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Wednesday, April 3, 2019

Gates, Bezos Team up to Fund Alzheimer’s Diagnostics

Bill Gate’s The Bill & Melinda Gates Foundation and Jeff Bezos’ Day One Fund have teamed to donate $15 million to the Diagnostics Accelerator, a project that is part of the Alzheimer’s Drug Discovery Foundation (ADDF). The Diagnostics Accelerator’s mission is fairly straightforward, although quite difficult—develop an easy and affordable test for Alzheimer’s disease.
On his blogGatesNotes, Bill Gates outlines current advances in diagnosis Alzheimer’s, which is essentially via a spinal tap or a brain scan—invasive and expensive, respectively. And generally, people don’t look for diagnoses until they start showing symptoms. He writes, “It’s hard to overstate how important finding a reliable, affordable, and easy-to-use diagnostic is for stopping Alzheimer’s.”
One area of promise is a blood test. That was for quite some time not believed to be possible, but Randy Bateman, a researcher at Washington University in St. Louis, identified changes in Alzheimer’s patients’ blood in 2017 that has remained consistent and also been verified by other researchers. Gates writes, “There’s a good chance a blood test will start being used to recruit patients into Alzheimer’s drug trials within the next year or two.”

Another approach that Gates is excited about is linguistic. Rhoda Au heads neuropsychology for the Framingham Heart Study, which has tracked the health of one town’s residents for more than 70 years, including audio records of the patients.
Au and others are working on “digital markers,” that might identify changes in speech or writing habits that might act as early Alzheimer’s disease diagnostics.
Part of Gates’s blog is related to the ADDF’s Diagnostic Accelerator’s announcement today that it plans to fast-track digital tools for Alzheimer’s and related dementias. The Diagnostics Accelerator program itself was created in July 2018 with funding from co-founder Leonard Lauder, Gates, the Dolby family, and the Charles and Helen Schwab Foundation. Additional funds came from The Association for Frontotemporal Degeneration. Gates’ and Bezos’ funds bring the total program funding to almost $50 million.
The ADDF is announcing that funding for its Diagnostics Accelerator Digital Biomarker Initiative is now open to scientists and clinicians worldwide working in academic institutions, nonprofits, industry partnerships, and biotechnology companies, as well as new start-ups.
Funding priorities include portables, sensors, software, mobile and tablet apps, smart home systems, and virtual and augmented reality platforms.
Gates wrote, “We don’t know yet if voice analysis will work. It’s still early in the research process, and we don’t even know what changes in speech patterns we’re looking for yet. But I’m excited about a potential future where identifying your risk of developing Alzheimer’s is as simple as an app on your phone that you can instruct to listen for warning signs in your speech.”

The recent failure of Alzheimer’s drug aducanumab by Biogen and Tokyo-based Eisai underlines the difficulties of developing drugs to prevent and treat Alzheimer’s disease.
Howard Fillit, Founding Executive Director and Chief Science Officer of the ADDF wrote in a blog shortly after the failure was reported, “I had hope for this study as it had some promising results in the earlier phases of clinical development, showing that the drug ‘hit its target’ and was able to remove beta-amyloid from the brain of patients. It was also one of the first clinical trials to ensure that every patient participating had beta-amyloid plaques in their brains. The ADDF supported the first biomarker ever approved to diagnose Alzheimer’s—the beta-amyloid PET scan—and we continue to invest in these critical tools.”
He points out that, although it would seem obvious that if you were conducting clinical trials to remove plaques from the brain you would want to ensure the patients actually had plaques in the brain, “that hasn’t been the case until recently. Researchers have instead used tests that measure ‘downstream’ effects such as brain volumes on MRI, and cognitive outcomes like memory problems as criteria to enroll patients. Studies of patients after death have indicated that up to 30 percent of those enrolled in previous clinical trials didn’t in fact have plaques and possibly didn’t have Alzheimer’s at all.”
This clearly states just how important it is to develop a reliable, affordable and easy diagnostic test for Alzheimer’s, not only to potentially prevent the disease but to simply more reliably develop drugs to treat it.
Fillit wrote, “The Diagnostics Accelerator was created to address the lack of biomarkers to easily and more specifically screen and diagnose patients, stage disease progression, monitor response to treatment, and improve the rigor and efficiency of clinical trials—critical to the development of effective drugs for the prevention and treatment of Alzheimer’s.”

