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Tuesday, July 16, 2019

Arrowhead’s ARO-ANG3 an Orphan Drug in U.S. for cholesterol disorder

Arrowhead Pharmaceuticals (NASDAQ:ARWR) is up 1% after hours on the heels of Orphan Drug designation in the U.S. for RNAi therapeutic ARO-ANG3 for the potential treatment of homozygous familial hypercholesterolemia (HoFH), an inherited disorder characterized by excessive levels of “bad” cholesterol in the blood.
Phase 1 study is in process.

Puma Bio up after hours on Nerlynx nod in Canada

Health Canada approves Puma Biotechnology’s (NASDAQ:PBYI) NERLYNX (neratinib) for the extended adjuvant treatment of women with early-stage hormone receptor-positive, HER2-overexpressed/amplified breast cancer within one year after completion of adjuvant therapy with Roche’s Herceptin (trastuzumab).
Licensee Knight Therapeutics will commercialize.
Shares are up 5% after hours.

Abbott to hike production of lower-cost glucose monitors as diabetes soars

Abbott Laboratories plans to ramp up manufacturing capacity for its lower-cost continuous glucose monitor, the FreeStyle Libre, by three to five times in the next few years, aiming to reach millions more patients worldwide, the company told Reuters.

Abbott executives said the increase in manufacturing capacity will begin in the second half of this year and make room for the expected U.S. launch of the FreeStyle Libre 2. This next-generation device has been approved in Europe and is now under U.S. regulatory review.
Abbott’s plans for Libre, its fastest-growing diabetes product, used by 1.5 million people worldwide, will be in focus when the company reports quarterly earnings on Wednesday.
Jared Watkin, Abbott’s senior vice president for Diabetes Care, said in an interview that scale is a “huge part” of the company’s strategy for its glucose monitors. “When you’re making disposable diagnostic products, the more you can make, the lower the cost you can produce them at.”
While the Libre 2 has more features, including alarms for when blood sugar levels swing too low or high, Abbott plans to keep the U.S. price the same as its predecessor, Watkin said.
Abbott started in diabetes care as a maker of inexpensive test strips and glucose meters. More recently, the company has sought to expand access to its so-called continuous glucose monitoring (CGM) devices – traditionally sold to type 1 diabetics in markets with generous insurance coverage.
“It’s not good enough to bring this to a small, wealthy population. Diabetes is such a global epidemic that you need to bring products that can really make a dent in that,” Watkin said.
Launched in Europe in 2014 and in the United States three years later, the FreeStyle Libre allows people with diabetes to track blood sugar levels without multiple daily finger sticks.
A sensor attached to the back of the upper arm uses a thin filament under the skin to measure glucose every minute. Users check their blood sugar levels throughout the day by waving a reader, or smartphone, over the sensor. Major competitors Medtronic Plc and Dexcom Inc critique the current Libre’s lack of automatic alerts that can help diabetics manage their disease. Yet they also are taking steps to introduce cheaper models themselves, executives told Reuters.
Libre’s sales are expected to reach $1.5 billion (£1.2 billion) this year, the company said. In April, Goldman Sachs estimated the global CGM market could reach $5 billion by 2021, up from $3.7 billion in 2019. Goldman projected Abbott’s 2021 sales at $2.7 billion compared to $1.7 billion for Dexcom and $894 million for Medtronic.
‘SCRATCHING THE SURFACE’
In the past, CGMs were used almost exclusively by type 1 diabetics, whose bodies do not make insulin and who must inject themselves with the blood-sugar regulating hormone to survive.
Increasingly, people with type 2 diabetes – the kind driven by obesity, lack of exercise and genetics – must also closely monitor their blood glucose and use insulin to manage their disease when it is not controlled by other medications and lifestyle changes.
For now, Libre users include 1 million type 1 diabetic patients and half a million type 2. That’s a tiny sliver of the 425 million people with diabetes worldwide.
Although not all diabetics need glucose monitors, “there is an element of scratching the surface at this point,” Watkin said. “The need to invest and bring up capacity is, we believe, going to be an ongoing activity for us.”
Two 14-day Libre sensors, a month’s supply, retail for $109. Abbott says most of its patients are commercially insured, and many pay as little as $10 out of pocket.
In the United States, the company says, more than half of people in commercial health plans are covered, as well as any eligible diabetic person on Medicare, the federal program for the elderly and disabled. The device is also approved in 45 other countries, including Germany, Japan, Brazil, China and the United Arab Emirates.
Medtronic told Reuters it offers a discounted price of $345 per month for uninsured patients. The company estimates that the typical insured patient pays $50 a month. Medicare does not cover the device.
Dexcom’s G6 sensors retail online, with a discount, at around $350 for a month’s supply. Dexcom says 98 percent of all U.S. private insurers cover the device, and patients covered by commercial insurance pay an average of $50-$80 per month for sensors through pharmacies or durable medical equipment suppliers. It is covered by Medicare.
Libre’s 14-day sensor is also longer-lasting. Dexcom’s sensors work for 10 days, and Medtronic’s for up to 7. Abbott was also the first company to introduce a product that can be used without routine finger stick tests to validate the sensor’s readings – a feature Dexcom later matched and Medtronic has not.
Dr. Roy Beck, an endocrinologist at the Jaeb Center for Health Research in Tampa, Florida, said that Abbott’s FreeStyle Libre is “an excellent sensor” but not as accurate at detecting very low blood sugar as the devices from Dexcom, Medtronic or an implantable CGM made by Senseonics.
That makes it less desirable for patients for whom this is a major issue, he said. Beck’s centre has received research funding from Abbott and Dexcom.
Medtronic and Dexcom executives say the current Libre does not compare with their devices when it comes to features such as alerting users to dangerous blood sugar changes and providing comprehensive trend data.
“It’s the cheapest, but it’s not exactly in the same category,” said Mike Hill, vice president and general manager of Medtronic’s sensor business.
Abbott countered that its sensor has best-in-class accuracy, and noted that the next-generation Libre 2 does have optional alarms.
Still, Medtronic is considering making a cheaper sensor for patients who don’t need all the features of its current continuous monitor, Hill said. And next year, Dexcom plans to launch a cheaper, smaller, 14-day sensor developed in partnership with Verily, Alphabet Inc’s life sciences division.
Dexcom Chief Executive Kevin Sayer acknowledged that Abbott’s pricing strategy will affect the global market over time, and that Dexcom expects its own prices to come down. “We’ve planned for this,” he said.

