Search This Blog

Wednesday, September 2, 2020

J&J bails on flu candidate pimodivir

Johnson & Johnson (NYSE:JNJ) unit The Janssen Pharmaceutical Companies announces that it will terminate development of antiviral pimodivir for hospitalized influenza A patients.

Its decision was prompted by preliminary data from a Phase 3 clinical trial that showed pimodivir, combined with standard-of-care treatment, was unlikely to show an incremental benefit.

The study and a parallel Phase 3 in outpatients with influenza A will be stopped.

Janssen in-licensed exclusive rights to the drug for influenza A from Vertex Pharmaceuticals (NASDAQ:VRTX) in 2014.


Amarin under pressure on advancement of Vascepa patent case

Amarin (NASDAQ:AMRN) is down 10% premarket on robust volume in apparent reaction to reports that judges have been assigned in its appeal of an adverse ruling by a Nevada court opening the gate for generic versions of Vascepa (icosapent ethyl).

On March 30, shares plummeted after the district court ruled that certain of the company’s patents are invalid, unenforceable and/or will not infringed by generic versions described in the marketing applications filed by Dr. Reddy’s Laboratories (NYSE:RDY) and Hikma Pharmaceuticals USA (10-Q, page 43).

Vascepa accounted for 99% of the company’s Q2 revenue ($133.7M/135.2M).

Despite the risk of an unsuccessful appeal, Wall Street sell-siders are Bullish on the stock with a consensus fair value target of $13.80 (90% upside). The situation is a classic binary event that characterizes biopharma/biotech stocks. According to analysts, a win could propel shares to $30 – 35 while a loss could send prices reeling to the $2 – 4 range. 


STAAR Surgical lenses sale in China up 39% in August, reaffirms Q3 guidance

STAAR Surgical (STAA +1.1%) reaffirms Q3 outlook in a filing ahead of investor conference. The guidance was first disclosed in the second quarter conference call where executives said “for Q3 the company currently anticipates a sequential revenue increase of at least 20% from our Q2 results, which would then result in year-over-year, double digit growth for the quarter.”

2Q20 net sales was $35.2M (-11% Y/Y).

The eye care company further expects to complete U.S. EVO clinical trial enrollment this month and launch EVO VIVA lens in beginning 3Q20.


“At this point we expect fourth quarter revenue will be very similar to third quarter as high volume seasonality tapers off in China, but we see traditional seasonal increases in our other markets,” said president and CEO Caren Mason in 2Q20 earnings conference call.

With presence in 75 countries, the company has recorded highest growth for its implantable collamer lens units in Japan (+65% Y/Y).

For the month of August and July, lenses sold to clinicians in China increased 39% and 34% Y/Y, respectively.




Avid Bio +5% after topping FQ1 expectations on expanded margins

Avid Bioservices (CDMO) Fiscal Q1 2021 results:

Revenues: $25.4M (+66.0%).

Gross margin for FQ1 was 34%, up significantly compared to 7% for Q1 2020. The increase was primarily due to increased manufacturing revenue from the growth in the number and scale of manufacturing runs, and fees associated with the customer’s unused capacity.

Net Income: $3.3M (+171.7%); EPS: $0.06 (+175.0%).

Quick Assets: $28.2M (-22.3%). This decrease in cash is primarily due to the repayment of note payable under the Paycheck Protection Program loan of $4.4M and the timing of changes in operating assets and liabilities during the period.

Backlog at the end of FQ1 was $60M compared to $65M at the end of fiscal ’20.

The Company has signed three new customers and project expansion orders with existing customers for $20M.

Avid entered into a co-marketing agreement with Argonaut Manufacturing Services to support drug product manufacturing. This partnership is designed to offer customers Avid’s upstream and downstream process development and manufacturing services in tandem with Argonaut’s parenteral drug product fill-finish services, to support the efficient delivery of CGMP parenteral drug products for use in clinical studies.

Avid also recently initiated its planned annual preventative facility maintenance program.

Fiscal year 2021 Guidance: Revenue: $76M – $81M (unch).



