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Monday, February 4, 2019

Ligand Invests in Dianomi Therapeutics

Ligand Pharmaceuticals Incorporated (NASDAQ: LGND) announces closing an investment in Dianomi Therapeutics, Inc., a biopharmaceutical company focused on improving the delivery and efficacy of large and small molecules in the treatment of a variety of diseases and on therapies for inflammatory diseases, such as osteoarthritis and pain. Ligand paid a total of $3 million to Dianomi in exchange for 1) a tiered royalty of two or three percent based on level of net sales for the first five products to be approved using Dianomi’s patented Mineral Coated Microparticle (MCM) technology and 2) a loan convertible into $1 million of equity at the next qualified financing. Ligand will provide technical and scientific advisory assistance to Dianomi for one year. Ligand will not incur any expenses to develop or commercialize any MCM programs.
“We are pleased to invest in Dianomi as the company works to develop therapeutics using its microparticle technology. MCM has a broad range of applicability as well as the potential to improve and extend many of the therapeutic benefits of both novel and existing drugs, similar to Ligand’s Captisol technology. This investment helps fund a promising company and will provide potential royalties to Ligand on products that could complete development in the next several years and generate revenue into the late 2030s,” said John Higgins, Chief Executive Officer of Ligand. “Our Shots-on-Goal business model is focused on assembling a large and diversified portfolio of royalty contracts, and this transaction is an example of the multiple investment approaches we are pursuing to add programs to our portfolio.”
The MCM technology is a patented formulation technology designed to improve dosing and patient compliance, safety and efficacy and/or extended product life of biologics and small molecules. Traditional drug delivery systems can often deliver biologics but struggle with maintaining protein activity during treatment. The MCM technology mimics the ability of human bones and teeth to store and protect biologics, and provides greatly improved, sustained release delivery of active biologics. MCM was developed in the laboratory of William Murphy, PhD, Professor of Biomedical Engineering at the University of Wisconsin, and was patented under the Wisconsin Alumni Research Foundation (WARF) with issued patent coverage through 2037. Dianomi’s initial focus will be on creating novel formulations of existing drugs in the osteoarthritis and pain space.

Gilead, Struggling to Revamp Sales, Projects Another Annual Sales Decline

Gilead Sciences Inc. (GILD) expects another sales decline this year, which would mark the fourth consecutive year of falling sales.
The Foster City, Calif., company forecast sales in 2019 of $21.3 billion to $21.8 billion, compared with analysts’ projected $21.83 billion, according to FactSet data.
In 2018, Gilead reported $22.13 billion in sales.
Gilead has been trying to offset lower sales of hepatitis C drugs that drove an earlier sales surge. The company, which has a strong HIV/AIDS franchise, paid about $11 billion in 2017 to buy one of one of the pioneering companies in a type of cancer treatment known as CAR-T that uses patients’ immune cells to fight cancer.
But sales of its CAR-T therapy Yescarta have been meager, reaching $264 million in 2018, below analysts’ projected $271 million.
Daniel O’Day, who most recently ran Roche Holding AG’s pharmaceuticals group, is slated to take over as Gilead’s CEO next month.
Overall, Gilead swung to a fourth-quarter profit of $3 million from a year-earlier loss of $3.87 billion, or $2.96 a share, driven by charges tied to the U.S. tax overhaul. On an adjusted basis, profit fell to $1.44 a share from $1.78 a share a year earlier.
Revenue fell to $5.8 billion in the quarter from $5.95 billion a year earlier.
Analysts surveyed by FactSet had projected earnings of $1.70 a share on $5.52 billion in sales.
Chronic hepatitis C products brought in $738 million in the fourth-quarter, down from $1.5 billion a year earlier.

