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Thursday, June 13, 2019

Veeva benefits from Medidata acquisition – Canaccord

Veeva Systems (NYSE:VEEV) should see long-term benefits from Dassault Systemes’ purchase of Medidata, says Canaccord Genuity analyst David Hynes.
Hynes writes that the deal “significantly enhances Veeva’s opportunity in what will perhaps prove to be the firm’s most valuable Vault application,” but the share shifts “will be gradual over a multi-year period.”
Canaccord maintains a Hold rating and $135 PT on valuation concerns and will turn more bullish if shares pull back or the fundamentals grow into the current valuation.
Veeva shares closed yesterday up 1.6% to $167.02.
Veeva has a Neutral Quant rating.

Wednesday, June 12, 2019

JMP Securities Downgrades Savara (SVRA) to Market Perform

From Outperform

FDA overlooked red flags in drugmaker’s testing of new depression med

Spravato maker Janssen provided the FDA modest evidence that it worked and only in limited trials. It presented no information about the use of Spravato beyond 60 weeks.


KEY TAKEAWAYS

The expert panel cleared Spravato according to the evidence that the FDA and Janssen had determined was sufficient.
Forty-nine of the 227 people who participated in Janssen’s only successful efficacy trial had failed just one class of oral antidepressants.
Three patients who received the drug died by suicide during clinical trials, compared with none in the control group, raising red flags Janssen and the FDA dismissed.

Ketamine is a darling of combat medics and clubgoers, an anesthetic that can quiet your pain without suppressing breathing and a hallucinogenic that can get you high with little risk of a fatal overdose.
For some patients, it also has dwelled in the shadows of conventional medicine as a depression treatment — prescribed by their doctors, but not approved for that purpose by the federal agency responsible for determining which treatments are “safe and effective.”
That effectively changed in March, when the Food and Drug Administration approved a ketamine cousin called esketamine, taken as a nasal spray, for patients with intractable depression. With that, the esketamine nasal spray, under the brand name Spravato, was introduced as a miracle drug — announced in press releases, celebrated on the evening news and embraced by major healthcare providers like the Department of Veterans Affairs.
The problem, critics say, is that the drug’s manufacturer, Janssen, provided the FDA at best modest evidence it worked and then only in limited trials. It presented no information about the safety of Spravato for long-term use beyond 60 weeks. And three patients who received the drug died by suicide during clinical trials, compared with none in the control group, raising red flags Janssen and the FDA dismissed.
The FDA, under political pressure to rapidly greenlight drugs that treat life-threatening conditions, approved it anyway. And, though Spravato’s appearance on the market was greeted with public applause, some deep misgivings were expressed at its day-long review meeting and in the agency’s own briefing materials, according to public recordings, documents and interviews with participants, KHN found.
Dr. Jess Fiedorowicz, director of the Mood Disorders Center at the University of Iowa and a member of the FDA advisory committee that reviewed the drug, described its benefit as “almost certainly exaggerated” after hearing the evidence.
Fiedorowicz said he expected at least a split decision by the committee. “And then it went strongly in favor, which surprised me,” he said in an interview.
Esketamine’s trajectory to approval shows — step by step — how drugmakers can take advantage of shortcuts in the FDA process with the agency’s blessing and maneuver through safety and efficacy reviews to bring a lucrative drug to market.
Step 1: In late 2013, Janssen got the FDA to designate esketamine a “breakthrough therapy” because it showed the potential to reverse depression rapidly — a holy grail for suicidal patients, such as those in an emergency room. That potential was based on a two-day study during which 30 patients were given esketamine intravenously.
“Breakthrough therapy” status puts drugs on a fast track to approval, with more frequent input from the FDA.
Step 2: But discussions between regulators and drug manufacturers can affect the amount and quality of evidence required by the agency. In the case of Spravato, they involved questions like, how many drugs must fail before a patient’s depression is considered intractable or “treatment-resistant”? And how many successful clinical trials are necessary for FDA approval?
Step 3: Any prior agreements can leave the FDA’s expert advisory committees hamstrung in reaching a verdict. Fiedorowicz abstained on Spravato because, though he considered Janssen’s study design flawed, the FDA had approved it.
The expert panel cleared the drug according to the evidence that the agency and Janssen had determined was sufficient. Dr. Matthew Rudorfer, an associate director at the National Institute of Mental Health, concluded that the “benefits outweighed the risks.” Explaining his “yes” vote, he said: “I think we’re all agreeing on the very important, and sometimes life-or-death, risk of inadequately treated depression that factored into my equation.”
But others who also voted “yes” were more explicit in their qualms. “I don’t think that we really understand what happens when you take this week after week for weeks and months and years,” said Steven Meisel, the system director of medication safety for Fairview Health Services based in Minneapolis.