Recro Pharma ups FY19 revenue view to $85-$87M from $80M, consensus $85.12M

Raises FY19 adjusted EBITDA view to $38M-$40M from $34M
https://thefly.com/landingPageNews.php?id=2888273

Silk Road Medical raises IPO size and increases range

Silk Road Medical has raised its IPO deal size to 6M shares from 4.7M shares and increased the range to $19.00-$20.00 from $15.00-$17.00. JPMorgan and BofA/Merrill are acting as joint book running managers for the offering.

Cigna, Express Scripts announce Patient Assurance Program to cap insulin costs

Addressing the need for greater affordability and access to insulin, Cigna (CI) and Express Scripts (ESRX) announced the launch of the Patient Assurance Program, which will ensure eligible people with diabetes in participating plans pay no more than $25 for a 30-day supply of insulin. The Patient Assurance Program will be available to members in participating non-government funded pharmacy plans managed by Express Scripts, including Cigna and many other health plans, with out-of-pocket costs for insulin greater than $25. Out of pocket costs for insulin include deductibles, copays or coinsurance. In most cases, people who use insulin will see lower out-of-pocket costs without any increased cost to the plan. Cigna and Express Scripts clients will activate this new program for participating plans by moving covered insulin products to a lower copayment. For users of insulin plans managed by Cigna and Express Scripts, the average out-of-pocket cost for insulin was $41.50 for a 30-day supply in 2018. Through the Patient Assurance Program, individuals who are eligible for the program will save approximately 40%, as well as gain peace of mind in knowing they will have access to improved affordability. Individuals with plan designs that involve coinsurance and/or a high deductible, will benefit the most from this new program.

Verastem initiated at Cantor Fitzgerald

Cantor Fitzgerald starts Verastem with Overweight, $5 price target. Cantor Fitzgerald analyst Alethia Young started Verastem Oncology with an Overweight rating and $5 price target. The launch of the company’s first drug, Copiktra, is in the early days and investor expectations remain very low for commercial potential, Young tells investors in a research note. The analyst sees an opportunity for Copiktra, due to unmet need in the 20,000 relapsed/refractory chronic lymphocytic leukemia/small lymphocytic lymphoma and follicular lymphoma patients. The market underappreciates the commercial potential for Copiktra, says the analyst.

Genmab announces Phase 3 study of daratumumab by Janssen

Genmab (GMXAY) announced that its collaboration partner, Janssen (JNJ), plans to start a new Phase III study of daratumumab in multiple myeloma. The study will compare subcutaneous daratumumab in combination with lenalidomide versus lenalidomide alone as maintenance treatment in patients with newly diagnosed multiple myeloma who are minimal residual disease, or MRD, positive after frontline autologous stem cell transplant. The primary end point of the study is MRD conversion rate, from MRD positive to MRD negative status, at twelve months. The study is planned to start in the first half of 2019. In August 2012, Genmab granted Janssen an exclusive worldwide license to develop, manufacture and commercialize daratumumab.

Walgreens reimbursement pressure shows distributor risk: Morgan Stanley

Morgan Stanley analyst Ricky Goldwasser said the guidance cut made by Walgreens Boots Alliance (WBA) is due to the same “perfect storm of industry headwinds” addressed by CVS Health (CVS) earlier in the year, including increased reimbursement pressure, lower generic deflation, lower brand inflation and declining comparable sales in the front-end of the store. Though Walgreens management suggested reimbursement headwinds should normalize in fiscal 2020, Goldwasser said he could see more downside from continued reimbursement headwinds and structural changes if new rebate rule comes into play. He also views pharmacy reimbursement pressure as a leading indicator suggesting risk to distributors’ sell side margins and earnings, including for AmerisourceBergen (ABC), which Goldwasser notes is part of the WBAD purchasing consortium. Other drug distributors include McKesson (MCK) and Cardinal Health (CAH).