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Wednesday, January 8, 2020

Blueprint Medicines initiates U.S. application for pralsetinib

Blueprint Medicines (NASDAQ:BPMCinitiates its rolling NDA filing for pralsetinib (BLU-667) for RET fusion-positive non-small cell lung cancer (NSCLC). It expects to complete the submission this quarter.
Topline data from a Phase 1/2 clinical trial, ARROW, showed a 61% overall response rate (ORR) per independent review. The ORR was 73% in treatment-naïve patients. Median duration of response was not reached at data cutoff. No new safety signals were reported.
Complete results will be submitted for presentation at a future medical conference.
A Phase 3 study, AcceleRET Lung Trial, in treatment-naïve RET fusion-positive NSCLC should launch in the coming weeks.
Pralsetinib is an orally available selective inhibitor of the proto-oncogene RET (rearranged during transfection) which plays a key role in the progression of a range of cancers including NSCLC and medullary thyroid cancer.
Shares down 1% premarket.

Arcutis eyes $100M IPO to bankroll dermatology programs

Dermatology player Arcutis Biotherapeutics set up shop in 2016 but stayed under the radar until early last year. Now, with a trio of clinical-stage programs and more than $160 million in the bank, the company is looking to hit the street with a $100 million IPO.
The Los Angeles area biotech is taking aim at validated targets so it can bring treatments for skin diseases and disorders to market quickly, the company says. Arcutis is led by CEO Frank Watanabe, an industry vet who’s spent time at Eli Lilly and Amgen as well as smaller biotechs.
The IPO haul will push Arcutis’ lead programs through phase 3. Both are topical drugs that target the inflammation-promoting enzyme phosphodiesterase type 4 (PDE4).

Arcutis will test ARQ-151, a cream, in a phase 3 study in psoriasis and a phase 2b study in atopic dermatitis, or eczema, the company said in a securities filing Monday.
The company will also move ARQ-154, a foam formulation of Daliresp (roflumilast)—marketed in pill form by AstraZeneca for patients with chronic obstructive pulmonary disease (COPD)—into phase 3 studies in seborrheic dermatitis, a skin condition that affects the scalp, as well as scalp psoriasis. AstraZeneca markets roflumilast tablets under the name Daliresp for the treatment of COPD. It will also test a midstage asset, JAK1 inhibitor ARQ-252, in hand eczema.
Although new treatments for diseases like psoriasis and eczema have come to market over the years, the “vast majority” of dermatology patients haven’t benefited from them, said Bhaskar Chaudhuri, Ph.D., a co-founder of Arcutris, at the company’s launch.
“[They] continue to be treated by older therapies that offer inadequate efficacy, that do not target specific disease mediators, or that carry with them substantial safety and tolerability issues,” he said.
Arcutis is here to fill that gap: “Dermatologists and patients badly need innovative topical treatments that directly target immunological mediators of inflammatory diseases with high local skin efficacy, low systemic safety risks, the ability to use them chronically, and a good risk/benefit ratio. Arcutis is focused on addressing these important needs,” Watanabe said at the time.
Arcutis counts the likes of OrbiMed, RA Capital Management and Bain Capital Life Sciences among its backers. It raised its latest private round, a $94.5 million series C, in October, adding Goldman Sachs, Pivotal BioVentures, Omega Funds, funds managed by BlackRock, Vivo Capital and HBM Healthcare Investments to the fold. That round was earmarked for the phase 3 program of ARQ-151. Arcutis expects to report top-line data for that study in plaque psoriasis in the first half of 2021, the company said at the time.