Abuse-Deterrent OxyContin ‘Tied to Spike in Hepatitis C’

The introduction of abuse-deterrent OxyContin in 2010 may have played a key role in the rapid increase in hepatitis C infections because some drug abusers switched from the prescription opioid to injectable heroin, new research suggests
While hepatitis C infection rates increased broadly across the United States in the years after reformulated OxyContin became available, investigators found that states with above-average rates of OxyContin misuse prior to the reformulation saw hepatitis C infections increase three times as fast as in other states.
The results suggest efforts to deter misuse of opioids can have “unintended, long-term public health consequences,” David Powell, lead investigator and senior economist at RAND Corporation, told Medscape Medical News.
“Policies that limit the supply of opioids are a great idea but they may cause more problems than they actually solve. Supply-side interventions, which is kind of how we are currently attacking the opioid crisis, may have limited impact when you have a readily available substitute like heroin out there,” Powell added.
The study was published online February 4 in the journal Health Affairs.

“Alarming” Increase

In the United States, acute new hepatitis C infections declined during the 1990s, plateaued starting around 2003, but have been rising at an “alarming” rate since 2010, the authors point out.
Prior studies suggest abuse-deterrent OxyContin may have led some nonmedical users of the drug to switch to injectable heroin, which then led to a sharp increase in heroin overdoses after 2010.
Because injection drug use is the predominant risk factor for hepatitis C, Powell and colleagues sought to determine whether the opioid epidemic might be one driver of the recent rise in new infections.
They examined rates of hepatitis C infections in each state from 2004 to 2015, examining differences between states based on the level of misuse of the drug before the reformulation occurred.
Results showed that states with above-median OxyContin misuse before the reformulation had a 222% increase in hepatitis C infections in the post-reformulation period, while states with below-median misuse of OxyContin had a 75% increase in hepatitis C infections over the same period.
Before the reformulation, there was almost no difference in hepatitis C infection rates across the two groups of states. The rise in hepatitis C infection rates was not associated with initial rates of abuse of other pain relievers, which suggests that the source of the differential rise in hepatitis C infection rates was unique to reformulated OxyContin, the authors say.
“It is important that strategies that limit the supply of abusable prescription opioids are paired with polices to ease the harms associated with switching to illicit drugs, such as improved access to drug treatment and increased efforts to identify and treat diseases associated with injection drug use,” study co-author Rosalie Liccardo Pacula, co-director of the RAND Opioid Policy Tools and Information Center and the RAND Drug Policy Research Center, said in a news release.

Interpret With Caution

Reached for comment on the study, David Murray, PhD, senior fellow at the Hudson Institute, cautions against concluding that reformulation of OxyContin alone is to blame for the rise in hepatitis C infections.
“The issue is very complicated and teasing out what exactly the abuse-resistant formulary did against the backdrop of several major policy changes is very difficult,” he noted in an interview with Medscape Medical News. “You will find a correlation, obviously, with an opioid crisis surging forward and increased injection drug use and therefore exposure to hepatitis C. The linkage to reformulation of Oxycontin, however, is a little weaker,” said Murray.
“There is no clear signal that reformulation was sufficient to drive hepatitis C when you consider the policy changes happening at the time and the stunning rise in heroin availability and use itself. Reformulation of OxyContin is a factor, but it is not the factor when you consider all the other contributing factors. That is a bridge too far in my sense,” Murray added.
Support for the study was provided by the National Institutes on Drug Abuse. The authors have disclosed no relevant financial relationships. Murray served as chief scientist at the Office of National Drug Control Policy (ONDCP) from 2006 to 2009 and as associate deputy for supply reduction in the ONDCP until 2014.
Health Aff. Published online February 4, 2019. Abstract

