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Thursday, June 11, 2020

Myriad Genetics tumbles on continued COVID-19 pressures

Myriad Genetics (MYGN -13.0%) is down on double volume, the largest price plunge since early February, as COVID-19 disruptions continue to pressure test volumes, pricing and reimbursement.
Bloomberg Intelligence’s Jonathan Palmer believes that volumes in its flagship hereditary cancer business could drop 70 – 75% in fiscal Q4 due to slack demand for elective testing, adding that it appears doubtful that its GeneSight depression test will live up to expectations and the integration of its prenatal testing unit has been “challenging.”
https://seekingalpha.com/news/3582361-myriad-genetics-tumbles-on-continued-covidminus-19-pressures

Hospital operators lead healthcare losers on COVID-19 doubts

Hospital groups are solidly in the red, leading the selloff in the healthcare sector, on concerns about reopening shifts amid more reports of rising COVID-19-related hospitalizations.
Selected tickers: Universal Health Services (UHS -6.6%), Surgery Partners (SGRY -15.2%), SunLink Health Systems (SSY -1.3%), Select Medical Holdings (SEM -9.0%), Tenet Healthcare (THC -8.5%), Community Health Systems (CYH -3.5%), HCA Healthcare (HCA -5.9%), Humana (HUM -3.1%), iShares U.S. Healthcare Providers ETF (IHF -3.7%)
https://seekingalpha.com/news/3582357-hospital-operators-lead-healthcare-losers-on-covidminus-19-doubts

Novo Nordisk acquires AstraZeneca spinoff for as much as $2.1B

Novo Nordisk (NVO -0.6%) has acquired Corvidia Therapeutics, a developer of therapies for cardio-renal diseases spun off from AstraZeneca (AZN -2.0%), from venture capital shop Sofinnova Partners for as much as $2.100B.
The deal includes an upfront payment of $725M plus up to $1.375B in milestones.
Corvidia’s lead candidate is IL-6 inhibitor ziltivekimab for reducing the risk of major adverse cardiovascular events (MACE) in patients with chronic kidney disease who have atherosclerotic cardiovascular disease and inflammation.
Sofinnova was the company’s sole seed investor in 2015 and has remained the largest shareholder to date.
The transaction will not impact NVO’s 2020 earnings guidance nor its share buyback program.
https://seekingalpha.com/news/3582352-novo-nordisk-acquires-astrazeneca-spinoff-for-much-2_1b

Most Early COVID-19 Clinical Trials Poorly Designed

An analysis of clinical trials of potential treatments for COVID-19 suggests that most clinical trials registered between January and March this year have significant design flaws that will limit their long-term usefulness.
Of 201 trials registered with ClinicalTrials.gov or the WHO international trial registry before 26 March this year, a third exclude clinical endpoints, almost half were designed to recruit 100 patients or less and more than 70% were open label.
“Because of these weaknesses, many of these studies are likely to yield only preliminary evidence,” commented Hemalkumar Mehta, PhD, an assistant professor at Johns Hopkins University Bloomberg School of Public Health and lead author of the study, which was published in the journal BMJ Open.
“Given the urgency of identifying definitive evidence on potential COVID-19 treatments, this is an instance where we wish we did not have to say ‘further research is needed’ because of basic trial design shortcomings and small trials.”
Mehta and co-authors acknowledge the exceptional circumstances of the pandemic and the need for fast answers to the scientific problems it poses, but highlight that small, open-label trials without clearly defined endpoints only have limited statistical use and are subject to bias.
Instead, they advocate the use of randomized study designs for better accuracy and long-term benefit to patients, although they recognize that these trials are often more expensive and require strong scientific leadership to be successful.
“We understand the urgency of clinical research on COVID-19, but this is a time when we need rigorous science to inform policy and clinical decision-making,” explained co-author and G. Caleb Alexander, MD, a professor at the Bloomberg School of Public Health.
“Any treatment that is ultimately deemed safe and effective via robust trials could potentially be used by millions of people.”
Overall, the analysis showed that of the 201 trials, 87.6% were based in China (49.8%) or in the USA (37.8%). A total of 92 drugs and antibody-rich plasma were being tested in the trials, although most of the drugs were already approved for treatment of diseases or health problems other than COVID-19 such as infection with other viruses, malaria, autoimmune diseases or cancer. Only eight products or combinations of products were new.
Although randomized trials were more common than non-randomized trials, with 152 having some form of randomization, the majority of the trials in this group were open label with only 55 trials including at least single blinding to help minimize investigator bias.
Most of the trials analyzed in this study were registered in February and March, with registrations rising rapidly between early March and 26 March. Notably, as of the beginning of June, the number of COVID-19 related trials on these registries has risen to more than 2000.
“This study provides early evidence of the benefits of global registries to characterize urgent clinical trial research questions now under investigation,” conclude the authors. “Used wisely by active researchers, these registries can help to identify the most promising avenues for developing new therapies, avoid unnecessary duplication and define unanswered questions that inevitably arise from early research.”
Most Early COVID-19 Clinical Trials Poorly Designed

