lilly, Novo Nordisk and Sanofi Aventis. Although that relative lack of competition is partly behind the pricing, another part has to do with the way insulin products have been regulated.
By most definitions, insulins are biological drugs made from living cells. But they’re not regulated the way biologics are, nor are copycat or generic versions, the so-called “follow-on insulins,” or, in other words, biosimilars. But that will change in 2020 when insulins will be regulated as biologics.

Zoetis increases quarterly dividend 30%


Zoetis declared aQ1 dividend of 16.4c per share, an increase of 30% from the quarterly dividend rate paid in 2018. The dividend is to be paid on Friday, March 1, 2019, to holders of record of the company’s common stock on Friday, January 18, 2019.
https://thefly.com/landingPageNews.php?id=2836303

Applied Genetic gene therapy fails in study; Biogen collaboration terminated


Thinly traded Applied Genetic Technologies (NASDAQ:AGTC) is set for a significant down move after announcing unsuccessful results from a Phase 1/2 clinical trial assessing gene therapy rAAV2tYF-CB-hRS1 in patients with an inherited retinal disorder called X-linked retinoschisis (XLRS). Six-month data failed to show any signs of clinical activity.
The lack of progress has prompted Biogen (NASDAQ:BIIB) to terminate its collaboration agreement with AGTC in XLRS and three other discovery programs. All rights will revert back to AGTC.
Shares, currently halted, will resume trading at 4:30 pm ET.

BioScrip initiated at Canaccord


BioScrip initiated with a Buy at Canaccord. Canaccord analyst Richard Close initiated BioScrip with a Buy rating and $5 price target. In a research note to investors, Close says that he expects BioScrip to increasingly gain investor attention as the turnaround initiated in 2H16 continues. For the first time in its history, Close believes BioScrip is on a clear path to double-digit EBITDA margin in 2019 and says shares can continue to move higher as the turnaround nears completion, management initiates on new growth and margin expansion strategies, and the company’s high leverage and debt structure is rightsized in the coming year.

Sorrento Therapeutics has multiple catalysts in 2019, says H.C. Wainwright


2019 should represent a turning point for Sorrento Therapeutics, H.C. Wainwright analyst Raghuram Selvaraju tells investors in a research note. The analyst believes the company is in position to report “multiple value-driving clinical data catalysts” over the course of 2019, both with its pain management portfolio and its cancer immunotherapy candidates. He thinks the interest in anti-CD38 CAR-T approaches has only increased following the recently concluded American Society for Hematology annual meeting. Further, Sorrento’s recent financing transactions “provide a pathway to sustainability,” adds Selvaraju. He reiterates a Buy rating on the shares with a $40 price target.

Array BioPharma price target raised to $26 at Stifel after physician survey


After surveying 45 U.S. physicians that treat metastatic melanoma patients, Stifel analyst Stephen Willey said that the survey results demonstrate a “highly-favorable competitive perception” of the Phase 3 COLUMBUS data and estimated BRAF/MEK inhibitor utilization rates. Given the survey results, he is increasing his Braftovi/Mektovi peak market share and sales estimates and raised his price target on Array Biopharma shares to $26 from $24. Willey keeps a Buy rating on Array.

Express Scripts, Walmart sign three-year agreement


Walmart (WMT) and Express Scripts (ESRX) announced an extension to the companies’ existing network agreement to provide access to Walmart’s prescription services for Express Scripts clients’ covered members. The companies also made a commitment to deliver additional affordable prescription solutions to millions of underinsured and uninsured Americans. As part of the ongoing relationship, Walmart is partnering with Express Scripts’ to access their unique pricing on dozens of brand-name prescription drugs, and create additional value for its customers. As one example, Express Scripts has introduced a novel solution – InsideRx — to provide discounts, on average 40%, to uninsured Americans on a growing number of important brand-name prescription drugs. Express Scripts works with major drug manufacturers to lower the cost of high-priced medications and will continue to expand the program and deliver savings on additional medications for the whole family.