Switching Medicare Patients With T2D to Older Insulins Could Slash Costs

Target Audience and Goal Statement: Endocrinologists, cardiologists, nephrologists, and primary care physicians
The goal was to evaluate the association between implementation of a health plan–based intervention of switching patients from analogue to human insulin and glycemic control.
Questions Addressed:
  • Is a health plan program that encourages patients to switch from analogue to human insulins associated with a change in glycemic control among older adults with type 2 diabetes?
  • Can patients and insurers save money by switching from analogues to human insulins?
Synopsis and Perspective:
Classical paradigms of type 1 and 2 diabetes – diseases that contributed to the 382% increasefrom 1988 to 2014 in diabetes diagnosed in the U.S. – are no longer accurate. The diseases are heterogeneous in terms of clinical presentation and can occur in children and adults. At least 9.4% of all Americans have diabetes, and nearly 31% of adults with diabetes (≥18 years old) use insulin, either alone or in combination with pills.
Insulin helps blood glucose levels from rising too high (i.e., hyperglycemia). Insulins are categorized by differences in onset of action, how long it takes to achieve maximum impact, concentration, and route of delivery.
Currently, many Americans with diabetes use insulin analogues (rapid-acting, short-acting, intermediate-acting, and long-acting) to efficiently, conveniently, and safely control blood glucose levels. Prior studies have also shown that select analogues provided better coverage of the postprandial glucose surge compared with human insulin.
Synthetic human insulins come in fast-acting (regular) and intermediate-acting (neutral protamine Hagedorn [NPH]) formats. Additionally, premixed, clinically equivalent human insulin includes the fixed 70/30 ratio premix recombinant human insulin formulation, which can be made up of insulin isophane and regular insulin. According to the Diabetes Teaching Center at the University of California, San Francisco, “regular human insulin has undesirable features, such as a delayed onset of action, variable peak, and duration of action when it is injected under the skin.”
NPH human insulin also has undesirable features such as a suspension of crystals differing in size, which may result in unpredictable absorption, translating into more frequent low and high blood sugars.
Current debates around human insulins and analogues mainly revolve around the point that the latter drugs are no more effective than human insulins, but are more expensive. In the last 10 years, insulin prices have tripled in the U.S., while out-of-pocket costs per prescription doubled. Medicare’s outpatient prescription drug program (Part D) spent more than $4 billion on one long-acting insulin analogue in 2016 alone.
“A vial containing 1,000 U of NPH or regular human insulin can be purchased for $25, whereas the retail price for a vial of analogue insulin ranges between $178 and $320,” according to one report. Human insulin, when used effectively, may also be a viable initial treatment option for many patients with type 2 diabetes.
Because of the cost implications, one strategy may be to switch patients with type 2 diabetes from analogues to human insulin, and such a strategy formed the basis for the current study by Jing Luo, MD, MPH, of Brigham and Women’s Hospital and Harvard Medical School in Boston, and colleagues.
Beginning in 2015, a health plan embarked on an intervention in four states (California, Arizona, Nevada, and Virginia) to shift Medicare beneficiaries with diabetes from insulin analogues to human insulin. Comparisons were also made between 983 participants who did not make the switch and 983 participants who did. The switching protocol involved moving from basal and/or prandial insulins to premixed human 70/30 or NPH insulin.
The researchers reported that 14,635 health plan members (mean [SD] age: 72.5 [9.8] years; 51% women; 93% with type 2 diabetes) filled 221,886 insulin prescriptions over 3 years.
The primary outcome was the change in mean hemoglobin glycated hemoglobin (HbA1c) levels estimated over three 12-month periods:
  • Pre-intervention (baseline) in 2014
  • Intervention in 2015
  • Post-intervention in 2016
Secondary outcomes were the rates of serious hypoglycemia or hyperglycemia.
