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Wednesday, May 1, 2019

Trevi Therapeutics IPO: What You Need To Know

The Street will gain access this week to an investment in the only opioid marketed in the U.S. and Europe without being classified as a controlled substance.

The IPO

Trevi Therapeutics, Inc. will issue nearly 4.7 million shares on the Nasdaq under ticker TRVI, according to the firm’s S-1 filing. Priced between $14 and $16, the offering represents 30.2 percent of outstanding shares and is expected to bring in about $85.87 million.
Lead underwriters include SVB Leerink, Stifel and BMO Capital Markets.
The company qualifies as an emerging growth company under the U.S. JOBS Act, which exempts management from certain SEC disclosure requirements.

The Company

The Connecticut biotech targets chronic pruritis, chronic cough related to idiopathic pulmonary fibrosis, and levodopa-induced dyskinesia related to Parkinson’s disease.
Its nalbuphine ER is in a Phase 2b/3 clinical trial for chronic pruritis that’s expected to yield top-line data in the first half of next year. The candidate is an oral extended release form of a drug that the U.S. has used for pain management for more than two decades.
It is the only opioid the U.S. and Europe have approved for marketing without classification as a controlled substance.
Trevi intends for the product to be the first in the U.S. and Europe that addresses pruritis — a market expected to grow from $10.8 billion in 2016 to $14.3 billion in 2022.

The Finances

Trevi incurred a net loss of $20.55 million in 2018 compared to $12.86 million in 2017. It has not yet generated revenue.
Since its start, Trevi has been backed by life sciences investors such as TPG Biotech, Omega Funds, Lundbeckfonden Ventures, New Enterprise Associates and Aperture Venture Partners.

TransMedics Group IPO: What You Need To Know

Looking to inject new life into your medtech portfolio? One company hits the market this week in an effort to keep your pulse and its pulse pumping.

The IPO

Transmedics Group, Inc. will issue 4.7 million shares on the Nasdaq under ticker TMDX, according to the firm’s S-1 filing. Priced between $15 and $17, the offering represents 24.4 percent of outstanding shares and is expected to bring in about $75 million at the midpoint of the valuation.
Lead underwriters include Morgan Stanley and JPMorgan.
The company qualifies as an emerging growth company under the U.S. JOBS Act, which exempts management from certain SEC disclosure requirements.

The Company

Based in Massachusetts, the medtech company sells proprietary technology to transport lungs, hearts and livers for transplant.
Its Organ Care System replicates elements of each organ’s natural physiological environment. The storage system keeps the heart beating, the lungs breathing, and the liver producing bile. These conditions are intended to prevent injury and oxygen deprivation during transport and thereby reduce organ waste and post-transplant complications.
TransMedics sees an opportunity to support 67,000 donors annually in the U.S., Canada, Australia and the European Union. In the U.S., alone, the opportunity represents about $8 billion.
Management awaits U.S. approval to expand applicability to additional transplant procedures.

The Finances

In 2018, the firm recorded $13 million in revenue leading to a net loss of $23.8 million. The year before, it earned $7.7 million for a loss of $20.8 million.

LivaNova price target lowered to $90 from $120 at Piper Jaffray

Piper Jaffray analyst Matt O’Brien lowered his price target for LivaNova to $90 from $120 after the company announced Q1 results, with revenues in-line with the company’s preannouncement. LivaNova expects Neuromod to be down year over year in 2019, but the analyst believes the impact to the business will be temporary, and he anticipates it will rebound later this year and into 2020. Overall, O’Brien acknowledges the near-term concerns over the story, but continues to believe the base business will stabilize and that the pipeline is receiving no value, making the name an “interesting one for patient investors.” He reiterates an Overweight rating on the shares.
https://thefly.com/landingPageNews.php?id=2901179

Cipla receives final approval for generic version of Gilead’s Letairis

Cipla Limited and its subsidiary Cipla USA, Inc., (hereafter referred to as ‘Cipla’) announce receipt of final approval for the Abbreviated New Drug Application (ANDA) for Ambrisentan Tablets 5mg & 10mg from the United States Food and Drug Administration (US FDA).
Cipla’s Ambrisentan Tablets 5mg & 10mg is AB-rated generic therapeutic equivalent version of Gilead Sciences, Inc’s Letairis. Ambrisentan tablet is an endothelin receptor antagonist indicated for the treatment of pulmonary arterial hypertension (PAH) (WHO Group 1) to improve exercise ability and delay clinical worsening.
The U.S. Sales of Letairis Tablets USP stood at $943 million in 2018. The product is available for shipping immediately.

Bayer: U.S. environment agency says glyphosate weed killer is not a carcinogen

The U.S. Environmental Protection Agency (EPA) said on Tuesday that glyphosate, a chemical in many popular weed killers, is not a carcinogen, contradicting decisions by U.S. juries that found it caused cancer in people.

