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Thursday, January 10, 2019

Weight Watchers’ New Name: Why Simplicity Isn’t So Simple


Is Weight Watchers’ name change the right brand strategy? On the heels of Weight Watchers’ recent rebrand, Adweek published a scathing critique, calling the rebrand “directionless and forced.” The renaming from Weight Watchers to WW got the most criticism. Now, on one hand, Weight Watchers had the right idea. Like Dunkin’ Donuts’ recent simplification to Dunkin’, these household brand names underwent brand-surgery to get leaner.
Weight Watchers strategized that a new name would help them adapt to a cultural shift which preaches wellness instead of weight loss. They created a new tagline, “Wellness That Works,” and a new name, WW, to support the line. Their old name, Weight Watchers, with its two long words and lots of letters, makes it easy to understand why they wanted to thin down. Pun intended.
But branding is all about noticing. And as brand strategists, we train ourselves to look at the finer details in language and images.
When Weight Watchers made this decision, it seems they decided to overlook the syllable count of the new name. WW has twice as many syllables as the three-syllable name, Weight Watchers. And while Weight Watchers is quick and easy to say, WW is a tongue twister — saying it is fatiguing. Remember when people used to say WWW for the World Wide Web? That was a chore, which got simplified in the language down to “dub dub dub.” Well, WW is just one “W” away from that nine-syllable tongue twister.
Simplifying is a high priority in branding because simple is just better. Customers want simplicity, and brand strategists are always trying to remove the complexities of how a brand communicates. Competition for attention is fierce. We don’t want to make customers work. If we complicate messages, we lose customers.
But creating simplicity in branding is quite complicated. Countless strategic decisions go into the process and it’s easy to get caught up in bold new ideas and lose focus on the simple principles. At the very least, names should be snappy and easy to say. To that point, WW looks simpler, but unfortunately it falls apart when spoken. In branding, this is called mouthfeel — the way a name feels when you say it, or the level of satisfaction when pronounced.
One of the most influential authors in branding, Marty Neumeier, distilled naming best practices down to some simple criteria in his book, The Brand Gap. According to him, a great name should be differentiated, brief (under four syllables), appropriate to its business sector, easy to spell, satisfying to pronounce, legally defensible, and suitable for “brand play” (i.e., lending itself to creative storytelling). A brand that doesn’t vet its name rigorously against these principles is in danger of ending up with naming issues.
One other important element that was discarded was brand equity. Brand names like Band-Aid, Xerox, Kleenex, FedEx and, yes, Weight Watchers, are household names that dominate their sectors because they dominate the language. It’s a phenomenon and there’s a name for it: eponyms. Have a cut? Put on a Band-Aid. Need a copy? Xerox it. Have to blow your nose? Get a Kleenex. Deliver a package overnight, FedEx it. Want to lose weight? Go on Weight Watchers.
Slimming down a long or limiting name is worth considering, but when you have so much brand equity that your name is part of the language you must be careful. For Dunkin’, dropping the “Donuts” makes more sense. Their renaming maintains the most important part of the original name, Dunkin’, and gets rid of the less important part, the descriptor, Donuts, so the brand equity is preserved. And with the “America Runs on Dunkin’” campaign, which has run for over a decade, the public is well-accustomed to the shortened version.
Names that are too descriptive can hinder a brand’s ability to expand into other business areas. Dunkin’s strategic decision to get rid of the descriptive part of its name gives it the flexibility to take its business into different areas.
In my opinion, for WW, a stronger strategy would have been to find a way to maintain the name equity that was owned. By finding a way to strike the negative part of the name — the word “weight” — and maintain the positive part of the name — the word “watchers” — would have preserved its name equity and given the customer something to latch onto.
So, the jury is out, and the jury is the customer. We’ll see over time how they respond. And as Mr. Neumeier said in his book, “The right name can be a brand’s most valuable asset. The wrong name can cost billions.”

