OncoCyte to acquire Insight Genetics

OncoCyte (NYSEMKT:OCX) has agreed to acquire privately held Insight Genetics (IG) for $12M in cash and stock, specifically, $7M in cash and $5M in OCX common shares.

The merger agreement also provides for OCX to pay a 10-year revenue share of not more than 10% of net collected revenues for current IG pharma service offerings and a tiered revenue share percentage of net collected revenues through the end of the lifecycle if certain new cancer tests are developed using IG technology. OncoCyte may pay contingent consideration of up to $6 million, in any combination of cash or OncoCyte common shares if certain milestones are achieved.

OCX will host a conference call today at 4:30 pm ET to discuss the transaction.

Shares up 5% after hours.

https://seekingalpha.com/news/3531076-oncocyte-to-acquire-insight-genetics

CDC to providers: Be on lookout for mysterious pneumonia cases

The CDC in a Jan. 8 advisory notice urged clinicians to look for symptoms of pneumonia among any patients who recently visited China.

If providers identify a patient with an unexplained severe respiratory illness, they should notify local and state health officials immediately.

The notice comes amid a mysterious pneumonia outbreak in Wuhan, China, which has sickened 59 people since Dec. 12. Scientists discovered a new strain of coronavirus in some patient samples, but health officials have yet to identify this strain as the definitive source of the outbreak.

The outbreak is potentially linked to a local market that sold live animals. At present, health officials have not found any evidence of the strain spreading through human transmission.

https://www.beckershospitalreview.com/quality/cdc-to-providers-be-on-lookout-for-mysterious-pneumonia-cases.html

23andMe licenses 1st drug

Genetic testing company 23andMe licensed a drug to Spanish drugmaker Almirall, the first drug it developed completely in-house, according to Bloomberg.

More than 10 million people have taken DNA tests from 23andMe, and the data the company receives helps it to discover new drug targets to treat diseases.

23andMe has previously partnered with GlaxoSmithKline to share its data and collaborate on drug development, but this is the first time it has developed a drug on its own.

Emily Drabant Conley, 23andMe vice president of business development, told Bloomberg the company is pursuing other drug targets and that it may conduct its own clinical trials rather than license to other companies.

The drug it licenced is designed to treat autoimmune and inflammatory conditions, such as lupus and Crohn’s disease. It has been tested on animals, but still needs to undergo clinical trials in humans.

The deal with Almirall gives it the rights to develop and commercialize the drug for worldwide use. Almirall plans to develop the drug to target dermatological conditions, Bloomberg reported.

https://www.beckershospitalreview.com/pharmacy/23andme-licenses-1st-drug.html

Castle Biosciences up on business ramp

Thinly traded Castle Biosciences (CSTL +1.7%) is up, albeit on a modest 19K shares, on the heels of its Q4 update. Highlights:

DecisionDx-Melanoma test reports up 37% to 3,270.

DecisionDx-UM test reports up 13% to 434.

Second commercial expansion executed last month, doubling of personnel.

Cash and equivalents at year-end: ~$99M.

H2 2020: Launch DecisionDx-SCC gene expression profile (GEP) test for high-risk cutaneous squamous cell carcinoma. Announce data from studies of GEP test for patients with suspicious pigmented lesions.

https://seekingalpha.com/news/3531013-castle-biosciences-up-2-on-business-ramp

CareDx up on CE Mark for AlloSeq cfDNA test

CareDx (CDNA +3.4%) perks up on average volume on the heels of CE Mark certification for its liquid biopsy AlloSeq circulating free (cf) DNA test kit.

https://seekingalpha.com/news/3531026-caredx-up-3-on-ce-mark-for-alloseq-cfdna-test

Ideaya Biosciences up on research deal with Boston Children’s

IDEAYA Biosciences (IDYA +9.6%) has agreed to sponsor research at Boston Children’s Hospital aimed at evaluating the role of protein kinase C (PKC) in a rare inherited condition called Sturge-Weber syndrome (SWS) that affects the development of certain blood vessels causing abnormalities in the brain, skin and eyes from birth. It is caused by mutations in the GNAQ gene.

The research will assess whether lead candidate IDE196, a PKC inhibitor in-licensed from Novartis, can restore normal function in endothelial cells with GNAQ mutations and if PKC inhibition regulates blood vessel size in mouse models of enlarged vessels seen in SWS capillary malformations.

https://seekingalpha.com/news/3531030-ideaya-biosciences-up-10-research-deal-boston-childrens

Evelo Bio up on improved timeline for lead candidate

Thinly traded micro cap Evelo Biosciences (EVLO +7.1%) is up on 60% higher volume, a modest 88K shares, in reaction to its update on lead candidate EDP1815.

Based on FDA feedback, it has finalized the design of a Phase 2 dose-ranging clinical trial in patients with mild-to-moderate psoriasis. The primary endpoint of the 180-subject study will be the mean reduction from baseline in PASI score at week 16. The trial should start next quarter with preliminary data available by year-end.

If all goes well, Phase 3 studies will commence in 2021 that may be smaller than originally expected which will shorten the development timeline to registration.

The company is also evaluating EDP1815, an orally administered monoclonal strain of a gut bacterium called Prevotella histicola, in atopic dermatitis.

https://seekingalpha.com/news/3531033-evelo-bio-up-7-on-improved-timeline-for-lead-candidate