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Saturday, June 18, 2022

'Differentiated Gene Editing Platform' For Precision Bio: BMO

 

  • BMO Capital Markets initiated the coverage on Precision BioSciences Inc  with an Outperform rating and a price target of $7.
  • The analyst said the thesis is based on:
    • The company's proprietary gene-editing platform, whose mechanism is differentiated in a CRISPR-dominated space, offers several advantages.
    • A diversified pipeline.
    • Asymmetric risk/reward skewed to the upside.
  • The analyst says that Precision's mechanism of action appears safer than competitors. Its smaller size allows for delivery with viral and non-viral systems.
  • Preclinical data demonstrate a favorable benefit/risk profile. 
  • The company also entered into a collaboration agreement with Eli Lilly And Co , further validating the platform's potential. 
  • BMO believes that Precision's platform can deliver competitive clinical data.
  • The analyst said, "Precision's valuation currently does not account for the in vivo platform, derisking the platform in the clinic via clean safety and sufficient efficacy in 2023 or beyond can drive more than 100% upside for the stock."

BMO Capital Sees Almost 300% Upside On Centessa Stock

 

  • BMO Capital has initiated coverage on Centessa Pharmaceuticals plc  with a price target of $19 (293% upside), and an Outperform rating.
  • The analyst writes that ZF874 is a differentiated oral therapy as it addresses the root cause of AATD. Early ZF874 data (N=2) demonstrated therapeutic efficacy in patients, but liver toxicity was also flagged.
  • Centessa is currently trying to identify an optimal dose that circumvents the liver toxicity while maintaining efficacy. The data readout is expected in 2H22.
  • The analyst notes that the hemophilia program with potential FDA approval in 2026 could drive short-term upside.
  • SerpinPC is differentiated against most approved/investigational hemophilia treatments as it doesn’t trigger thrombosis and comes with convenient dosing. 
  • An open-label extension study readout is planned for 4Q22.

Acadia's Alzheimer’s Drug Voted Down by FDA Advisory Committee

 The U.S. Food and Drug Administration’s Psychopharmacologic Drugs Advisory Committee (PDAC) voted against Acadia Pharmaceutical’s supplemental New Drug Application (sDNA) of Nuplazid (pimavanserin) tablets for the treatment of hallucinations and delusions associated with Alzheimer’s disease psychosis by a vote of 9-3. 

The negative vote came after the question, “Does the available evidence support a conclusion that pimavanserin is effective for the treatment of hallucinations and delusions in the ADP population?”

Dean Follman, Ph.D., a biostatistician with the National Institute of Allergy and Infectious Diseases, voted no. He noted, “In terms of further evidence, I’d like to see a randomized trial in ADP.” He indicated he had never seen the type of trial the company conducted, and he felt a better-designed trial would be helpful.

The size of the studies, both small, was criticized by the "no" voters. They recognized the unmet need in the field and the emotional content of the patient testimony, but they felt the data wasn’t as convincing as it should be. They also wanted a longer duration of efficacy being evaluated and a broader diversity of patients in a trial. The "yes" votes revolved around the drug already being seen as effective and safe in the Parkinson’s psychosis population and the unmet need for the drug.

Company shares popped 12% when the agency published briefing documents ahead of the meeting, although trading was halted Friday for the AdCom discussion. Nuplazid is a selective serotonin inverse agonist and antagonist that preferentially targets 5-HT2A receptors. It is the first drug approved for hallucinations and delusions associated with Parkinson’s disease psychosis. There are no approved treatments for this indication for Alzheimer’s patients.

The agency shut down the company’s first attempt at an sNDA last year, issuing a Complete Response Letter suggesting a lack of statistical significance in some of the dementia subgroups. The company then included additional data from two previous clinical trials, HARMONY and Study-019, and submitted the data with the sNDA. The FDA reported in its briefing documents that the data met the agency’s requirements to consider the drug for this indication.

