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Monday, April 8, 2019

Merck wins Versum’s support for sweetened $6.5 billion offer

Merck KGaA won the support of Versum Materials Inc’s board with a sweetened $6.5 billion takeover proposal, topping an agreed merger with rival Entegris.

“This proposal constitutes a ‘Superior Proposal’ as defined in Versum’s previously announced merger agreement with Entegris, Inc.,” Versum said in a statement on Monday.
On a per share basis, Merck offered $53, up from $48 previously, after reviewing business data and following meetings between Merck Chief Executive Stefan Oschmann and Versum Chairman Seifi Ghasemi, filings showed.
Entegris has the right to propose revisions to the existing merger agreement until April 11.
Versum will owe its jilted partner $140 million in termination fees if it agrees to be bought by Merck.
Versum, the former specialty chemicals division of industrial gases group Air Products, had previously opposed Merck’s overture, saying it was committed to an all-share merger with Entegris, agreed in January.
Merck last month launched a hostile all-cash takeover offer to Versum shareholders – with a price tag of $5.9 billion including debt – as the German pharma group looks to boost its presence in the semiconductor materials market.[L3N21G3QZ]
Based on about $700 million in assumed Versum debt and about 109 million shares, the increased Merck offer would be worth close to $6.5 billion.

Audentes Licenses Nationwide Children’s Hospital’s Muscular Dystrophy Tech

San Francisco-based Audentes Therapeutics signed a licensing agreement and collaboration deal with Nationwide Children’s Hospital to expand its pipeline for vectorized antisense treatments for Duchenne muscular dystrophy (DMD) and myotonic dystrophy type 1 (DM1).
Audentes and Nationwide Children’s are working together to develop AT702, an AAV-antisense therapy candidate engineered to induce exon 2 skipping for DMD with duplications of exon 2 and mutations in exons 1-5 of the dystrophin gene. DMD is a muscle-wasting disease that primarily affects boys and often leads to early death in the twenties. It is caused by various mutations in the dystrophin gene, which is involved in muscle development.
Vectorized exon skipping utilizes an adeno-associated virus (AAV) vector to deliver an antisense sequence that is designed to cause cells to skip over mutations or misaligned sections of the genetic code. This can lead to the expression of a more complete, functional protein, although the protein is often shortened or truncated.
As part of the deal, Audentes will also gain the expertise of two Nationwide Children’s researchers, Kevin M. Flanigan and Nicolas S. Wein.

“Today’s announcement represents a significant step forward in expanding our scientific platform and deepening our pipeline of product candidates for neuromuscular diseases with high unmet medical need,” stated Matthew R. Patterson, chairman and chief executive officer of Audentes. “We see tremendous potential in combining AAV with validated oligonucleotide-based approaches to treat diseases that are not amenable to traditional AAV-based gene replacement. We believe this approach, combined with our in-house large-scale cGMP manufacturing capability, can deliver best-in-class therapies for the treatment of Duchenne muscular dystrophy and myotonic dystrophy.”
In addition to developing AT702, separate from the Nationwide Children’s collaboration, Audentes is running preclinical studies to advance AT751 and AT753, also vectorized exon skipping candidates, to treat DMD patients with genotypes involving exon 51 and exon 53 skipping. Both use the same vector construct backbone as AT702, which may speed clinical development.
With these three programs, Audentes is targeting more than 25% of DMD patients. It hopes that by leveraging its vectorized exon-skipping platform, it can develop enough products to treat up to 80% of DMD patients.
Audentes and Nationwide Children’s are also evaluating vectorized RNA knockdown and vectorized exon skipping for DM1. They are designed to stop the accumulation of toxic dystrophia myotonica-protein kinase (DMPK) RNA in cells, restoring normal cellular function. Preclinical studies are ongoing and Audentes is planning an Investigational New Drug (NDA) application for AT466 in 2020.

