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Monday, January 11, 2021

Thermo Fisher and the new variant

 Late last week the FDA warned that some of the molecular tests it has authorised for the detection of Covid-19 might be less able to pick up the new variants of the virus that are currently circulating, with the more transmissible form designated B117 being of particular concern.

Thermo Fisher Scientific, the maker of one of the tests the FDA named, disputes that its TaqPath assay is more likely to produce false negatives when used to test a patient carrying this new variant. In fact, the group tells Evaluate Vantage that its test could be of great use here, since unlike almost all the other authorised assays, it appears to be able to distinguish between the B117 variant and the wild-type virus, and thus to track the spread of this new form. 

Rather than sequencing the entire viral genome, which would be a lengthy and expensive process, Covid-19 PCR tests detect one or more short stretches of viral RNA. These targets vary from test to test: Thermo Fisher’s TaqPath assay identifies regions of the virus’s S, N gene and ORF1ab genes, Manoj Gandhi, senior medical director at Thermo Fisher Scientific, explains. The first of these encodes the spike protein which enables the virus to bind to receptors on the patient’s lungs and thereby infiltrate their cells.

The B117 variant, first detected un the UK, carries 23 mutations compared with the wild-type, 17 of which lead to changes in protein structures. By sheer chance, one of these mutations, in the S gene, is relevant to Thermo Fisher: 69-70del, which causes deletion of the amino acids in positions 69-70 of the spike protein.

When the TaqPath assay is used on a sample from a patient with B117, the test comes back positive for the N and ORF1ab sequences – but negative for the S gene, since the 69-70del mutation no longer matches the TaqPath’s sequencing probes. This is called an S gene “drop out”.

Not a bug but a feature

Mr Gandhi is adamant that this does not mean that the test will produce false-negative results, and in fairness the FDA’s warning concedes this, stating that “since [the TaqPath] test is designed to detect multiple genetic targets, the overall test sensitivity should not be impacted”. 

But the S gene drop out in an overall positive test result would indicate, though not definitively diagnose, the presence of the B117 variant, which is estimated to be 70% more transmissible than the wild-type. B117 is the only emergent form of the virus whose presence the test can indicate – it cannot tell the difference between the wild-type and the 501.V2 variant, first identified in South Africa, for example. 

Still, this ability has implications beyond simply B117’s spread, Mr Gandhi explains. 

“There has been some literature that says that these patients actually have higher viral load,” he says, adding that “we know higher viral loads means more severe disease. There could be some diagnostic implication here. And there have been some questions about whether this might actually impact treatment.”

Higher Covid-19 viral load is definitively associated with increased mortality, but the link between B117 and viral load remains tentative. If this is borne out, Thermo Fisher’s test could give an idea of patients’ prognosis, with obvious implications for triage and treatment choices. As far as Mr Gandhi knows, however, there are no prospective clinical trials evaluating use of the TaqPath test in this way. 

Thermo Fisher declined to say whether the TaqPath’s ability to detect B117 had led to an increase in sales of the test. But there would appear to be a competitive advantage here over the other authorised molecular tests for Covid-19, including those from diagnostics leaders such as Roche and Abbott, whose tests do not target S gene sequences. 

There is one exception. The Linea Covid-19 assay sold by Applied DNA Sciences uses two regions of the S gene as its targets, one of which also results in an S gene drop out when used to test a sample from a B117-infected person, and therefore this could, theoretically, also be used to guide treatment of B117 patients. 

Further mutations

Along with advantages, though, there is a danger. What if the virus mutates further and another of the genetic targets used by PCR tests drops out? What if they all do?

Loss of all the viral sequences a test targets would represent “a doomsday situation” for its manufacturer, Mr Gandhi says, meaning that that particular test would be rendered useless. But this is unlikely to happen, even to tests that have already experienced one drop out; Thermo Fisher is not rushing to develop a new molecular Covid-19 assay to replace TaqPath.