The EPA’s announcement reaffirms its earlier findings about the safety of glyphosate, the key ingredient in Bayer’s Roundup. The company faces thousands of lawsuits from Roundup users who allege it caused their cancer.
“EPA continues to find that there are no risks to public health when glyphosate is used in accordance with its current label and that glyphosate is not a carcinogen,” the agency said in a statement.
Farmers spray glyphosate, the most widely used herbicide in U.S. agriculture, on fields of soybeans and other crops. Roundup is also used on lawns, golf courses and elsewhere.
The EPA did previously find ecological risks from the chemical and has proposed new measures to protect the environment from glyphosate use by farmers and to reduce the problem of weeds becoming resistant to it.
Bayer said it was pleased the EPA and other regulators who have assessed the science on glyphosate for more than 40 years continue to conclude it is not carcinogenic. “Bayer firmly believes that the science supports the safety of glyphosate-based herbicides,” it said in a statement. The company has repeatedly denied allegations that glyphosate and Roundup cause cancer.
But critics of the chemical disputed the EPA’s assurances.
“Unfortunately American consumers cannot trust the EPA assessment of glyphosate’s safety,” said Nathan Donley, a senior scientist at the environmental group Center for Biological Diversity.
Monsanto developed Roundup as the first glyphosate-based weed killer, but it is no longer patent-protected and many other versions are available. Bayer bought Monsanto last year for $63 billion.
The debate over glyphosate’s safety has put a spotlight on regulatory agencies around the world in recent years and, more recently, on U.S. courtrooms.
In 2015, the World Health Organization’s cancer arm classified glyphosate as “probably carcinogenic to humans.” But the EPA in 2017 said a decades-long assessment of glyphosate risks found the chemical was not likely carcinogenic to humans.
In February, analysts at Brazilian health agency Anvisa also determined the weed killer does not cause cancer while recommending limits on exposure.
In the first U.S. Roundup trial, a California man was awarded $289 million in August 2018 after a state court jury found the weed killer caused his cancer. That award was later reduced to $78 million and is being appealed by Bayer.
A U.S. jury in March awarded $80 million to another California man who claimed his use of Roundup caused his cancer.

Wells hopes Allergan shareholder vote marks end of ‘distractive narrative’

Wells Fargo analyst David Maris says he’s hopeful that Allergan shareholders voting in favor of a combined CEO/Chairman role “marks a turn of the distractive narrative” from break-up speculation to a focus on longer-term execution and pipeline. After speaking with a number of dermatologists and cosmetic surgeons in recent weeks, Maris fells optimistic about U.S. aesthetic market growth in Q1. The analyst maintains an Outperform rating on Allergan shares into the company’s Q1 results on May 7.

Nabriva’s Antibiotic Contempo Turned Down by FDA Over Manufacturing Issues

Nabriva Therapeutics, headquartered in Dublin, Ireland, announced that the Food and Drug Administration (FDA) had issued a Complete Response Letter (CRL) for its New Drug Application (NDA) for Contepo (Fosfomycin) to treat complicated urinary tract infections (cUTI), including acute pyelonephritis.
The rejection was over manufacturing issues, rather than efficacy issues.
The company had a target action date of April 30 for Contepo for serious infections. It was upgraded from an earlier target date of June 30 after a clarification of the classification and subsequent expedited review period for the NDA submitted in October 2018. It was also granted Qualified Infectious Disease Product (QIDP) and Fast Track designations.
Contepo (Fosfomycin for injection) is a novel intravenous antibiotic with a broad spectrum of Gram-negative and Gram-positive activity, including against most multi-drug resistant (MDR) strains such as ESBL-producing Enterobacteriaceae. Intravenous Fosfomycin has been approved for over 45 years in Europe for a variety of infections. Contepo is a new dosing approach originally developed by Zavante, which Nabriva acquired.
The company expects to request a “Type A” meeting with the agency to discuss the CRL. “We will be working with the FDA in the coming weeks to gain a full understanding of the FDA’s comments, with the goal of bringing this important treatment to patients as quickly as possible,” stated Ted Schroeder, Nabriva’s chief executive officer.

About a year ago, Achaogen received an FDA approval for Zemdri (plazomicin), another antibiotic approved for multi-drug resistant (MDR) Gram-negative infections, including cUTI and pyelonephritis. The drug launched in July 2018. At the time, the company announced plans to eliminate 80 jobs, about 28% of its staff, to focus on the launch and two other research programs.
Two weeks ago, the company filed for Chapter 11 bankruptcy reorganization. It hopes to continue normal business operations and took out a $25 million loan from Silicon Valley Bank so it could. Sales of Zemdri have been disappointing, and it wasn’t approved for systemic bloodstream infections, limiting its use.
Another antibiotics company, Melinta Therapeutics, cut staff in November 2018. At the time, the company sent a statement to New Haven Biz, which said, “In the face of an extremely challenging time for the antibiotics industry, Melinta has made the difficult decision to significantly reduce our investment in discovery research and are currently looking for strategic partners to take on these activities, located at our New Haven facility.”
The company’s third-quarter 2018 statements indicate higher costs and lower-than-expected sales for its antibiotics for difficult to treat skin infections and other infectious diseases.
Even if Nabriva eventually gets Contepo approved, it faces a tough market. As a recent Wiredarticle, “The Antibiotics Business Is Broken—But There’s a Fix,” notes, drug development is generally built on the idea that if you spend 10 to 15 years developing a drug and spend at least $1 billion to do so, you can then charge a high enough price or sell enough of the drug to earn back the R&D expenses, reward investors and be profitable.
“That math works for most of the products of the pharmaceutical industry, from old drugs that people take every day—antidepressants, beta-blockers, statins—to the newest cancer therapies known as CAR-T, which can cost almost $500,000 per dose. But antibiotics don’t fit that equation. Unlike cancer drugs, most antibiotics are inexpensive; the few with high price tags are reserved for rare hospital use. And unlike drugs to treat chronic diseases, people take antibiotics for only short periods of time,” Wired wrote.
As a result, big pharma has largely gotten out of the antibiotics business, while about 90% of research on new antibiotics is being conducted by small biotech with market caps of less than $100 million, more than half pre-revenue. And they desperately need funds and revenue to recoup costs and build marketing infrastructure, something that can be difficult to get in the antibiotics business.