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Saturday, June 27, 2020

ALX Oncology on deck for IPO

ALX Oncology (ALXO) has filed a preliminary prospectus for a $100M IPO.
The Burlingame, CA-based biotech develops cancer therapies that block the CD47 checkpoint pathway and bridge the innate and adaptive immune systems. It says lead candidate ALX148 is a next-generation CD47 inhibitor that has a high affinity for the checkpoint but avoids the hematologic toxicities of other CD47 blockers. Initial targeted indications include myelodysplastic syndromes, acute myeloid leukemia and solid tumors. A Phase 1 dose-escalation study is in process.
2019 Financials: Related-Party Revenue: $4.8M (+132%); Operating Expenses: $24.0M (+52%); Net Loss: ($23.3M) (-34%); Cash Consumption: ($14.2M) (-8%).

Cleveland BioLabs joins COVID vaccine-stoked rally

June 27, 2020

Thinly traded nano cap Cleveland BioLabs (CBLI +110.5%) is up on a whopping 119x surge in volume, caught up in the COVID-19 tsunami. Investors are falling all over themselves to buy shares in vaccine developers, which are commonly combined with an immune system booster called an adjuvant, in light of stubbornly high infection rates in many parts of the world.
CBLI has such an adjuvant, dubbed SA-702, that is ready for testing.

ACell on deck for IPO

ACell (ACLL) has filed a preliminary prospectus for an $86M IPO.
The Columbia, MD-based regenerative medicine company develops products used in acute care settings to treat and manage moderate-to-severe wounds and reinforcement of soft tissue surgical defects. Top seller is MicroMatrix, accounting for over 46% of 2019 revenue, a urinary bladder matrix used for acute and chronic wounds.
2019 Financials: Revenue: $100.8M (+13%); Operating Expenses: $80.3M (+6%); Net Income: $1.4M (+145%); Cash Flow Ops: $0.6M (+123%).

U.S. food exporters sign safety declarations, not virus-free guarantees

U.S. food and feed exporters are shipping goods to China with letters assuring the safety of their cargo in lieu of official declarations requested by Chinese authorities that guarantee coronavirus-free shipments, a U.S. agricultural export group said on Friday.
The commitment statements, drafted by the Agriculture Transportation Coalition (AgTC), are meant only to assure importers that shipments have been harvested, processed and handled consistent with industry safety standards and guidelines from medical experts.
The move comes after China’s customs authority last week asked food exporters to the country to sign official declarations their produce is not contaminated by the novel coronavirus.
Chinese demands for the guarantees have roiled the food and agriculture sector and are causing some shippers to forego the China trade, U.S. produce growers group said on Friday.
“You’re not signing your name to a guarantee that they have no coronavirus. Nobody can do that. Coronavirus does not live on food or plants,” said Peter Friedmann, executive director of AgTC, which represents mostly exporters of U.S. agricultural products in shipping containers.
Exporters cannot guarantee that cargo will remain free of the virus after it leaves their facilities, Friedmann said.
“If a Chinese customs inspector has the virus and he handles something, someone can come back later and say that shipment has coronavirus,” he said.
Chinese customs officials have not confirmed that the commitment statements are acceptable replacements for their official declarations, but no AgTC members have reported any related shipping issues to date.

Pfizer sues for U.S. permission to assist patients needing expensive heart drugs

Pfizer Inc filed a lawsuit on Friday seeking to require the federal government to let it help Medicare beneficiaries afford two drugs to treat a rare and sometimes fatal heart condition, and which cost $225,000 a year.
The drugmaker said the U.S. Department of Health and Human Services’ Office of Inspector General is blocking it from offering financial aid to patients unable to afford copayments for its Vyndaqel and Vyndamax drugs, because it views such aid as an illegal kickback.
A spokesman for the inspector general declined to comment.
Pfizer’s drugs treat transthyretin amyloid cardiomyopathy, which causes the heart to stiffen and impedes its ability to pump blood. The condition can cause progressive heart failure and death if left untreated.
Though the U.S. Food and Drug Administration in May 2019 approved both drugs, which are also known as tafamidis and which Pfizer has called a potential blockbuster, the New York-based drugmaker has drawn criticism for their costs.
A study in February from the American Heart Association said tafamidis was the most expensive cardiovascular drug launched in the United States, and its long-term cost effectiveness was “uncertain.” (here)
Drug companies cannot subsidize copayments for patients enrolled in Medicare, though they may donate to independent nonprofits that offer copay assistance.
In Friday’s complaint filed in Manhattan federal court, Pfizer said its intention is not to “corrupt” doctors into prescribing its drugs more often, but rather to ensure that patients receive needed treatment.
It said the government’s restrictions violate its constitutional rights to due process and free speech.
Pfizer agreed in May 2018 to pay $23.85 million to resolve U.S. civil charges it used a purportedly independent charity to cover copayments for patients taking three other drugs. It did not admit liability.
The case is Pfizer v U.S. Department of Health and Human Services et al, U.S. District Court, Southern District of New York, No. 20-04920.

Carlyle buys 20% stake in Piramal Pharma businesses

U.S.-based Carlyle Group Inc has agreed to buy a 20% stake in the pharmaceutical unit of Indian conglomerate Piramal Enterprises Ltd for about $490 million, the companies said in a statement on Saturday.
Piramal Pharma will use the capital injection to accelerate its organic and inorganic growth plans, the statement said.
The investment comes a month after the private equity firm bought a majority stake in Indian animal healthcare company SeQuent Scientific Ltd.
“India is a hugely strategic part of Carlyle’s Asia business, and a market where we continue to see many attractive investment opportunities,” Greg Zeluck, Co-Head of Carlyle Asia Partners advisory team said.
Earlier this month, India’s Economic Times reported that Carlyle had emerged as the frontrunner to grab a minority stake in the pharma unit of business mogul Ajay Piramal, with U.S. private equity firms TA Associates and KKR & Co Inc also submitting offers for the 20% stake.

COVID-19 spread in Orlando could halt NBA season, commissioner Silver says

The NBA season could again be put on hold if there is a “significant spread” of COVID-19 among its players in Orlando, where the league is set to resume play on July 30 with no fans in attendance, commissioner Adam Silver said on Friday.
The NBA was the first major North American league to suspend its season in mid-March after a player tested positive for the novel coronavirus. It recently agreed a plan with its players to restart with 22 teams at Disney World in Florida.
But if the number of cases inside the NBA’s so-called “bubble” rises, “that may lead us to stopping” play, Silver told ESPN.
Silver said the record number of cases in Florida recently has raised the level of concern but added that the use of the campus – where players will live, practise and play – is designed to limit risk of exposure to the surrounding community.
Silver’s remarks came on the same day the NBA reported that 16 out of 302 players tested for COVID-19 on June 23 had tested positive. The league did not disclose the identities of the players.
Players are scheduled to begin traveling to Orlando on July 7 with tip-off set for July 30.