A NASAL SPRAY OFFERS A PATH TO A PATENT

Spravato is available only under supervision at a certified facility, like a doctor’s office, where patients must be monitored for at least two hours after taking the drug to watch for side effects like dizziness, detachment from reality and increased blood pressure, as well as to reduce the risk of abuse. Patients must take it with an oral antidepressant.
Despite those requirements, Janssen, part of Johnson & Johnson, defended its new offering. “Until the recent FDA approval of Spravato, healthcare providers haven’t had any new medication options,” Kristina Chang, a Janssen spokeswoman, wrote in an emailed statement.
Esketamine is the first new type of drug approved to treat severe depression in about three decades.
Although ketamine has been used off-label for years to treat depression and post-traumatic stress disorder, drugmakers saw little profit in doing the studies to prove to the FDA that it worked for that purpose. But a nasal spray of esketamine, which is derived from ketamine and (in some studies) more potent, could be patented as a new drug.
Although Spravato costs more than $4,700 for the first month of treatment (not including the cost of monitoring or the oral antidepressant), insurers are more likely to reimburse for Spravato than for ketamine, since the latter is not approved for depression.
Shortly before the committee began voting, a study participant identifying herself only as “Patient 20015525” said: “I am offering real-world proof of efficacy, and that is I am both alive and here today.”
The drug did not work “for the majority of people who took it,” Meisel, the medication safety expert, said in an interview. “But for a subset of those for whom it did work, it was dramatic.”

CONCERNS ABOUT TESTING PRECEDENTS

Those considerations apparently helped outweigh several scientific red flags that committee members called out at the hearing.
Although the drug had gotten breakthrough status because of its potential for results within 24 hours, the trials were not persuasive enough for the FDA to label it “rapid-acting.”
The FDA typically requires that applicants provide at least two clinical trials demonstrating the drug’s efficacy, “each convincing on its own.” Janssen provided just one successful short-term, double-blind trial of esketamine. Two other trials it ran to test efficacy fell short.
To reach the two-trial threshold, the FDA broke its precedent for psychiatric drugs and allowed the company to count a trial conducted to study a different topic: relapse and remission trends. But, by definition, every patient in the trial had already taken and seen improvement from esketamine.
What’s more, that single positive efficacy trial showed just a 4-point improvement in depression symptoms compared with the placebo treatment on a 60-point scale some clinicians use to measure depression severity. Some committee members noted the trial wasn’t really blind since participants could recognize they were getting the drug from side effects like a temporary out-of-body sensation.
Finally, the FDA lowered the bar for “treatment-resistant depression.” Initially, for inclusion, trial participants would have had to have failed two classes of oral antidepressants.
Less than two years later, the FDA loosened that definition, saying a patient needed only to have taken two different pills, no matter the class.
Forty-nine of the 227 people who participated in Janssen’s only successful efficacy trial had failed just one class of oral antidepressants. “They weeded out the true treatment-resistant patients,” said Dr. Erick Turner, a former FDA reviewer who serves on the committee but did not attend the meeting.
Six participants died during the studies, three by suicide. Janssen and the FDA dismissed the deaths as unrelated to the drug, noting the low number and lack of a pattern among hundreds of participants. They also pointed out that suicidal behavior is associated with severe depression — even though those who had suicidal ideation with some intent to act in the previous six months, or a history of suicidal behavior in the previous year, were excluded from the studies.
In a recent commentary in the American Journal of Psychiatry, Dr. Alan Schatzberg, a Stanford University researcher who has studied ketamine, suggested there might be a link due to “a protracted withdrawal reaction, as has been reported with opioids,” since ketamine appears to interact with the brain’s opioid receptors.
Kim Witczak, the committee’s consumer representative, found Janssen’s conclusion about the suicides unsatisfying. “I just feel like it was kind of a quick brush-over,” Witczak said in an interview. She voted against the drug.