Prior to the intervention, the mean HbA1c was 8.46% (95% CI 8.40%-8.52%). The American Diabetes Association suggests an HbA1c level of less than 7% for most non-pregnant adults with diabetes. Prior to the intervention switch in the study, HbA1c fell by 0.02% per month: At the beginning of the intervention, HbA1c levels rose by 0.14%, but at study completion, no significant differences were seen in HbA1c changes among all study participants or in the subgroup who made the switch (compared with the 12-month intervention period).
Similarly, there were no significant differences in serious hypoglycemic or serious hyperglycemic events noted among patients who switched medications, the researcher noted.
While the use of insulin analogues dropped from 89% to 30% when comparing the baseline through 2016 time frame, the use of human insulin increased from 11% to 70% during the same period.
Study limitations, Luo and co-authors said, included possible residual confounding and time-related biases and inability to detect small differences in the rates of minor hypoglycemia episodes or nocturnal hypoglycemic events because the outcome definitions relied on claims, and the fact that the results may not be readily generalizable to other healthcare settings with less intensive pharmacy-level support for chronic disease management.
Source Reference: JAMAJan. 29, 2019; 321(4): 374-384
Study Highlights: Explanation of Findings
Among more than 14,000 Medicare beneficiaries, most of whom had type 2 diabetes, facilitating an analogue-to-human insulin switch was associated with a small increase in population-level HbA1c, this study showed. In an accompanying editorial, however, Kasia Lipska, MD, MHS, of the Yale School of Medicine in New Haven, Connecticut, explained that this change was not typically considered clinically meaningful.
Luo and colleagues noted that results from the Action to Control Cardiovascular Risk in Diabetes (ACCORD) trial, the Action in Diabetes and Vascular Disease (ADVANCE) trial, and the Veterans Affairs Diabetes Trial (VADT), suggest that small changes in HbA1c are unlikely to meaningfully affect the rates of macrovascular events or mortality among patients with type 2 diabetes. In addition, “the association with increases in HbA1c reported in this study may reflect underlying changes in clinical practice occurring during 2015 and 2016 as new data counseled against tight glycemic control among older adults with diabetes,” the team said.
This study adds to the literature which suggests that human insulins may result in similar clinical outcomes compared with insulin analogues for many patients with type 2 diabetes, the investigators continued. “Study participants were prevalent insulin users, had better HbA1c control at baseline (7.8%), had lower rates of clinical events, and were part of a health system that did not have a strong preference for human insulin.”
Overall expenditures for insulin were more than halved over 2 years — i.e., from $3.4 million per month in 2014 to $1.4 million in 2016. The 4.5-fold increased cost for human insulin during the same period (from $200,000 to $900,000 per month) was offset by the substantial drop in insulin analogue expenditures (from approximately $3.2 million to $500,000 per month). The proportion of patients who reached the Medicare Part D coverage gap dropped from 20.6% in 2014 to 11.1% in 2016.
Lipska noted that many analogues did not offer “major advantages” over human insulin products for patients with type 2 diabetes. Even clinical trials demonstrating a benefit for insulin analogues in terms of “modestly reducing” self-reported nocturnal hypoglycemia – an important outcome for patients with diabetes — were open-label and therefore a potential area of bias.
Ultimately, the goal of diabetes management is the prevention of long-term complications. Whether substantial savings in the short-term will translate into cheaper, individualized treatment for a progressive condition with heterogeneous clinical manifestations in the long term, is not clear.
Nevertheless, Luo et al. said, if even a small proportion of Medicare beneficiaries with type 2 diabetes who were prescribed analogues were switched to clinically equivalent human insulin, the resulting savings to the healthcare system would be substantial.