Legal battles in focus as J&J reports results

Investors this morning will have a chance to hear management’s thoughts on Johnson & Johnson’s (NYSE:JNJ) various legal battles, as well as possible action on drug pricing by officials in Washington.
Lawsuits over the opioid crisis are particular worrying, with lawyers for the state of Oklahoma on Monday comparing the drugmaker to a cartel kingpin for fueling the U.S. opioid epidemic.
Additionally, JNJ shares closed down more than 4% on Friday as the DOJ pursued a criminal investigation into whether the healthcare giant lied about the possible cancer risks of its talcum powder.

Novel, Orally Dissolving Agent May Offer More Rapid Migraine Pain Relief

An orally dissolving tablet (ODT) formulation of an acute migraine drug in development may offer more rapid relief from migraine pain, new research suggests.
In a large, double-blind, phase 3 trial, the small molecule calcitonin gene–related peptide (CGRP) receptor antagonist rimegepant (Biohaven Pharmaceuticals) provided significantly greater freedom from pain at 2 hours than placebo among adults with acute migraine.
If approved, this speed of onset could be an advantage for patients with migraine, lead investigator Richard Lipton, MD, professor of neurology, psychiatry, and behavioral sciences and the Edwin S. Lowe chair of neurology at Albert Einstein College of Medicine, New York City, said.
“In contrast to the currently available ODT medications for migraine, rimegepant ODT actually gets absorbed more quickly,” he told Medscape Medical News.
This formulation can reach peak levels in the blood 30 minutes faster than the rimegepant tablet, with a reported Tmax of 1.5 hours, in contrast to the 2-hour Tmax reported a prior phase 1 study, which is “something patients really care about,” Lipton said.
“People ask me if 30 minutes or 1 hour really makes a difference. I tell them to ask someone with terrible pain if it matters how long it takes to get rid of it. It matters,” he added.
The findings were presented here at the American Headache Society (AHS) Annual Meeting 2019 and were simultaneously published online July 13 in the Lancet.

Faster, More Convenient

Lipton noted that greater convenience is another potential advantage. Because the ODT formulation can be taken without water, a person who, for example, is attending a meeting at work and feels a migraine coming on could take the formulation more discreetly than would be the case if that person had to swallow a tablet with water, Lipton said. The ODT formulation would also be convenient, for example, for a patient who is driving a car at the time an attack occurs.
In the study, known as Study 303, the investigators evaluated 1351 adults with episodic migraine.
The participants (85% women; mean age, 40 years) reported having from two and eight severe migraine attacks per month. Rimegepant or placebo was used to treat a single attack. Use of preventive medications with stable doses was allowed.
One of the primary outcomes, freedom from pain at 2 hours, was achieved by 21% of the rimegepant group and 10% of the placebo group, which was significantly different (P < .0001).
Another primary outcome, freedom from most bothersome migraine symptom at 2 hours, was reported by 35% of the rimegepant group vs 27% of the placebo group (P = .0009).
Photophobia, nausea, and phonophobia were the most bothersome symptoms reported in the study.
The proportion of patients who achieved the primary outcomes was similar to the proportion reported in Study 302, as previously reported by Medscape Medical News.