CRISPR Technology Headed to Clinical Trials

Although much of the recent attention to CRISPR gene editing has been negative, with a focus on Chinese researcher He Jiankui’s use of the technique to modify the genomes of a set of twins and his subsequent arrest and prison sentence, CRISPR still remains one of the great hopes for treating diseases. Some of the focus appears to be shifting toward a more positive story, Boston-based Editas Medicine’s clinical trial of a CRISPR technology in patients with a rare inherited eye disorder, as well as other companies’ efforts.
Editas is developing EDIT-101 in partnership with Allergan to treat Leber congenital amaurosis type 10 (LCA10). There are currently no approved therapies for the disease.
Under their partnership, Allergan reserves the right to in-license up to five genome editing programs for eye diseases, including EDIT-101. Editas is entitled to possible milestone payments and royalties for each program.
Charlie Albright, chief scientific officer at Editas, told the Boston Business Journal that editing the genome was the only way to achieve a “potentially transformational and durable change” for patients with the disease. “It’s a super exciting time to be part of the first in vivo experimental medicines going into the clinic.”
Some of the concerns raised by He Jiankui’s research—that there may be unintended off-target gene edits still remain. However, unlike with He Jiankui’s research, the edits are not to the patient’s germlines. This means that any changes to the genomes in patients with LCA10 won’t be transferred to their children. Also, another reason early successes in gene editing are in optical diseases is the ability to inject the genes and the CRISPR packages directly into the intended organ, in this case, the eyes.
For example, Intellia Therapeutics, another company working on CRISPR-based therapies, is focusing on targeting transthyretin amyloidosis (ATTR). This is a liver disease, and the approach requires a systemic dosing, meaning the virus carrying CRISPR is spread around the body before finding its target.
John Leonard, chief executive officer of Intellia, however, argues the risk is worth it. “The idea of curative therapy is the ultimate objective. You can potentially treat a whole series of tumors that are untreatable at this point.”
Still, investors are showing a significant interest in the companies leading the way, with CRISPR Therapeutics shares up 113% last year, Editas up 30% and Intellia up 7%.
CRISPR Therapeutics, however, plans to make edits outside the body and in well-understood diseases like beta-thalassemia and sickle cell disease. “If it’s ex vivo, we will know exactly what changes we’re making,” said Sam Kulkarni, CRISPR’s chief executive officer. “Then as we build the company, our expertise, and our market cap, and can afford to spend more on this, we can do more and more and we can improve the platform to make smaller Cas9, brand new delivery technologies.”
Cas9 is the enzyme used most commonly in CRISPR to clip out the target DNA sequence.
Kulkarni argues that 60% of the opportunity in the field is in editing genes outside the body. Working with Vertex Pharmaceuticals, CRISPR Therapeutics plans to launch a clinical trial every six months. Three of them will be in cancer, attempting to edit immune cells to attack solid tumors. It also has plans to create an artificial pancreas for diabetic patients.
Silvan Türkcan, an analyst with Oppenheimer, notes that the share prices seen in CRISPR companies are largely related to their partnerships. Previously, these have been difficult for investors to model, but now the companies are starting to behave more like traditional biotech stocks, which is to say, moving up or down based on data readouts.
“We need to see the promise of CRISPR—that you can develop a superior product to gene therapy, precisely—holds up,” Türkcan said.
Editas has also launched investigational new drug (IND) enabling activities for EDIT-301, a CRISPR therapeutic to treat sickle cell disease and beta-thalassemia. Editas has collaborations and deal with Juno Therapeutics, a Celgene company that is now part of Bristol-Myers Squibb. Those deals tend to focus on using CRISPR to engineer T-cells to treat cancer. Editas also has a research and cross-licensing deal with BlueRock Therapeutics, and with AskBio.