In October 208, Sarepta Therapeutics, based in Cambridge, Mass., signed a discovery and development deal with Nationwide Children’s Hospital. This deal gave Sarepta the exclusive option to a Nationwide Children’s gene therapy candidate, neurotrophin 3 (NT-3), to treat Charcot-Marie-Tooth (CMT) neuropathies, including CMT type 1A. CMT is a family of hereditary, degenerative nerve diseases that affect motor skills. It is the most common inherited neuromuscular disorder, affecting over 2.8 million people around the world.
In 2016, the U.S. Food and Drug Administration (FDA) approved the first drug to treat DMD, Sarepta’s Exondys 51. It was a long, dramatic and controversial approval journey involving numerous public hearings, internal FDA battles and letters from Congress and leading DMD physicians to the agency.
These deals mark the entry of gene therapy into mainstream drug development. Roche recently acquired Spark Therapeutics for $4.8 billion. Spark developed a gene therapy for a rare eye disease and hemophilia. And in 2018, Novartis acquired AveXis for $8.7 billion. AveXis has a gene therapy for spinal muscular atrophy (SMA).
Marshall Gorden, a senior research analyst at ClearBridge Investments, told Barron’s last year, “Big drug companies are waking up and saying this is a real technology and that they need to be there.”

Ardelyx initiated with an Overweight at Piper Jaffray

Piper Jaffray analyst Christopher Raymond started Ardelyx with an Overweight rating and $15 price target. The analyst sees a “sizeable disconnect” between Wall Street’s view of tenapanor’s potential versus that of the nephrology community. While the drug is not fully de-risked, there is enough data to get a “strong sense” of tenapanor’s ultimate clinical profile, which confers $1B-plus revenue potential, Raymond tells investors in a research note. Nephrologists appear “fully aware of this drug’s potential with swift and dramatic uptake projected if approved,” adds the analyst. He thinks tenapanor’s launch is “poised to be one of biotech’s great product launches of 2021.”

Versum says revised proposal from Merck KGaA ‘superior’ to Entegris

https://thefly.com/landingPageNews.php?id=2889474

United Therapeutics: esuberaprost study did not meet primary endpoint

United Therapeutics announced that the BEAT clinical study of esuberaprost tablets in patients suffering from pulmonary arterial hypertension did not meet its primary endpoint of delayed time to first clinical worsening event. Accordingly, United Therapeutics has decided to discontinue further esuberaprost development.

Madrigal Pharmaceuticals to present additional data from Phase 2 NASH study

Madrigal Pharmaceuticals announced that on Thursday, April 11, at the International Liver Congress 2019, European Association for the Study of the Liver in Vienna, further in depth analyses of the Phase 2 NASH study with MGL-3196 will be presented. Resmetirom is currently in Phase 3 development for the treatment of NASH patients with stage 2-3 fibrosis. MGL-3196-05 was a 36-week multicenter, randomized, double-blind, placebo- controlled serial MRI-PDFF, paired liver biopsy study in adults with biopsy-confirmed NASH and hepatic fat fraction greater than or equal to10%. In 12 week interim and 36 week final analyses, MGL-3196 treated patients had significantly more reduction of liver fat compared with placebo on MRI-PDFF and up to 77% of resmetirom-treated patients showed at least a 30% reduction of liver fat. NASH resolution was attained on biopsy in 39% of resmetirom patients who had a positive PDFF response. At 36 weeks 107 paired biopsies were assessed to examine the predictive power of PDFF response on histologic response of NAS, NASH resolution and reduction of ALT. In resmetirom-treated patients, a 12 week PDFF response versus non-response was predictive of NASH resolution at week 36 and correlated with improvements in steatosis, hepatocyte ballooning and inflammation as well as reduction in ALT. Placebo patients with weight loss greater than or equal to5% were likely PDFF responders, and a PDFF response in placebo patients also predicted reductions in inflammation and hepatocyte ballooning. Dr. Harrison stated, “These analyses show that positive MRI-PDFF responses correlate with reductions in hepatocyte ballooning, inflammation and NASH resolution on liver biopsy and are associated with decreases in ALT. The data suggest that reduction of hepatic fat is a critical component of NASH improvement and resolution.”

Baxter downgraded to In Line on valuation at Evercore ISI

Baxter downgraded to In Line on valuation at Evercore ISI. As previously reported, Evercore downgraded Baxter to In Line from Outperform with an $84 price target. Analyst Vijay Kumar views valuation as “fair at current levels” following multi-year outperformance.