Veracyte, J&J to collaborate on lung cancer tests


Veracyte said today that it has struck a collaboration agreement with Johnson & Johnson Innovation to focus on developing Veracyte’s lung cancer tests.
Under the terms of the deal, Veracyte will join J&J’s Lung Cancer Initiative, which aims to prevent, diagnose and treat, and cure lung cancer. The partners will combine study cohorts, including a J&J cohort of around 5,000 patients with multiple years of clinical outcome data and some patients who were enrolled in a global National Cancer Institute-sponsored clinical trials. The companies will also collaborate on enrolling new cohorts of patients. Veracyte will contribute bronchial brushing and nasal swab samples from its biorepository and will perform whole-transcriptome sequencing on the entire cohort.
Veracyte will use the data to further develop two diagnostic tests: the second generation of its Percepta genomic classifier test, which is used in conjunction with bronchoscopy to rule out cancer in lung nodules; and a nasal swab test that will use RNA sequencing to identify lung cancer. J&J will be able to use the data in its drug development programs.
“Our goal is to advance the development and commercialization of novel diagnostic tests to detect lung cancer at its early stages when this disease is most treatable and where more lives can be saved,” Veracyte CEO Bonnie Anderson said during a conference call with investors to discuss the collaboration.
Johnson and Johnson Innovation is the venture capital arm of J&J, and as part of the deal, J&J will pay Veracyte $5 million upfront and up to $15 million in milestone payments. Some of those milestone payments will be associated with the commercialization and reimbursement of the second-generation Percepta test while other milestones will be tied to the longer-term development of the nasal swab test, Anderson said.
In addition, Anderson also estimated that the deal would provide Veracyte with around $30 million in non-monetary value in the form of access to clinical cohorts that Veracyte would otherwise have to spend millions of dollars to establish over several years.
J&J will have the potential to receive 1 percent in royalty payments from sales of Veracyte’s second-generation Percepta test and a “low single-digit percent” for the nasal swab test, Anderson said.
The collaboration will also expand Veracyte’s market opportunity to $30 billion to $40 billion, she said. Currently, the market opportunity just for Percepta is around $500 million, Anderson added, since it is limited to patients who have already had an imaging test that has found a nodule but that can’t be classified as low or high risk. While the second generation of Percepta may expand that market slightly, the real opportunity will be the nasal swab test, Anderson said, which will “open up the clinical care continuum to be able to address earlier-stage detection, [and] guide stratification at perhaps the stage of nodule identification.” It also opens up the possibility of screening such that “we could potentially test patients and try to get them into a lung cancer screening program — those with a higher risk of lung cancer,” she added.
Veracyte’s Percepta test is used in combination with bronchoscopy to help rule out cancer in suspicious-looking lung nodules. Lung cancer is difficult to diagnose early because noninvasive tests like bronchoscopy and imaging have high false positive rates and obtaining a biopsy of lung nodules for diagnostic testing is invasive, costly, and risky for patients. According to the clinical validation study for Percepta, combining the genomic classifier with bronchoscopy resulted in a sensitivity of 97 percent, Anderson said.
As a result of the J&J collaboration, she noted that the second-generation version, which will be based on RNA sequencing, would be launched in the first half of 2019, an earlier timeline than previously anticipated.
Anderson said that in early 2019 the company would also present early data from its nasal swab test with additional data and details on commercialization coming in the next 18 to 24 months. The goal for the nasal swab test is to use Veracyte’s RNA-seq and machine learning platform to detect lung cancer from a nasal swab, which would be even less invasive than a bronchial swab. Last year, Veracyte and Boston University researchers published initial proof-of-concept data showing that there were gene expression differences in nasal swab samples between individuals with and without lung cancer.
Ultimately, the goal for the nasal swab test would be to enable lung cancer detection at earlier and earlier stages, including identifying patients “with precancerous conditions,” Anderson said.
She noted that while a number of companies are developing liquid biopsy tests for early lung cancer detection, “evidence is lacking on how early liquid biopsy can detect cancer in the blood. In contrast, airway genomic alterations have already been validated in the bronchial airway and have been shown to be feasible in the nasal airway, giving us strong confidence in our approach and plans.”
A nasal swab test would also be amenable to being performed in a variety of settings, including a patient’s doctor’s office or even a pharmacy.
The collaboration with J&J is expected to also accelerate the development of Veracyte’s biorepository of samples that are paired with transcriptome sequencing data. As Anderson previously mentioned, that biorepository and sequencing data will serve as a valuable tool to drive additional deals with pharmaceutical companies looking to develop precision medicine therapies.