Unique Study Design

Lipton said he was surprised the investigators found statistically significant differences on 21 consecutive factors when comparing rimegepant to placebo. “That’s never happened before,” he noted.
A “gatekeeper approach” was used to evaluate each factor on its own, but only if the prior factor was significant in comparison with placebo. In other words, because freedom from pain was significant compared with placebo, the researchers could move on to assess most bothersome symptom. If this endpoint was also significant, they could proceed to another factor, and so on, until a given endpoint was not significant.
Pain relief at 60 minutes, freedom from functional disability, and use of rescue medications are examples of these additional factors used in the study.
Lipton said he was unsure why the manufacturer is simultaneously developing a 75-mg tablet and a 75-mg ODT formulation. He noted that the company is developing another small molecule CGRP receptor antagonist, BHV-3500, as a nasal spray, “which might be even quicker than the ODT clinically.
“Formulation choice is clinically desirable,” he said.
Forty million Americans experience migraine.
“For some people, the only thing that matters is how quickly it works, and they might use the nasal spray. There might be other people who don’t want to spray anything up their nose, and they can use the ODT,” Lipton said.

Another Tool in the Toolbox

Commenting on the findings for Medscape Medical News, Kathleen Digre, MD, professor of neurology and ophthalmology at the John A. Moran Eye Center, Salt Lake City, Utah, who is president of the AHS, noted the novelty of the drug’s formulation.
“This is the first time I’m learning about this new study on the orally dissolving tablet. But, as a clinician, I need as many tools in my toolbox as I can get,” said Digre, who is also chief of the Division of Headache and Neuro-ophthalmology at the University of Utah in Salt Lake City.
Some patients with migraine will like an orally dissolvable tablet, she added.
“The other thing I was interested in is the Tmax was faster, so there is actually a pharmacologic difference in this ODT tablet,” Digre said. She added that the shorter Tmax time could be an advantage.
“I’m going to have to try it [with my patients],” she said, although she noted that the agent is not yet available.
The manufacturer notes on its website that it submitted a new drug application to the US Food and Drug Administration for rimegepant in the second quarter of 2019.
The study was funded by Biohaven. Lipton is a consultant for and owns stock options in Biohaven. Digre has reported no relevant financial relationships.
American Headache Society (AHS) Annual Meeting 2019: Abstract IOR05. Presented July 13, 2019.
Lancet. Published online July 13, 2019. Abstract

Arbutus up after hours on encouraging data on HBV candidate AB-506

Arbutus Biopharma (NASDAQ:ABUS) perks up 3% after hours in reaction to positive data from a Phase 1a/1b clinical trial evaluating HBV capsid inhibitor AB-506 in healthy volunteers and two cohorts with chronic hepatitis B virus (HBV) infection.
In the healthy subjects, no serious treatment-related adverse events were reported. Liver function test remained normal throughout the 10-day dosing period.
In the hepatitis B groups, mean HBV DNA decreased 100-fold to ~630-fold (160 mg, 400 mg doses) at day 28 while HBV RNA decreased ~250-fold in both dose cohorts.
On the safety front, four HBV subjects experienced life-threatening flares in the liver enzyme ALT (biomarker for liver damage) which returned to baseline after treatment was completed or discontinued. Another liver enzyme, AST, spiked to a lesser degree. None met the criteria for induced liver injury since bilirubin and liver synthetic function remained normal.
Detailed results will be submitted for presentation at a future scientific conference.

Stifel: Atreca Offers Attractive Oncology Drug Development Play

The oncology drug development space holds “tremendous scarcity value for novel targets,” and Atreca Inc’s BCEL 0.61% stock offers an investment opportunity at an attractive valuation, according to Stifel.

The Analyst

Stephen Willey initiated coverage of Atreca with a Buy Rating and $28 price target.

The Thesis

Atreca has a highly differentiated approach to antibody drug discovery that moves completely away from the biologically or genetically derived hypotheses that are traditionally used to inform target selection, Willey said in a Monday initiation note. (See his track record here.)
Atreca’s proprietary platform technology is used to actively interrogate the active human immune response to access a large and underexploited universe of actionable solid tumor targets that are undiscoverable with conventional approaches, the analyst said.
The company’s lead preclinical antibody candidate ATRC-101 represents this scarcity value, as neither its target antigen nor mechanism of action were previously characterized within oncology, he said.
Willey said he expects the preliminary P1b data that potentially confirms ATRC-101’s efficacy and safety to result in a significant re-rating of Atreca’s stock, as such data could offer validation of the asset as well as the platform.
The company has guided to a strategic drug discovery partnership in 2020 and an IND filing for a second pipeline candidate in 2021. “We expect pipeline/collaborative optionality to remain an integral part of the longer-term narrative here,” the analyst said.