The FDA did, however, point to concerns with Study-019 over “protocol deviations.” It noted some patients in the trial do not have “clear documentation that psychotic symptoms developed after AD (Alzheimer’s disease) diagnosis had been established or subjects who received exclusionary medications at the time of randomization.”

Acadia acknowledged this point, saying it had difficulties establishing the date of the Alzheimer’s diagnoses in these patients. They also stated that some patients were excluded because their psychosis was due to another psychiatric condition, for example, substance abuse or schizophrenia.

They pointed to their per-protocol analysis to evaluate those deviations, and the results favor Nuplazid. The FDA agreed they would be able to use the data from Study-019 for regulatory evaluation. The FDA also noted no key safety concerns.

“There is a great unmet need for FDA-approved medications to treat hallucinations and delusions in patients with Alzheimer’s disease,” Howard Fillit, M.D., co-founder and chief science officer of the Alzheimer’s Drug Discovery Foundation (ADDF), told BioSpace. “Up to a third of the six million people with dementia develop Alzheimer’s Disease Psychosis (ADP), a devastating condition characterized by hallucinations and symptoms of psychosis that present as anxiety, aggression, and physical and verbal abuse.”

The drug brought in $115.5 million in the first quarter of this year, an 8% increase year-over-year.

The FDA has set a target action date of August 4 for its final decision. Should the agency approve the drug, it will most likely increase sales significantly. Although the FDA is not required to follow the recommendation of the advisory panel, it often does. With a mixed vote, it will be difficult to predict how the agency will fall.

Optum UK to buy healthcare software provider EMIS for $1.5 b

 

UK healthcare software provider EMIS Group Plc will be acquired by a group led by health services firm Optum UK for about 1.24 billion pounds ($1.51 billion), the companies said on Friday.

The 1,925 pence-per-share, all-cash offer represents a 49% premium to EMIS' closing price on Thursday.

https://www.marketscreener.com/quote/stock/EMIS-GROUP-PLC-6081768/news/Optum-UK-to-buy-healthcare-software-provider-EMIS-for-1-5-billion-40753931/

Global Cord Blood Shares Rise 15% After Merger Target Gets FDA Clearance for IND

 Global Cord Blood Corp. shares were up 15% to $3.42 after the company said Cellenkos Inc. recently got U.S. Food and Drug Administration clearance for its Investigational New Drug application for CK0804.

This clearance allows Cellenkos to initiate a Phase 1b, open-label study of CK0804 as an add-on therapy to ruxolitinib in patients with myelofibrosis who experience a suboptimal response to ruxolitinib.

Global Cord Blood agreed to buy biotechnology company Cellenkos in April. At closing, Global Cord will issue 125 million new shares valued at $11 a share, and pay $664 million in cash.

https://www.marketscreener.com/quote/stock/GLOBAL-CORD-BLOOD-CORPORA-42693154/news/Global-Cord-Blood-Shares-Rise-15-After-Merger-Target-Gets-FDA-Clearance-for-IND-40754413/

Bayer wins fourth Roundup weedkiller case in U.S.

 A U.S. jury found Bayer's Roundup weedkiller did not cause an Oregon man's cancer, the German agriculture and pharmaceuticals company said on Saturday, handing the firm its fourth consecutive trial victory over such claims.

The verdict, reached on Friday by the Circuit Court of Jackson County, Oregon, is "consistent with the assessments of expert regulators worldwide as well as the overwhelming evidence from four decades of scientific studies concluding that Roundup can be used safely and is not carcinogenic", Bayer said.

"We continue to stand behind the safety of Roundup and will confidently defend the safety of our product as well as our good faith actions in any future litigation."

Glyphosate is the active ingredient in Bayer brands such as Roundup and RangerPro. It has been at the centre of mass litigation in the United States brought mostly by residential gardeners claiming the weedkiller caused their cancer.

The company has spent billions of dollars to settle close to 100,000 Roundup cases.

https://www.marketscreener.com/quote/stock/BAYER-AG-436063/news/Bayer-wins-fourth-Roundup-weedkiller-case-in-U-S-40757992/