AgeX Publishes Data on Cell Therapy for Type 2 Diabetes and Obesity


AgeX Therapeutics, Inc. (NYSE American: AGE) announced today the publication of data relating to its cell therapy product candidate AgeX-BAT1 for Type II diabetes and obesity in the peer-reviewed scientific journal Stem Cell Research & Therapy. Scientists now realize that the activity of brown adipose tissue (BAT), also known as “brown” or “good” fat, is markedly lost with age. This loss may contribute to metabolic disturbances seen in Type II diabetes and obesity as well as a heightened cardiovascular risk. AgeX-BAT1 is comprised of regenerative cells capable of becoming BAT and is intended to return BAT levels back to those found in young adults. AgeX is targeting Type II diabetes and obesity as they are areas of high unmet medical need and present multi-billion-dollar market opportunities.
As described in the paper, “Clonal Derivation of White and Brown Adipocyte Progenitor Cell Lines from Human Pluripotent Stem Cells,” two AgeX-BAT1 cell lines, designated NP88 and NP110, were selected for detailed characterization. The data demonstrate AgeX’s PureStem®cell therapy manufacturing platform was successful in generating highly purified cells with precise anatomical identity, and most importantly, capable of potently expressing definitive markers of BAT cells, including active adipokines such as adiponectin. Adiponectin is reported to have beneficial effects in patients with age-related metabolic and cardiovascular diseases. In addition, the paper provides evidence that AgeX’s PureStem® technology allows for the reliable re-derivation of scalable lots of desired cells.
“In keeping with AgeX’s mandate to use regenerative biology to reverse the degenerative aspects of aging, AgeX-BAT1 will address one of the insidious age-related metabolic imbalances responsible for age-related weight gain as well as other serious age-related conditions such as Type II diabetes and its ensuing cardiovascular risk,” said Michael D. West, Ph.D., Founder and CEO of AgeX, and lead author of the published study. “It is estimated that 30 million U.S. adults have diabetes, the overwhelming majority of the cases being Type II, and that number is rapidly on the rise as a result of the aging demographic. AgeX-BAT1 could potentially provide an important and novel therapeutic strategy for managing the epidemic of metabolic imbalances such as Type II diabetes in aging.”
“Few medical conditions are as prevalent as age-related metabolic imbalances, which carry along with them serious risks, including diabetes, cardiovascular disease, blindness, amputations, and cancer,” said Dr. Annalisa Jenkins, M.B.B.S., F.R.C.P., a member of the AgeX Board of Directors. “Whilst dieting and exercise are beneficial, most people find them difficult to adhere to. To meet this high unmet medical need, we need new approaches, such as AgeX-BAT1.”
Dr. West will discuss the paper as part of his presentation at Biotech Showcase, being held concurrently with the 2019 J.P. Morgan Healthcare Conference in San Francisco. Details of Dr. West’s presentation follow:
Date: Wednesday, January 9
Time: 9:00AM PST
Track: Yosemite-A (Ballroom Level)
Venue: Hilton San Francisco Union Square, 333 O’Farrell Street, San Francisco, Calif.
Authors on the paper are Michael West, Dana Larocca, Jie Li, Jianjie Jiang, Pamela Sim, Ivan Labat, and Hal Sternberg of AgeX; Ching-Fang Chang and Andreas Stahl of the University of California, Berkeley; Karen B. Chapman of Johns Hopkins University; Kari E. Wong of Metabolon, Inc.; James Nicoll and Michael J. Van Kanegan of Zen-BIO, Inc.; Aubrey de Grey of AgeX and the SENS Research Foundation; and Igor Nasonkin of BioTime, Inc.
The paper is available online, and additional information on AgeX-BAT1, including an introductory video, is available on AgeX’s website at www.agexinc.com.

Will Pfizer Join The Buying Spree With This Small Biotech Stock?


Amarin (AMRN) stock bounded to a month high Thursday on a report that Dow Jones component Pfizer (PFE) could be interested in acquiring it. But Pfizer stock fell.
StreetInsider.com reported Thursday that Pfizer could put up a bid on AmarinAmarin makes Vascepa, a treatment to help lower triglycerides in adults. Pfizer has a cardiovascular and metabolic diseases unit that focuses, in part, on heart failure and related problems.

In midday trading on the stock market today, Amarin shares jumped 16.6%, near 17.50. The stock flew as much as 19.2% in above-average volume. Pfizer stock dropped 2.4% to 42.30.
Deals in the biopharma space have kicked up over the last month. The biggest transaction could see Bristol-Myers Squibb (BMY) take over Celgene (CELG) for $74 billion. Also this week, Eli Lilly(LLY) said it would spend $8 billion to acquire Loxo Oncology (LOXO).
Earlier Thursday, analysts speculated that Biogen (BIIB) could also become acquisitive in 2019. Biogen has an estimated $17 billion to $18 billion to spend in a takeover, one analyst said.

Banner Gets FDA Tentative OK for MS generic BAFIERTAM


Banner Life Sciences LLC (the Company or Banner), a privately held specialty pharmaceutical company, announced that the U.S. Food and Drug Administration (FDA) granted tentative approval on November 16, 2018 of the Company’s New Drug Application (NDA 505(b)(2)) for BAFIERTAM™, a novel fumarate bioequivalent alternative to a prodrug of BAFIERTAM, Tecfidera® (dimethyl fumarate) of Biogen, Inc., as a treatment for patients with relapsing forms of multiple sclerosis (see also Banner Life Sciences LLC).
According to the letter, BAFIERTAM meets the required bioequivalence, safety, efficacy and quality standards for approval. At present, full FDA approval is expected following the expiration of U.S. Patent Number 7,619,001 (‘001) on June 20, 2020 and anticipated ahead of generic erosion. Approval may be accelerated based on the outcome of pending litigation with Biogen regarding this patent.
In September of 2018, Biogen Inc., dismissed its lawsuit against Banner in which Biogen had claimed BAFIERTAM would infringe on Tecfidera patents 7,320,999 and 8,399,514, thus granting Banner freedom to operate after the expiration of the ‘001 patent.