And there is another potential hazard on the horizon: Covid-19 vaccines. Because these induce antibodies against the spike protein, they will exert evolutionary pressure on the virus to favour mutations in the S gene that produce a different form of the spike protein able to evade vaccinated patients’ immune responses. 

Therefore, theoretically at least, more S gene mutations are on the way. Tests that use only S gene sequences might be at risk of becoming redundant; those that target other parts of the viral genome will be safer, though of course less likely to be able to detect any new forms of the virus that emerge. 

Ultimately, assuming vaccination programmes succeed, demand for Covid-19 tests will fall. Until then, Thermo Fisher has an intriguing new use case for its test. 

https://www.evaluate.com/vantage/articles/interviews/thermo-fisher-and-new-variant

EyePoint Prelim 2020 Product Revenue, Business Update

 - IND filed in December 2020 for EYP-1901, a potential six-month sustained delivery intravitreal anti-VEGF treatment targeting wet age-related macular degeneration -

- Anticipated Phase 1 clinical trial initiation in Q1 2021 -

- Q4 2020 net product revenues are estimated to be $6.2 - $6.6 million versus $7.9 million in 2019 and $20.3 - $20.7 million for the full year 2020 as compared to $16.8 million for the full year 2019 -

- Sequential quarterly increases in customer demand of 30% and 10% for DEXYCU® and YUTIQ®, respectively -

- Approximately $44M of cash and cash equivalents estimated on December 31, 2020 -

https://www.globenewswire.com/news-release/2021/01/11/2156596/0/en/EyePoint-Pharmaceuticals-Provides-Business-Update-and-Preliminary-Fourth-Quarter-and-Full-Year-2020-Net-Product-Revenues.html

GenMark Prelim 2020 Results

  GenMark Diagnostics, Inc. (NASDAQ: GNMK), a leading provider of automated, multiplex molecular diagnostic testing systems, today provided preliminary operational and financial results for the year ended December 31, 2020.

Financial Highlights

  • Total revenue for 2020 is expected to be approximately $171 million, representing an increase of approximately 95% over 2019
    • ePlex® revenue for the full year 2020 is expected to be approximately $152 million, an increase of 155% over 2019
  • Total revenue for the fourth quarter of 2020 is expected to be approximately $50 million, representing an increase of 84% over the fourth quarter of 2019
    • ePlex revenue for the fourth quarter of 2020 is expected to be approximately $45 million, an increase of 138% over the fourth quarter of 2019
  • Gross margin is expected to be approximately 39% for the fourth quarter of 2020 and between 39% and 40% for the full year 2020

Operational Highlights

  • Placed 70 net new ePlex analyzers in the fourth quarter of 2020, finishing the year with an installed base of 792 ePlex analyzers placed worldwide
    • ePlex installed base grew 50% year over year
  • Fourth quarter annuity was approximately $220,000 per analyzer, compared to approximately $148,000 in the fourth quarter of 2019
  • Increased manufacturing capacity by more than 75% versus prior year with the completion of the first of two new production lines during the quarter

“Fourth quarter demand remained very strong, driven by our ePlex RP2 and blood culture ID panels that provide broad pathogen coverage and simplified workflow with hands on time of one minute or less,” said Scott Mendel, President and Chief Executive Officer. “During the quarter, we validated the first of our two new ePlex manufacturing lines that increases our production capacity to approximately 160,000 ePlex tests per month and we remain on track to validate the second line in the very near future.”

“With multi-year contracts that include committed volumes, GenMark has created an enduring and recurring revenue stream that provides visibility to driving continued top line growth in 2021. I’m proud of the entire GenMark organization, as we remained committed to our key priorities and delivered remarkable results throughout the entire year under extraordinary circumstances,” concluded Mendel.

