Search This Blog

Wednesday, October 2, 2019

Organovo pops on merger offer from firm led by co-founder

Organovo (ONVO +5.6%) is higher after receiving a formal merger proposal from Viscient Biosciences, whose CEO, Keith Murphy, was a co-founder of Organovo and the company’s CEO and Chairman during 2007-17.
“Having already established the paradigm for drug discovery in 3D tissue in liver, Viscient now has the potential to efficiently use the other tissues in Organovo’s portfolio to develop drugs for additional high-value indications,” Murphy says, adding a combined company “could be valued in the hundreds of millions over the next couple of years.”
Viscient envisions the combined company could be as much as 43% owned by ONVO’s existing shareholders and the rest owned by Viscient shareholders.
https://seekingalpha.com/news/3503488-organovo-pops-merger-offer-firm-led-former-founder

ApolloMed adds 145K members with new management services agreement

Health management firm Apollo Medical Holdings (NASDAQ:AMEH) has entered into a new management services agreement that will add about 145,000 new members.
The deal with an independent practice association is effective Jan. 1.
The IPA group serves members in three main markets in Southern California: South Los Angeles, San Fernando Valley, and Antelope Valley.
That “significantly” bolsters member under management, says Chairman/Co-CEO Kenneth Sim, adding that “Consistent with our strategic plan, this agreement also brings the opportunity to further scale our business model and realize additional efficiencies.”
https://seekingalpha.com/news/3503515-apollomed-adds-145k-members-new-msa

EyePoint insert for uveitis gets permanent J-code

EyePoint Pharmaceuticals (NASDAQ:EYPT) jumps 4.8% in after-hours trading after announcing that a permanent and specific J-code for Yutiq (fluocinolone acetonide intravitreal implant) 0.18 mg three-year micro-insert for chronic, non-infectious uveitis affecting the posterior segment of the eye is now in effect.
The code, J7314, was issued by the CMS one quarter earlier than under prior CMS policy.
https://seekingalpha.com/news/3503572-eyepoint-insert-uveitis-gets-permanent-j-code

Janssen files for new indication for Spravato

Janssen (NYSE:JNJ) has submitted a supplemental New Drug Application to the FDA, for a new indication for Spravato (esketamine) nasal spray, for the rapid reduction of depressive symptoms in adult patients with major depressive disorder who have active suicidal ideation with intent.
That is a population that historically has been excluded from antidepressant clinical trials, the company notes.
The sNDA is based on results from the Phase 3 ASPIRE I and II trials, which evaluated efficacy and safety of Spravato vs. placebo in this patient population.
The FDA approved Spravato in conjunction with an oral antidepressant for treating treatment-resistant depression in adults on March 5.
https://seekingalpha.com/news/3503559-janssen-files-new-indication-spravato

Progenics activist calls buyout deal ‘value-destructive’

Lantheus Holdings’ (LNTH -20.9%) all-stock deal to buy Progenics Pharmaceuticals (PGNX +9.8%) substantially undervalues the target company, says one of Progenics’ biggest shareholders.
In a filing, Velan Capital says selling the company at a “massive discount” (about $519.6M overall) is an abandonment of fiduciary duties.
It’s a “value-destructive” deal that comes in the middle of Velan’s consent solicitation to reconstitute a majority of the board, Velan says.
“We believe Progenics’ announcement today to sell the Company to Lantheus substantially undervalues the Company and is a transparent and shameful maneuver attempting to prevent the voices of stockholders from being fairly heard,” Velan writes.
It’s seeking to add five fully independent directors to the board before the Lantheus transaction moves forward, and wants to replace CEO Mark Baker.
https://seekingalpha.com/news/3503507-progenics-activist-calls-buyout-deal-value-destructive

WW tanks 10% after Novo Nordisk, Noom unveil weight management plan

WW International (WW -10%) shares have been sliding steadily lower through the day after drugmaker Novo Nordisk (NVO -1.4%) and behavior management company Noom said yesterday they were teaming up to develop programs to help people with obesity achieve and maintain weight loss.
Noom has developed a weight-loss app and a personalized meal-planning service it says already is used by 45M people worldwide that helps overweight people make behavioral changes that can help them slim down.
Novo says it has completed an eight-month pilot that combined Noom’s behavior change programs with its “more than 95 years of experience in helping people living with chronic diseases.”
The companies say their collaboration initially will make solutions for behavior change and education available to people with obesity in the U.S.
https://seekingalpha.com/news/3503508-ww-tanks-10-percent-novo-nordisk-noom-unveil-weight-management-plan

Medicare spends more than $6 billion on secondary fractures

Medicare could save billions of dollars if secondary fractures could be prevented with improved osteoporosis screening, according to a new National Osteoporosis Foundation report conducted by Milliman.
Milliman used administrative medical claims data from a Medicare Limited Data Set to identify new not associated with a high-trauma event among Medicare fee-for-service beneficiaries in 2015. The postfracture follow-up period to assess the economic and clinical burden associated with fractures lasted two to three years.
The researchers found that about 4 percent of Medicare beneficiaries suffered a fracture in 2015. Spine and hip fractures were the most common types identified, accounting for 40 percent of all osteoporotic fractures. More than 40 percent of patients with a new osteoporotic fracture were hospitalized within one week after the fracture (among those with a hip fracture, 90 percent were hospitalized). More than one in seven Medicare patients with a new osteoporotic fracture suffered another fracture within 12 months of the initial fracture, and nearly one in five with a new osteoporotic fracture developed a pressure ulcer during follow-up. One in five Medicare beneficiaries died within 12 months following a new osteoporotic fracture. In the year after a new osteoporotic fracture, were more than twice the costs incurred in the 12-month period prior to the fracture for the same beneficiary, yielding an incremental annual medical cost of $21,800 for a new osteoporotic fracture. An estimated 307,000 Medicare fee-for-service beneficiaries had a subsequent fracture during two- to three-year follow-up, which the researchers estimated accounted for $6.3 billion in allowed cost to Medicare. Fewer than one in 10 female Medicare beneficiaries were evaluated for osteoporosis with a bone mineral density test within six months of a new fracture.
“Increased focus on the identification and management of individuals who have experienced an osteoporotic fracture through a secondary fracture prevention program may lead to reduced rates of subsequent and result in to payers, such as Medicare,” the authors write.

Explore further
High postural sway doubles older women’s fracture risk

More information: Research Report: Medicare Cost of Osteoporotic Fractures