Sen. Sanders, Rep. Cummings introduce bill to lower U.S. drug prices


U.S. Senator Bernie Sanders and Representative Elijah Cummings introduced legislation on Thursday aimed at lowering the cost of prescription drugs for American consumers, critiquing President Donald Trump administration’s efforts to curb medicine prices.

Democrats have been critical of efforts by the Trump administration to bring down drug prices after Trump, a Republican, promised to do so during his 2016 campaign and since being elected. They have said administration proposals let big drugmakers off the hook and did not do enough to help Americans.
“I say to the president: No more talk, no more tweet. No more commotion, emotion and motion and no results,” Democratic Representative Elijah Cummings said at a news conference on Thursday. Cummings became chairman of the House Oversight Committee after Democrats regained control of the chamber this month.
“Americans want government to help them. And this is something you can do to help all Americans,” Cummings said, addressing Trump.
The proposed legislation, which has several co-sponsors among Democrats in the House of Representatives and in the Republican-led Senate, is comprised of three bills that aim to curb drug costs.
The U.S. Department of Health and Human Services last year rolled out a plan to lower drug prices and has introduced several modest proposals to curb medicine costs, but Trump has expressed frustration over continued price hikes by drugmakers.
Several pharmaceutical companies temporarily froze prices on select drugs last year. But drugmakers raised prices on more than 250 prescription drugs, including the world’s top-selling medicine, AbbVie Inc’s Humira, to begin 2019.
In response to increased pressure, however, most drugmakers ended their practice of annual double-digit percentage increases of list prices, keeping most under 10 percent.
The Sanders and Cummings bill would peg U.S. prescription drug prices to the median price from five countries – Canada, Britain, France, Germany and Japan – where drug costs are typically far lower because of government price controls.
That is similar to a proposal the Trump administration said it plans to put forth in the coming months that would create an “international pricing index” to help the cost of prescription drugs to Medicare more closely align with other countries. The government health insurance program covers more than 40 million older and disabled Americans.
The bill would also allow the U.S. Secretary for Health and Human Services (HHS) to negotiate prices in Medicare Part D, a program that helps Medicare beneficiaries pay for self-administered medicines like those purchased at drugstores.
The proposal would also end a ban that keeps Americans from buying medicines at lower prices from Canada and other countries.
Drugmakers opposed Sanders’ and Cummings’ legislation, arguing that it was not the right way to address prescription drug affordability. Pharmaceutical companies have long argued that price controls in the United States would stifle innovation and that importing drugs from other countries is unsafe.
“The proposals from Senator Sanders would wreak havoc on the U.S. health care system,” the Pharmaceutical Research and Manufacturers of America (PhRMA), the industry’s top U.S. lobbying group, said in a statement.
“They would interfere with patient access to medicine, while also undermining the U.S. intellectual property system, replicating the flawed policies of foreign governments and circumventing the U.S. Food and Drug Administration’s robust safety standards,” the group said.
They also say that rebates and discounts they must pay to insurers and pharmacy benefit managers (PBMs) to ensure patient access to their products – and that are not passed on to consumers – forces them to keep list prices high. Trump administration proposals have singled out so-called middlemen like PBMs as a big part of the problem.
“While Americans cannot afford the prescription drugs they desperately need, the pharmaceutical industry year after year makes huge profits and pays an outrageous level of compensation to their CEOs,” Sanders, an Independent who caucuses with Democrats, said Thursday at a news conference.
Health and Human Services Secretary Alex Azar has been defending the administration’s efforts to lower drug prices.
“(Trump) and I will not stop our work until list prices go down,” Azar wrote on Twitter on Wednesday.

PLx Pharma gains


Thinly traded nano cap PLx Pharma (PLXP +25.5%) is up almost a 4x surge in volume, albeit on turnover of only 113K shares, adding to a rally that began on December 27, 2018. The stock has quadrupled since that day’s intrasession low of $1.00.
During the company’s Q3 earnings call on November 9, CEO Natasha Giordano reported that the company had confirmed a new supplier for a key ingredient in lead product Vazalore, a liquid-filled aspirin capsule. The manufacturing of development-scale batches and the preparation of an FDA pre-submission briefing packet should be happening this quarter.
A Type C meeting with the FDA should happen next quarter, followed by the completion of registration batches in Q3 and an sNDA submission in Q4. If all goes well, market launch will commence mid-2020.
On the working capital front, it had $16.5M in cash and equivalents at the end of Q3 2018 while operations consumed $7.2M during the first three quarters of the year.