These preliminary results are based on management’s initial analysis of operations for the quarter and year ended December 31, 2020 and are subject to further internal review and audit by the company’s external auditors. The company expects to issue full 2020 financial results and 2021 guidance in late February.

https://www.globenewswire.com/news-release/2021/01/11/2156610/0/en/GenMark-Diagnostics-Provides-Preliminary-Operational-and-Financial-Results-for-2020.html

JPM, Day 1: Novartis' Cosentyx growth, Bristol's M&A shopping list, Vertex's beyond-CF ambitions

 Boot up your computers and get those meeting room links ready: This year's virtual J.P. Morgan Healthcare Conference has officially kicked off. Several players in the COVID-19 fight have already sketched out and updated their battle plans for the pandemic's second year, as other Big Pharmas eye M&A in the months to come. 

Here's your need-to-know, from Bristol Myers Squibb's dealmaking cash flow to Vertex's beyond-CF work to Novartis' Cosentyx outlook—and more. 

Fierce Pharma will be covering the day's biggest news at it happens. Check back here for updates and catch Fierce Biotech's coverage here

UPDATED: Monday, Jan. 11 at 1:15 p.m. ET

Despite a raft of new dermatology competitors, Novartis’ Cosentyx has been able to hang onto share in a way that’s “been quite remarkable,” company CEO Vas Narasimhan said—and he attributed the success to the drug’s availability to clear psoriasis not only from the skin, but also the nails, scalp and other areas. Still, dermatology is only one piece of the puzzle for Cosentyx, which is moving in the direction of a 50-50 sales split between its dermatology and rheumatology indications. “I think the real story for Cosentyx … is that you’re going to see the majority of the sales come from these rheumatology and newer indications,” he said, adding that those “will become the growth driver” for the projected $5 billion seller. In the meantime, “we’ll continue to be disciplined and thoughtful in how we rebate in the U.S. so we don’t give up price in dermatology at the cost of all these other indications,” he noted.

UPDATED: Monday, Jan. 11 at 12:07 p.m. ET

Last year, Roche lost roughly $5 billion in sales to biosimilar competition, but the company still put up topline growth, CFO Alan Hippe said. He pointed to Phesgo, a fixed-dose combination of Herceptin and Perjeta, as one countermeasure, but also stressed innovation as “the best line of defense.” Last year, the Swiss pharma signed 132 new collaborations across pharma, digital and personalized healthcare and diagnostics to drive innovation. Story

Biogen and its investors have a lot riding on the company’s FDA application for Alzheimer’s candidate aducanumab, and now the fateful decision is less than 2 months away. At Monday’s JPM presentation, CEO Michel Vounatsos said 2021 could be a “transformative year” for the company as it awaits an FDA decision on the candidate—expected by March 7—and as it delivers new data on a series of pipeline programs.

Independent experts convened by the FDA in November voted against recommending approval for aducanumab, but Biogen R&D chief Al Sandrock said Monday the vote was “nonbinding” and that there’s precedent for the FDA to go against panel recommendations. As the aducanumab situation plays out, Vounatsos said Biogen presents a “balanced” risk reward profile for investors due to its marketed meds, its growing biosimilar business and its pipeline. The company could see “multiple blockbuster launches” in the coming years, he added.

UPDATED: Monday, Jan. 11 at 10:00 a.m. ET

Even after shelling out $74 billion for Celgene and $13.1 billion for MyoKardia, Bristol Myers Squibb still has “significant financial flexibility” to pull off deals, Bristol Myers CEO Giovanni Caforio said. Specifically, the company’s constantly exploring “midsize bolt-on deals” like that of MyoKardia, he added. The company expects to have $45 billion to $50 billion in free cash flow around 2021 to 2023. Story

One month back, the FDA told Regeneron to pump the brakes on its experimental blood cancer drug trial, citing safety concerns. After looking to "fulfill their need" to lift the hold, the company has done its part, and the ball is now in the FDA's court, CSO George Yancopoulos, M.D., Ph.D., said. Regeneron has since paused enrollment on the study—while treatment continues for consenting patients—and sent off a new protocol amendment to the FDA, with the “goal of resuming patient enrollment in the first quarter of 2021.” Story