AMA maintains its opposition to single-payer systems

The American Medical Association will remain opposed to proposals for the U.S. to create a single-payer healthcare system. The group voted narrowly to maintain its stance on Tuesday at its annual House of Delegates meeting.
Delegates of the largest physicians’ organization voted 53% to 47% against adopting an amendment to remove the AMA’s formal opposition to a single-payer healthcare system, ending days of contentious debate that pitted the organization’s leadership against a contingent represented largely by medical students.
“As long as we maintain our blanket opposition our AMA cannot ensure we are a part of every conversation,” said Dan Pfeifle, a fourth-year medical student at the University of South Dakota Sanford School of Medicine and an alternate delegate of the AMA’s Medical Student Section.
Delegates ended up voting overwhelming in favor of adopting a report from the AMA’s Council on Medical Service that reaffirmed efforts to improve upon the Affordable Care Act instead of “nationalized” healthcare coverage.
Some of the report’s recommendations included expanding eligibility for tax credits on insurance premiums beyond 400% of the federal poverty level, as well as to expand eligibility for and increase the size of cost-sharing reductions.
“The AMA proposal for reform, based on AMA policy, is still the right direction … to cover the uninsured, and is cognizant that, in this environment, the ACA is the vehicle through … which the AMA proposal for reform can be realized,” the report stated.
The debate over whether the country should adopt a Medicare for All type of system has gotten increased attention in recent months as it has become a key policy issue among several of the Democratic presidential candidates.
The AMA has long opposed single-payer efforts out of concerns that it would lower provider reimbursement rates and limit patient choice on healthcare coverage and services they can access.
“I think we ought to put a stake in the heart of single payer,” said Dr. Donald Palmisano, of Metaire, La., who served as AMA president in 2003-04. “We’ve done it before; we ought to do it again.”
But support for a single-payer system has grown among physicians. At the AMA annual delegates meeting last year, supporters got the body to at least study the impact of changing its policy.
This year, the issue sparked a protest outside of the AMA’s meeting on its first day when medical students joined nurses and advocates to call on the organization to drop its fight against Medicare for All.
More broadly, public opinion for single payer has grown over the years so that a majority of Americans now support such a system. According to a survey conducted by the Kaiser Family Foundation in April, 56% of Americans favor a national health plan in which all individuals got their insurance from a single government plan.

Hospitals look to cut opioids from surgery and beyond

Opioids used to be the go-to choice for treating surgical patients’ pain. Now some hospital officials are trying to get those patients through their surgery without ever receiving any of the highly addictive drugs.
They’re doing so by revamping surgical pain management, implementing a more thoughtful prescribing approach and relying on non-addictive and less-addictive alternatives.
Dr. Neil Martin, chief quality officer at Geisinger and chair of its neuroscience institute, said it was highly unlikely patients who undergo a surgical procedure today would receive anywhere near the number of opioids they were prescribed just a decade ago.
He said much has been learned over that time about the health risks associated with prolonged exposure to such drugs.
“Historically patients were getting opioids intraoperatively, in the recovery room, in the hospital as they recovered and at the time of discharge,” Martin said.
Danville, Pa.-based Geisinger, like many other health systems, has launched initiatives in recent years aimed at reducing the number of opioids patients receive during their care.
The focus has largely been on improving prescribing practices within the emergency department, as well 
as among primary-care clinicians and dentists, who have traditionally accounted for nearly half of all prescriptions written annually in the U.S.