Novo Nordisk Wins FDA Approval for Mealtime Insulin Treatment for Children

Pediatric diabetes patients have a new insulin option following a new indication approval of Fiasp (insulin aspart injection) as a new mealtime insulin option for children.
On Monday, the U.S. Food and Drug Administration (FDA) approved the Novo Nordisk-made drug for use in children. The company said Fiasp is the “first and only fast-acting mealtime insulin injection that does not have a pre-meal dosing recommendation.” With the latest approval, Fiasp has been approved for children and adults in three different dosing options: multiple daily injections (MDI), continuous subcutaneous insulin infusion pumps and intravenous infusion under supervision by a healthcare professional.
Todd Hobbs, vice president and U.S. chief medical officer of Novo Nordisk, said it can be difficult for parents of children with diabetes to manage the “inevitable blood sugar spikes around mealtimes.” Hobbs, who is diabetic, also has a son with type 1 diabetes and is well-aware of the difficulties of managing blood sugar.
“Children can be unpredictable and having the option of a fast-acting insulin that doesn’t require pre-meal dosing like Fiasp is a welcome development for the diabetes community,” Hobbs said in a statement.
Each year, there are approximately 18,000 cases of type 1 diabetes diagnosed annually. Managing diabetes can be challenging for parents and caregivers given it is hard to know exactly how much or how quickly their children will eat, making mealtime insulin dosing difficult. Conventional rapid-acting insulins must be administered ahead of meals, which requires some guesswork to dose properly, and children living with diabetes may not achieve adequate blood sugar control, Novo Nordisk said in its announcement.
Fiasp won approval based on data from the onset 7 clinical trial, which confirmed the safety and efficacy of the medication in children. The 26-week trial includes 777 children with type 1 diabetes. Fiasp is administered at the beginning of a meal or within 20 minutes after starting a meal.
For Novo Nordisk, the newest indication for Fiasp comes about a week after the company launched its My$99Insulin Program. The program is aimed at ensuring diabetic patients will have access to insulin. The financial program comes on the heels of intense criticism aimed at insulin manufacturers, particularly Novo Nordisk, Eli Lilly and Sanofi, over the rising costs of the life-saving medication. Last year, a cost analysis of insulin prices showed the price of insulin doubled between 2012 and 2016. According to the report, an individual with Type 1 diabetes paid on average $2,864 for insulin in 2012 but that jumped to $5.705 by 2016. With numerous stories of rationing of insulin due to cost concerns, members of Congress lashed out at the drugmakers at the end of 2019 over the costs. As the 2020 election nears, the price of insulin and other life-saving drugs will certainly become a campaign issue.
In November, the U.S. Food and Drug Administration announced new draft guidance to facilitate the development of low-cost insulin products. The agency said its recommendations “may result in a more efficient development program that could ultimately bring biosimilar or interchangeable insulin products to the market more quickly.”

Walgreens profit misses estimates on pharmacy weakness

Drugstore chain Walgreens Boots Alliance Inc posted a quarterly profit that missed expectations on Wednesday, hurt by lower payments from insurers on drugs sold, sending shares down nearly 4% before the bell.

Sluggish retail growth, disappointing performance of Boots U.K. unit and low reimbursement rates for drugs have pushed Walgreens’ shares down 15.3% in the last year, making it the worst performer on Dow Jones Industrials Average index.
Sales in the company’s U.S. retail pharmacies missed estimates, despite the company selling more prescription drugs, as continued low reimbursement rates ate into the unit’s profit.
The unit’s sales rose 1.6% to $26.1 billion, missing estimates of $26.18 billion, according to IBES data from Refinitiv. Gross profit from the unit fell 5.2%.
Excluding items, the company earned $1.37 per share, missing estimates of $1.41. Net income attributable to Walgreens fell to $845 million, or 95 cents per share, in the first quarter ended Nov. 30, from $1.12 billion, or $1.18 per share, a year earlier. Revenue rose to $34.34 billion from $33.79 billion.

NMC Health, Finablr stocks hit after major investors sell shares

Shares in NMC Health and Finablr plunged after two major shareholders launched a discounted share sale in the London-listed groups, weeks after NMC was hit by a short-selling attack by U.S. firm Muddy Waters.