BioNTech says it's gunning to produce 2 billion doses of its Pfizer-partnered vaccine—now dubbed Comirnaty—in 2021, up from its previous goal of 1.3 billion doses. And that's not all BioNTech has in store for year two of the pandemic; the company is looking to boost capacity by rolling out a six-dose vial; plus, it's continuing to expand with new sites, suppliers and CMOs. A Comirnaty manufacturing site with annual capacity for 750 million doses is pegged to come online by the end of February, for instance. Beyond distribution, the company is also eyeing label expansions in children, pregnant women and other sub-populations. Story

After years of focusing on cystic fibrosis, Vertex Pharmaceuticals is advancing pipeline candidates and eyeing deals in other disease areas. Amid its worldwide rollout for triple combo CF therapy Trikafta, the company has new “firepower” to scout for mid- and late-stage drug programs, CEO Reshma Kewalramani said Monday.

The drugmaker is scouting for candidates that complement its pipeline, or new “tools and technology” to grow Vertex’s toolkit, she added. Within its own pipeline, the company is enthusiastic about gene-editing therapy CTX001 in sickle cell disease and beta-thalassemia, Kewalramani said. Meanwhile, the company is focused on growing Trikafta in new patient groups and launching in countries where it’s not yet available.

While Novavax wasn’t a first-to-market COVID-19 vaccine player, the Maryland biotech has big goals for 2021. The company plans to report interim phase 3 data for its vaccine, NVX-CoV-2373, sometime during the first quarter, and it’s already stockpiling vaccine doses in case the program wins regulatory green lights. Since the start of last year, Novavax has established a worldwide manufacturing network able to produce 2 billion vaccine doses per year, CEO Stan Erck said during Monday’s presentation. Novavax expects to deliver 110 million doses to the U.S. in the second quarter of 2021. While the duration of protection from the vaccine remains uncertain—as does overall efficacy—R&D head Gregory Glenn said the biotech is exploring the potential for a booster dose.

https://www.fiercepharma.com/pharma/jpm-day-1-bms-oncology-ambitions-novavax-and-regeneron-2021-plans-and-next-round-covid-19

JPM21: Teladoc projects 2020 revenue to reach $1.1B as it expands virtual primary care

 Teladoc expects 2020 revenue to reach $1.1 billion, doubling its 2019 revenue of $553 million, driven by surging demand for virtual care solutions.

The telehealth giant reported it delivered 10.6 million virtual visits last year, up from 4.1 million visits in 2019. The company's U.S. paid membership will reach 50 million to 51 million users, up about 36% from 37 million users in 2019.

Teladoc completed its massive $18.5 billion acquisition of Livongo in October, and, combined with its acquisition of InTouch Health last year, the company's value proposition in the marketplace is only getting stronger, Teladoc CEO Jason Gorevic said during a presentation at the annual J.P. Morgan healthcare conference Monday.

Livongo is a digital chronic condition management company that helps people manage their health through the combination of connected devices, artificial-intelligence-enabled nudges and human coaches.


The company is set up for sustainable long-term growth, Gorevic said, projecting 30% to 40% average annual revenue growth through 2023.

"We are sitting on a trove of data, more than 1 billion data elements from Livongo, and data from 14 million virtual visits that we have delivered or enabled for our clients, and that puts us in an unmatched position to take care of our members and adapt and deliver in a changing environment," Gorevic said.

Monday, Teladoc also announced an expanded partnership with Dexcom, a continuous glucose monitoring technology company, to provide personalized health insights to people managing Type 2 diabetes at no cost. The goal is to combine Dexcom’s CGM solution with Teladoc Health’s data science capabilities to enhance the diabetes management experience, the companies said.

Teladoc and Livongo, which went public a year ago, have both experienced explosive growth during the COVID-19 pandemic as consumers have turned to virtual care options.

While some healthcare providers quickly turned to Zoom or FaceTime and other point solutions to deliver virtual appointments, many providers and hospitals are turning to Teladoc for purpose-built virtual solutions for healthcare as well as the data insights the company can offer, Gorevic said.