Changing protocols
But a growing number of hospitals and health systems have begun to examine ways to reduce the potential for overprescribing among surgeons.
Doing so requires providers to change protocols and practices, which have been widely accepted for decades, that recognize opioids as the primary option for managing postoperative pain.
Research is supporting the expanded attention. A study published in November in the journal JAMA Surgery highlighted the problem of overprescribing among surgeons. It found they prescribed opioids for nearly four times the amount that patients actually used and that the quantity of opioids prescribed was associated with higher patient consumption of such drugs.
Martin said Geisinger’s effort overall to limit opioid use has led to a dramatic decline in prescribing at the health system, with the number of opioid prescriptions written cut almost in half from 60,000 a month in 2014 to 31,000 a month currently.
Last November, the system launched its Proven-
Recovery program to introduce best practices on opioid prescribing to more than 40 surgical procedures with an objective to implement it in more than 100 elective procedures by the end of 2019.
A key goal of the program has been to eliminate the use of opioids for postoperative pain management altogether. Patients may receive a combination of nerve-blocking anesthesia during their surgery and a combination of non-opioid medications such as acetaminophen, ibuprofen, ketamine and lidocaine to manage pain during their recovery.
But the approach also focuses on managing patients’ nutrition level before surgery, which Martin said accelerates the postoperative healing process. Martin said the program so far led to an 18% reduction in the use of opioids in surgery.
“We’re in the process of reassessing that figure right now, and I’m sure it’s going to be twice that much of a reduction,” Martin said.
“Historically patients were getting opioids intraoperatively, in the recovery room, in the hospital as they recovered and at the same time of discharge. We’re in the process of reassessing that figure right now, and I’m sure it’s going to be twice that much of a reduction,” said Dr. Neil Martin, chief quality officer at Geisinger and chair of its neuroscience institute.