Fracture Risks High in Lupus

Low-income Americans with systemic lupus erythematosus (SLE) had double the risk of fractures compared with matched controls without SLE, analysis of Medicaid data found.
The hazard ratio for any fracture among patients with SLE was 2.09 (95% CI 1.85-2.37), according to Sara K. Tedeschi, MD, of Brigham and Women’s Hospital and Harvard Medical School in Boston, and colleagues.
And risks were even higher among SLE patients with nephritis (HR 3.06, 95% CI 2.24-4.17), the researchers reported online in Arthritis & Rheumatology.
Impaired bone health is common among patients with SLE, for reasons relating to both the disease and its treatment. “High circulating levels of inflammatory cytokines stimulate bone resorption, and greater SLE activity has been associated with low bone mineral density,” the researchers explained.
In addition, treatment with glucocorticoids — both daily doses and cumulative doses — can have a major impact on bone mineral density. When kidney involvement is present, patients can develop vitamin D deficiencies and hyperparathyroidism, further compromising bone health.
Yet little is known about the risk for fracture in these patients, and particularly among minorities and less affluent patients who typically have more disease complications.
To explore these concerns, Tedeschi and colleagues undertook a cohort study of SLE patients enrolled in Medicaid during the years 2007-2010, analyzing fracture rates for pelvis, wrist, hip, and humerus. Vertebral fractures were not included, because these can be asymptomatic and rates can be difficult to establish in claims-based analyses, the team explained.
Covariates included demographics, comorbidities, and medications such as hydroxychloroquine, azathioprine, mycophenolate mofetil (CellCept), cyclophosphamide, and rituximab (Rituxan). Prednisone use was characterized as low-dose (less than 7.5 mg/day) or high-dose (7.5 mg/day or more).
The analysis included 47,709 patients with SLE and 190,836 individuals enrolled in Medicaid without SLE. A total of 19.8% of the SLE patients had nephritis.
More than 90% were women, and mean age was 41. Median household income was slightly higher than $45,000.
More patients in the SLE group were African-American (43% vs 22%). Almost one-third were on low doses of prednisone and 13% were taking high doses. Hydroxychloroquine, which is considered a mainstay of lupus treatment, was being used only by 36%. A total of 5.8% of SLE patients had prescriptions for bisphosphonates, as did 0.7% of non-SLE controls.
The incidence ratios for any fracture were 4.32/1,000 person-years among SLE patients, 4.60/1,000 for SLE patients with nephritis, and 2.40/1,000 among non-SLE controls. The most common type of fracture in the SLE group overall was pelvic, with an incidence ratio of 1.72/1,000 person-years. The risks of pelvic fracture were even higher in the nephritis subgroup, at 2.23/1,000. In the control group, wrist fractures were the most frequent (1.04/1,000).
After adjustment for baseline prednisone use, fracture risks relative to non-SLE individuals were as follows:
  • Overall: HR 1.78, 95% CI 1.55-2.05
  • Hip: HR 3.22, 95% CI 2.33-4.46
  • Pelvis: HR 2.63, 95% CI 2.13-3.24
  • Humerus: HR 1.82, 95% CI 1.34-2.47
  • Wrist: HR 1.57, 95% CI 1.27-1.94
The subgroup of SLE patients with nephritis not only had an increased risk of any fracture compared with non-SLE controls, but also compared with SLE patients without nephritis (HR 1.58, 95% CI 1.20-2.07).
Among patients under age 50, the hazard ratio for fracture was 2.28 (95% CI 1.90-2.74) compared with controls, and for those over 50, the hazard ratio was 1.92 (95% CI 1.61-2.28), with slight attenuation after adjustment for comorbidities and prednisone use.
The American College of Rheumatology has recommended use of bisphosphonates for patients on long-term prednisone who are at moderate or high risk of fracture. “However, renal disease often contraindicates preventive treatment with bisphosphonates,” the investigators wrote.
Glucocorticoid use could account for only some of the increased risk, and suboptimal practice patterns also may have contributed, as evidenced by the low rate of hydroxychloroquine use, Tedeschi and co-authors noted.
“This work underscores the importance of identifying high-risk SLE and lupus nephritis patients for fracture prevention,” they concluded.
Limitations of the study, the researchers said, included a lack of information on body mass index, physical activity, and duration of disease.
The study was supported by the Lupus Foundation of America and the National Institutes of Health.
The authors reported having no conflicts of interest.
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Merck’s Prevnar challenger nabs FDA ‘breakthrough’ tag: Should Pfizer worry?

Merck & Co.’s endeavor to challenge Prevnar 13, the world’s best-selling vaccine, just got a speed-up. But it doesn’t appear to have too much of a lead over rival Pfizer.
The New Jersey pharma said Wednesday its 15-strain pneumococcal vaccine candidate, V114, has nabbed an FDA “breakthrough” designation in pediatric patients. With that, it will enjoy an expedited review process with closer communications with the FDA. And if everything goes well, the vaccine could win accelerated approval and priority review tags, too, speeding things up even further.
The FDA’s decision was based on data from two studies, Merck said. In both studies, V114 induced an immune response in infants for the two serotypes of S. pneumoniae not targeted by Pfizer’s Prevnar 13 and showed a similar effect in the other 13 serotypes, the company said.
V114’s “breakthrough” tag came about half a year after Pfizer earned the same designation—but in adults—for its 20-valent pneumococcal vaccine candidate, PF-06482077. The two vaccines are in a tight race to be the next big thing in vaccines, with V114 slightly ahead in phase 3.
Prevnar 13 has been hogging that title for some time. In 2018, it grew sales by 4% to reach $5.80 billion, thanks to rollouts in emerging markets. But with the market growing saturated, sales growth has slowed, and Pfizer predicts 2019 sales will be flat year over year. The U.S. adult market may see some decline due a shrinking pool of patients not yet vaccinated, Credit Suisse analyst Vamil Divan wrote in a Tuesday note to clients, referring to a Q&A with Pfizer’s investor relations team.