Trump administration unveils eviction moratorium through end of the year

September 2, 2020

The REIT sector is on watch after the Trump administration implemented a national moratorium on residential evictions through the end of the year based on the 1944 Public Health Service Act.
The new ban covers tenants who certify that they have lost “substantial” income; that they expect to make no more than $99,000 in 2020 or received a stimulus check; and that they are making their “best efforts” to pay as much of their rent as they can. Tenants must also certify that an eviction would likely make them homeless or push them to double up with others in close quarters.
Evictions for reasons other than nonpayment of rent will be allowed to proceed, but it’s not clear how the move affects landlords, who must continue to make their own payments.
When the moratorium expires at the end of 2020, renters who received protection will still need to make up missed payments to their landlords.
Putting it in perspective: According to the Aspen Institute, between 30M and 40M Americans could have been at risk of eviction in the next several months, while in 56 of 100 cities nationwide, including San Francisco and New York, rent has either decreased or remained steady since March.

Oak Street to open three health clinics with Walmart in Texas

Oak Street Health (NYSE:OSH) announces a collaboration with Walmart (NYSE:WMT) to bring its clinics to three Walmart supercenters in the Dallas-Fort Worth area.

The anticipated openings will take place in the fall 2020.

The new Oak Street Health clinics will offer comprehensive and preventive primary care and urgent care services.

OSH recently closesd its IPO in August 2020, raising ~$377M in gross proceeds.


Tuesday, September 1, 2020

Promising new ALS drug candidates

Scientists have taken a significant step forward in the search to find effective new drug candidates for the treatment of motor neurone disease.

Researchers from the Universities of Liverpool (UK) and Nagoya (Japan) have shown that a Selenium-based drug-molecule called ebselen and a number of other novel compounds developed at Liverpool can change many of the toxic characteristics of a protein, superoxide dismutase (SOD1), which causes some cases of Amyotrophic lateral sclerosis (ALS), also known as motor neurone disease.

The study is published in the journal EBioMedicine.

ALS is a neurodegenerative disease which affects motor neurons and the neuronal links between our brain and our muscles. Over the course of the disease these nerve links die, and the patient becomes paralysed, with the majority dying within 2 to 5 years of diagnosis. Around 20% of the familial ALS cases arise from dominant mutations in the sod1 gene. Aggregation of mutant SOD1 protein in familial cases and of wild-type SOD1 in at least some sporadic ALS cases is one of the known causes of the disease. Riluzole, approved in 1995 and edaravone in 2017 remain the only drugs with limited therapeutic benefits.

Stabilisation of the original SOD structure is seen as a key strategy to avoid aggregation. The team have developed a number of ebselen-based compounds with improvements in SOD1 stabilisation and in vitro therapeutic effects with significantly better potency than edaravone. Structure-activity relationship of hits has been guided by high resolution structures of ligand-bound A4V SOD1, a mutant which causes the most severe disease. They were also able to show clear disease onset delay of ebselen in a transgenic ALS model mouse, holding encouraging promise for potential therapeutic compounds.

Professor Samar Hasnain, who led the international team of interdisciplinary experts said: “The fact that this new generation of organo-selenium compounds have better in vitro neuroprotective activity than edaravone holds a significance promise for the potential of this class of compounds as an alternative therapeutic agent for ALS treatment.

“The ability of these compounds to target cysteine 111 in SOD may have wider therapeutic applications targeting cysteines of enzymes involved in pathogenic and viral diseases including the main protease of SARS-Cov-2 (COVID-19).”

Professor Paul O’Neill, who lead the medicinal chemistry programme said: “Our medicinal chemistry approach, guided by protein-ligand crystallography studies, focused on the design of ebselen based analogues that have improved in vitro potency coupled with excellent predicted CNS exposure and improved solubility and metabolic stability characteristics. By employing this multi-parameter optimisation approach to drug design, the next key stage will be to screen our next generation compounds in appropriate disease models.”

Professor Koji Yamanaka, a physician-neuroscientist at Nagoya University, said: “It is very encouraging that a number of these novel Selenium compounds exhibited better in vitro neuroprotection in mouse neuronal cells than edaravone. In vivo disease onset delay by ebselen has been demonstrated for the first time in ALS mouse model and further improvement can be expected from the new novel compounds in view of their improved in vitro protection. Choices are very limited for a current ALS therapy, therefore, we are excited to take a significant step forward for developing a new class of drug candidate for ALS.”

###

The work was supported by a grant from the ALS Association.