Challenging norms
The Cleveland Clinic over the past couple of years also has developed a postoperative pain management initiative that examined the potential for using narcotic alternatives and it has shown promising results.
Cleveland Clinic’s approach relies on a greater use of narcotic alternatives before, during and after surgery, according to Dr. Eric Chiang, an anesthesiologist at the Clinic. The approach involves regional anesthesia (injecting a drug directly into the surgical site or pain area), and increasing the use of medications like acetaminophen and ibuprofen.
“The science behind it shows that opioids are not the best pain medicine,” Chiang said. “We’re probably not using Tylenol and nonsteroidals enough.”
Cleveland Clinic last year began a pilot program to change postoperative pain management protocols for patients who undergo cesarean sections, one of the most common surgical procedures in the U.S.
Chiang said C-section patients were traditionally prescribed Percocet or Vicodin while in the hospital only to receive more opioids upon discharge. Under the new protocol, patients got scheduled doses of either 1,000 mg of Tylenol or a large dose of Motrin every three hours even if they did not request pain medication.
Patients were informed they could still request an opioid if their pain was too great, but within the first month of making the change, opioid use among post C-section patients fell by 70%. Upon discharge most C-section patients are no longer prescribed an opioid, and those who do receive a prescription get an average of five pills compared with the 31 pills patients typically received in 2015.
“By minimizing and prescribing appropriate amounts of narcotic medicine—that’s how you fight the opioid crisis,” Chiang said. “It’s all those extra pills sitting at home that get diverted, and those pills in the community are what fuel the crisis.”
Dr. Candace Granberg, a pediatric urologic surgeon at the Mayo Clinic, said her department since at least 2012 has adopted an opioid-free pain management approach toward postoperative patients that has been successful enough for many patients to not require any pain medications while in recovery or after discharge.
She said a key part of her approach has been the focus on anticipating the need for treatment before the patient actually experiences pain, with patients receiving doses of acetaminophen and ibuprofen on an alternating schedule throughout their visit and having a nerve block applied to surgical areas prior to their procedure.
Prior to a procedure, the surgical team discusses the best ways to block patient pain during the operation and to control it during the patient’s recovery and at home.
Geisinger’s Martin said the system’s ProvenRecovery approach has been used with more than 2,000 patients since November. But he acknowledged the goal of eliminating opioids entirely from surgery has been difficult to achieve.
He estimated only about 20% to 30% of patients undergoing certain procedures are opioid-free. “There’s very few where absolutely no opioids are prescribed—that’s an aspirational goal for us,” Martin said. “But our No. 1 goal is to make sure patients’ pain is controlled.”
The goal of prescribing zero opioids is complicated by the fact that such drugs are still needed to control pain in a minority of patients. Further complicating matters, more people in general use opioids to treat chronic pain and may build a tolerance over time and so require stronger medications to successfully manage acute pain that’s common after many surgical procedures.
Martin said some surgery patients cannot easily be taken off such medications without going through physical withdrawal symptoms. “It’s a little more nuanced issue than just going for total opioid-free surgery,” Martin said.
While illicit drugs like fentanyl have overtaken prescription opioids as the primary driver of the opioid epidemic, prescribed opioids remain a significant contributor. Nearly a quarter of all overdose deaths and more than a third of all opioid-related deaths in 2017 were related to using prescription opioids, according to the Centers for Disease Control and Prevention.
Providers and lawmakers in recent years have worked to address opioid overprescribing through greater education for clinicians as well as through laws in several states limiting prescriptions to just a few days’ supply.
As a result the number of written opioid prescriptions fell from a record set in 2012 of more than 255 million to more than 191 million by 2017, according to the CDC.
Improving prescribing practices
Yet some contend the robust number of prescriptions written in the U.S. still reflects an overprescribing problem that points to the need for even greater improvement in prescribing practices.
“Culturally, providers have always been heavy-handed with narcotics,” the Cleveland Clinic’s Chiang said. “We’re fighting against tradition, against the way things have been done for years and years in this country.”
Clinical concerns notwithstanding, Chiang’s point about breaking long-standing practices on managing pain may help to explain why even in the middle of the worst drug epidemic on record more hospitals don’t stop prescribing opioids to postoperative patients with no other pain issues or current dependence on such drugs.
Dr. John Daly, co-chair of the Patient Education Committee at the American College of Surgeons, said the decision whether or not to prescribe opioids has to be weighed with an understanding of both the benefits and risks for the patient.
“The benefit of opioids is that they do reduce pain,” Daly said. “If a surgeon is going to utilize opioid-free surgery for some procedures then they would need to adopt other mechanisms for reducing pain, because it’s not the goal to simply eliminate opioids.”
But many hospitals say the benefits of successfully managing pain for common surgical procedures without opioids can go beyond minimizing the risk of patients becoming addicted.
Dr. Charles Luke, an anesthesiologist and system director of the Acute Interventional Perioperative Pain Service at UPMC in Pittsburgh, said his system has cut in half the number of opioid prescriptions that surgeons write. He said the reduction in opioid use has been shown to decrease hospital lengths of stay, recovery times and opioid-related complications.
“Overall, long-term opioid reduction often leads to improved patient well-being,” Luke said. “The estimated cost savings to the health system is huge but not well-quantified.”
Mayo’s Granberg believes that not providing opioids for many common surgical procedures is a feasible and achievable goal for any healthcare provider. She expects more hospitals to adopt such policies as data on the efforts grows.
“I think that our communication has improved significantly in light of the opioid epidemic to say we’re going to aim to send them home without opioids,” Granberg said.

ISS thumbs down on reappoint of Takeda chief Weber

Advisory firm Institutional Shareholder Services (ISS) reportedly will recommend against the reappointment of Takeda (NYSE:TAK) President & CEO Christophe Weber according to Nikkei. It will support a shareholder proposal for the adoption of a clawback clause that would recoup executive pay in the event of large losses and the disclosure of individual directors’ pay.
The company’s annual meeting is scheduled for June 27.

AbbVie Has Long-Term Data from Phase 3 Studies in Rheumatoid Arthritis

– Data from SELECT-EARLY and SELECT-COMPARE show a significantly higher proportion of patients treated with upadacitinib monotherapy or in combination with methotrexate (MTX) maintaining clinical remission compared with MTX or adalimumab plus MTX, respectively, at 48 weeks1,2
– Findings from an integrated safety analysis across five studies in the SELECT Phase 3 clinical program support the well-characterized safety profile of upadacitinib in patients with moderately to severely active rheumatoid arthritis3
– Upadacitinib, an investigational oral agent engineered by AbbVie to selectively inhibit JAK1, is being studied as a once-daily therapy in moderately to severely active rheumatoid arthritis and across multiple other immune-mediated inflammatory diseases