Lantern Pharma prices IPO at $15

Lantern Pharma (LTRN) has priced its IPO of 1.75M common shares at $15.00/share, for gross proceeds of $26.25M.
Underwriters’ over-allotment is an additional 262,500 shares.
Trading kicks off today.
Closing date is June 15.
https://seekingalpha.com/news/3582158-lantern-pharma-prices-ipo-15

Sanofi details big plans for Dupixent, sees €10B peak sales

Sanofi (NASDAQ:SNY) announces development plans for Dupixent (dupilumab), an IL-4 and IL-13 antagonist that it is co-developing and co-commercializing with Regeneron Pharmaceuticals (NASDAQ:REGN), which it expects to be one of its top growth drivers with expected peak sales of €10B. Management will provide additional details during a virtual investor event today at 9:00 am ET.
Five potential new indications:
Eosinophilic esophagitis: First part of an ongoing Phase 3 study was successful. If the second part follows suit, regulatory applications will be filed by the end of 2022.
Chronic obstructive pulmonary disease: A Phase 3 trial is underway with a second confirmatory study being initiated. If successful, regulatory applications will be filed in 2024.
Prurigo nodularis: Two Phase 3s underway with top line results expected in 2021. If positive, marketing applications will be filed by the end of that year.
Chronic spontaneous urticaria: Registrational study initiated. If the outcome is positive, marketing applications will be filed in 2022.
Bullous pemphigoid: Phase 3 study initiated. If results are positive, marketing applications will be filed in 2023 and beyond.
Dupixent is currently approved in the U.S. for eczema, asthma, atopic dermatitis and rhinosinusitis with nasal polyposis.
https://seekingalpha.com/news/3582184-sanofi-details-big-plans-for-dupixent-sees-10b-peak-sales

Regeneron initiates study of antibody cocktail for COVID-19

Regeneron Pharmaceuticals (NASDAQ:REGN) launches the first clinical trial evaluating REGN-COV2 (REGN10933 + REGN10987), its dual antibody cocktail, for the prevention and treatment of COVID-19.
The clinical program will involve four populations: hospitalized patients, non-hospitalized symptomatic patients, uninfected people in groups at high risk of exposure and uninfected people with close exposure to a COVID-19 patient.
The first two adaptive Phase 1/2/3 trials will involve hospitalized and non-hospitalized patients with COVID-19. Results from the Phase 1 & 2 portions will inform the endpoints and size of the Phase 3s.
The company says the two antibodies bind non-competitively to the critical receptor-binding domain of the SARS-CoV-2 spike protein.
https://seekingalpha.com/news/3582201-regeneron-initiates-study-of-antibody-cocktail-for-covidminus-19