The healthcare firm’s vice-chairman Khaleefa Al Muhairi and its second-largest shareholder Saeed Al Qebaisi have together sold NMC shares worth 375 million pounds.
The deal was priced at 1,200 pence per share, a bookrunner said on Wednesday, adding that the sale was oversubscribed. The price is at a discount of about 20% to NMC’s last close of 1,494.5 pence in London.
Qebaisi and Muhairi have also sold shares worth about $72 million in payments firm Finablr, which is co-chaired by Bavaguthu Raghuram Shetty, also the founder and co-chairman of NMC.
Shares in Finablr, whose ransomware-hit Travelex unit is also chaired by Muhairi, were sold at 135 pence per share, a discount of nearly 13%, sending shares to a record low.
NMC shares were down 15.8% at 1,258.5 pence.
The investors sold the shares to repay some of their debt and the debt of some corporate entities owned by them, the bookrunner said, adding that the move will also remove the pledge on NMC shares under a borrowing agreement with two banks.
The sale was not related to NMC’s operating performance or long-term prospects, the firm said in a statement, adding the shareholders “remain supportive”.
Finablr was not immediately available for comment.
Following the transactions, Muhairi will retain a 12.5% stake in NMC while Qebaisi will keep a 4.7% holding, the bookrunner said, adding that they jointly hold roughly an additional 7% in NMC through Infinite Investment.
Reuters reported https://in.reuters.com/article/us-nmc-health-m-a-exclusive/exclusive-two-groups-one-backed-by-chinas-fosun-bid-for-nmc-health-stake-sources-idINKCN1VB20R last year that two groups were bidding for a 40% stake in NMC, which was jointly owned by UAE-based businessman Qebaisi, Muhairi, and Infinite Investment.
Reuters could not immediately reach the investors for comment.
NMC, the United Arab Emirates’ largest private healthcare provider, has launched an independent review of its finances after short-seller Muddy Waters questioned the value of its assets and cash balance while announcing a short position.
Earlier this week NMC said the review will initially assess its cash balances as of Dec. 15.
Short selling involves borrowing an asset and selling it with the aim of buying it back at a cheaper price for profit.
Muddy Waters, founded by American Carson Block, is known in financial markets for declaring short equity positions on the basis of in-house research.
At Wednesday’s session low, NMC, which has denied the allegations, had lost nearly 3 billion pounds in market value since the report was launched.

More healthcare new coverage ahead of JPM20

Agilent (NYSE:A) initiated with Overweight rating and $100 (18% upside) price target at Wells Fargo.
Avantor (NYSE:AVTR) initiated with Overweight rating and $22 (17% upside) price target at Wells Fargo. Shares down 1% premarket.
Axonics Modulation Technologies (NASDAQ:AXNX) initiated with Buy rating and $38 (41% upside) price target at SunTrust.
Bio-Rad Laboratories (NYSE:BIO) initiated with Overweight rating and $430 (13% upside) price target at Wells Fargo.
BioLife Solutions (NASDAQ:BLFS) initiated with Overweight rating and $23 (44% upside) price target at Stephens.
BioTelemetry (NASDAQ:BEAT) initiated with Buy rating and $58 (21% upside) price target at SunTrust.
Bruker (NASDAQ:BRKR) initiated with Overweight rating and $60 (18% upside) price target at Wells Fargo.
Charles River Labs (NYSE:CRL) initiated with Overweight rating and $180 (16% upside) price target at Wells Fargo.
Cryoport (NASDAQ:CYRX) initiated with Overweight rating and $21 (24% upside) price target at Stephens.
Danaher (NYSE:DHR) initiated with Overweight rating and $170 (9% upside) price target at Wells Fargo. Shares up 1% premarket.
Globus Medical (NYSE:GMED) initiated with Buy rating and $67 (16% upside) price target at SunTrust.
Halozyme Therapeutics (NASDAQ:HALO) initiated with Buy rating and $24 (33% upside) price target at Goldman Sachs.
Hologic (NASDAQ:HOLX) initiated with Equal Weight rating and $57 (9% upside) price target at Wells Fargo.
Horizon Therapeutics (NASDAQ:HZNP) resumed with Neutral rating and $35 (4% downside risk) price target at Goldman.
ICON Public Limited Company (NASDAQ:ICLR) initiated with Equal Weight rating and $180 (7% upside) price target at Wells Fargo.
Illumina (NASDAQ:ILMN) initiated with Underweight rating and $300 (9% downside risk) price target at Wells Fargo.
IRhythm Technologies (NASDAQ:IRTC) initiated with Buy rating and $102 (50% upside) price target at SunTrust.
Kodiak Sciences (NASDAQ:KOD) initiated with Buy rating and $115 (71% upside) price target at Roth Capital.
Labcorp (NYSE:LH) initiated with Overweight rating and $210 (24% upside) price target at Wells Fargo.
Medtronic (NYSE:MDT) initiated with Buy rating and $130 (14% upside) price target at SunTrust.
Mettler-Toledo (NYSE:MTD) initiated with Equal Weight rating and $815 (2% upside) price target at Wells Fargo.
Nevro (NYSE:NVRO) initiated with Buy rating and $132 (9% upside) price target at SunTrust.