The company did warn of a potential risk at the upcoming CDC’s Advisory Committee on Immunization Practices (ACIP) meeting on Feb. 28, where experts might remove a recommendation for Prevnar in adults or limit it to high-risk adults only. Currently, the CDC recommends the pneumococcal vaccine for all children younger than 2 years of age and for all adults 65 years or older.
Judging by the Credit Suisse report, the Pfizer team seemed unfazed by Merck’s potential challenger. Merck started phase 3 testing on V114 mid-2018, and one of the two studies is a head-to-head trial against the Pfizer shot. PF-06482077 entered phase 3 a bit later—at the end of 2018. While the two additional serotypes included in the Merck shot are implicated in about 15% of pneumococcal cases, Pfizer’s 20-valent candidate can cover 15% beyond that, Pfizer told Divan.

Teva migraine drug gets sidelined in second PBM’s formulary

Amgen and Eli Lilly’s next-gen migraine drugs just won the prize in another formulary joust. UnitedHealthcare’s pharmacy benefits outfit OptumRx chose their drugs for its preferred coverage list, Reuters reported, citing an OptumRx coverage note.
And that leaves Teva with its second defeat. The company’s CGRP drug Ajovy didn’t make either of OptumRx’s preferred formularies. Patients can still access Teva’s Ajovy, but they would have to pay more.
OptumRx’s selection comes as the drugmakers fight for market share in the new class of migraine prevention drugs known as CGRP inhibitors. Partners Amgen and Novartis won the initial nod in the field with Aimovig last May, and Teva and Eli Lilly each followed with September FDA approvals. Each drug carries a list price of $6,900 per year. Amgen and Novartis set initial pricing, and their rivals followed suit.
Teva estimates payer formularies give more than 60% of U.S. commercial patients access to Ajovy, a company spokeswoman said via email, and the company’s discussion to improve patient access are continuing. Ajovy moved Friday from excluded to nonpreferred on OptumRx’s National Commercial Formularies and continued on the nonpreferred tier for Optum Select and Optum CTRX Select Formularies.
All patients with commercial insurance can use Teva’s copay assistance program to pay “as little as $0” for Ajovy.
“Teva’s Shared Solutions program is also committed to helping patients gain access to AJOVY with a team available to research and understand patients’ coverage and benefits,” she said.
OptumRx’s decision represents the third major coverage selection by a U.S. PBM giant for the drugs. Express Scripts, now part of insurance giant Cigna, made its initial decision on the new drugs back in October—quickly after September approvals for Ajovy and Emgality. The PBM chose to cover Amgen and Lilly drugs on its preferred list and excluded Teva altogether.
CVS Caremark, on the other hand, put Amgen’s Aimovig behind its two rivals in its decision unveiled last week. With the decisions, Eli Lilly’s Emgality has preferred coverage with all three PBM giants, while Amgen’s Emgality scored preferred coverage with UnitedHealthcare’s OptumRx and Express Scripts. Teva’s Ajovy only scored preferred coverage on CVS’ formulary.
Representatives for Optum didn’t immediately respond to a request for comment on the latest coverage decision.
The drugmakers each face different challenges, but the launches are important for all three. Amgen reported Aimovig sales of $119 million in 2018, while Eli Lilly and Teva haven’t yet reported fourth-quarter results.
On a conference call last week, Amgen EVP of global commercial operations Murdo Gordon said Aimovig “reached over 150,000 patients during 2018” and is on a “strong launch trajectory.” Gordon said the company “priced this product for access” and that it’s “been well received by payers for the most part.”
“What’s happened to date has been that we’ve received pretty good coverage with most payers even on a noncontracted basis allowing the product to be reimbursed on the basis of physician attestation alone,” he said on the call.