"We’ve seen this incredible 'snap back' in the last few months with providers who early on used Zoom or FaceTime to keep their doors open and have now realized how insufficient those capabilities are, as they are not integrated with their systems or their workflows and are not purpose-built for clinical use cases," he said.


Teladoc's goal is to deliver what it calls "whole-person care" to members for a range of health conditions, from episodic to acute and chronic conditions, and across different care sites, according to Gorevic. With the InTouch Health acquisition, Teladoc helps deliver virtual care across 11,000 different sites, including hospitals and physicians' offices, from a single integrated technology platform.

In 2019, Teladoc piloted its virtual primary care program, called Primary360, with the aim of early detection of chronic disease. That service now offers 70 distinct diagnoses such as hypertension and diabetes. With early commercial traction, the company is expanding that program this month with multiple partners, including large employers and health plans, Gorevic said.

"People woke up in 2020 to the power of virtual care. We are breaking down the walls, the physical barriers, of people all needing to be located in the same place so we can deliver care on the consumers’ terms," Gorevic said.

Teladoc has plenty of "running room," he said, noting there are 65 million potential telehealth users at its current clients and 18 million potential Livongo enrollees at Teladoc clients.

"We are still just scratching the surface. There is a tremendous opportunity to expand our membership," he said.


The company's bookings in 2020 were up 35% year over year, and Teladoc sees major cross-selling opportunities with the Livongo and InTouch Health capabilities. Gorevic announced Teladoc just closed another cross-selling agreement with a regional Midwest health plan.

Teladoc also is seeing increased interest from hospitals and health systems to use the company's virtual care technology, including Livongo's connected devices, to move care from the hospital to the home, he said.

"We see the opportunity to share in the risk and savings with hospitals," Gorevic said, noting the potential to offer services as part of value-based care arrangements and bundled payments.

Teladoc experts to launch "hospital at home" pilot projects with large health systems this year. "This will not have a material impact on our economics in 2021, but we will start to see that in 2022. This will become a meaningful line of business for us," he said.

https://www.fiercehealthcare.com/tech/jpm2021-teladoc-projects-2020-revenue-to-reach-1-1b-as-it-expands-virtual-primary-care

MorphoSys To Present At the 39th Annual J.P. Morgan Healthcare Conference

 MorphoSys AG (FSE: MOR; Prime Standard Segment; MDAX & TecDAX; NASDAQ: MOR),

a commercial-stage biopharmaceutical company and a leader in antibody, 
protein and peptide technologies, announced today that Jean-Paul Kress, 
M.D., Chief Executive Officer of MorphoSys, will present at the 39th Annual 
J.P. Morgan Healthcare Conference on Wednesday January 13 at 2:50 p.m. EST. 
 
Live audio of the presentation can be accessed from the Media and Investors 
section under Conferences on MorphoSys' website, www.morphosys.com. The 
presentation as well as a replay of the webcast will also be available on 
MorphoSys' website. 
https://www.marketscreener.com/quote/stock/MORPHOSYS-AG-436425/news/PRESS-RELEASE-MorphoSys-To-Present-At-the-39th-Annual-J-P-Morgan-Healthcare-Conference-32165357/

Lonza says started production for Moderna's COVID-19 vax

 

Swiss contract drugmaker Lonza said on Monday that it has started manufacturing drug ingredients for Moderna Inc's COVID-19 vaccine from the first of three new production lines and expects the initial batch by the end of the month.

"Lonza has installed three production lines in Visp, Switzerland and we have started manufacturing the drug substance for the Moderna COVID-19 Vaccine from the first line," the company said in a statement. "The two remaining lines will come on-line sequentially during Q1 2021 as planned. This represents the first production from Lonza's new Ibex complex, and we expect the first batch by the end of January 2021."

https://www.marketscreener.com/quote/stock/LONZA-GROUP-AG-2956013/news/Lonza-says-started-production-for-Moderna-s-COVID-19-vaccine-32170547/