Roche teams up with Arrakis in RNA-targeted small molecules

Roche (OTCQX:RHHBY +0.7%) has agreed to collaborate with privately held Waltham, MA-based Arrakis Therapeutics to discover RNA-targeted small molecule drugs against a broad range of targets across its (Roche’s) R&D areas.

Arrakis says it has developed a comprehensive drug discovery toolkit that adapts the conventional tools of small molecule drug discovery to address RNA targets instead of proteins while incorporating newly invented tools to establish a broad structure-based drug design platform for RNA.

Under the terms of the deal, Arrakis will lead discovery and research for each target up to a certain point, at which Roche will have the exclusive option to advance the candidate through preclinical and clinical development.

Arrakis will receive $190M in upfront cash, milestones and royalties on net sales, adding that the aggregate value of future payments “exceeds several billion dollars.”

https://seekingalpha.com/news/3559391-roche-teams-up-arrakis-therapeutics-in-rna-targeted-small-molecules

FDA OKs use of Abbott CGM system in hospitals

The FDA has signed off on the use of Abbott’s (ABT -0.0%) FreeStyle Libre 14 day continuous glucose monitoring system in the hospital setting during the COVID-19 pandemic, enabling frontline healthcare workers to remotely monitor inpatient diabetics.

The company is also donating 25K sensors to assist in ramp ups in hard-stricken areas.

https://seekingalpha.com/news/3559348-fda-oks-use-of-abbott-cgm-system-in-hospitals

PharmaCyte Biotech enters into license agreement for COVID-19 diagnostic kits

PharmaCyte Biotech (OTCQB:PMCB +4.1%) has entered into a license agreement with Hai Kang Life, for sharing certain technology owned or controlled by Hai Kang related to COVID-19 diagnostic kits.

During the term of the Agreement, PharmaCyte is required to pay a monthly fee to Hai Kang in the amount of $6K; this monthly fee increases to $50K once the first Product receives regulatory approval from the U.S. FDA.

In addition, upon the first commercial sale of a Product, PharmaCyte is required to make quarterly royalty payments equal to 10% of Net Sales of any Product sold pursuant to the Agreement.

While Hai Kang is obligated to manufacture any such Product, PharmaCyte cannot assure that the Hai Kang’s manufacture of any Products will comply with U.S. regulatory requirements or that any health care facility or provider will be willing or able to use Products manufactured by Hai Kang.

https://seekingalpha.com/news/3559382-pharmacyte-biotech-enters-license-agreement-for-covidminus-19-diagnostic-kits

Health insurers add to rally as Sanders suspends campaign

The broad market’s up move notwithstanding, health insurers and managed care providers are rallying in apparent reaction to the news that Senator Bernie Sanders, a fervent proponent of “Medicare For All,” has dropped out of the race for president.

Selected tickers: CVS Health (CVS +2.5%), WellCare Health Plans (WCG), UnitedHealth Group (UNH +2.0%), Triple-S Management (GTS +4.9%), Molina Healthcare (MOH +6.5%), Humana (HUM +2.8%), Cigna (CI +1.9%), Centene (CNC +3.7%), Anthem (ANTM +5.3%)

https://seekingalpha.com/news/3559377-health-insurers-add-to-rally-sanders-suspends-campaign

Hospital groups rally on prospects of COVID-19 turnaround

Hospital operators are up on the heels of comments from NIAID’s Dr. Anthony Fauci that COVID-19 deaths appear to be peaking with hospitalizations already trending down, allaying fears, at least preliminarily, that the pandemic will not overrun them.

Selected tickers: Universal Health Services (UHS +6.7%), Surgery Partners (SGRY +23.8%), SunLink Health Systems (SSY +0.8%), Quorum Health (QHC), Tenet Healthcare (THC +20.5%), Community Health Systems (CYH

+10.1%), HCA Healthcare (HCA +8.0%), Humana (HUM +1.9%)
https://seekingalpha.com/news/3559369-hospital-groups-rally-on-prospects-of-covidminus-19-turnaround

MediciNova to launch MN-166 trial for COVID-19

MediciNova (NASDAQ:MNOV) plans to initiate a clinical trial of MN-166 (ibudilast) for acute respiratory distress syndrome caused by COVID-19.

The study will be conducted by Yale’s Advanced Therapies Group. There are approx. 200 COVID-19 patients at Yale, with 34 on ventilators.

The trial will also allow investigators to determine the optimal dose and route of administration in these very critical patients.

https://seekingalpha.com/news/3559216-medicinova-to-launch-mnminus-166-trial-for-covidminus-19

Regeneron teams up with Zai Lab to commercialize antibody in Greater China

Regeneron Pharmaceuticals (NASDAQ:REGN) will collaborate with Zai Lab Limited (NASDAQ:ZLAB) to develop and commercialize REGN1979, a CD20xCD3 bispecific antibody, in Greater China (mainland China, Hong Kong, Taiwan and Macau). The partnership will start with a pivotal Phase 2 study in B-cell non-Hodgkin lymphoma.

Under the terms of the agreement, Regeneron will receive $30M upfront, up to $160M in milestones and a share of profits. Zai Lab will contribute to global development costs for certain trials. Regeneron will manufacture and supply.

Zai Lab hosted a conference call this morning at 8:00 am ET to discuss the partnership.

https://seekingalpha.com/news/3559219-regeneron-teams-up-zai-lab-to-commercialize-antibody-in-greater-china