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Thursday, November 3, 2022

Amgen posts higher third-quarter revenue and profit

 Biotechnology company Amgen Inc on Thursday said its third-quarter revenue rose 1% as sales volume growth for its cancer, rheumatology and cardiovascular products was somewhat offset by lower prices and foreign exchange losses.

Revenue for the quarter totaled $6.7 billion, exceeding Wall Street estimates of $6.56 billion, as compiled by Refinitiv.

Adjusted earnings per share increased to $4.70 from $4.08 a year earlier, beating analyst estimates of $4.42.

Net income rose 14% to $2.14 billion.

For the full year, Amgen narrowed its outlook for adjusted earnings per share to a range of $17.25 to $17.85 on revenue of $26 billion to $26.3 billion, from its previous forecast of $17 to $18 per share on revenue of $25.5 billion to $26.4 billion.

https://finance.yahoo.com/news/refile-amgen-posts-higher-third-201512933.html

Exact Sciences Surges After Massively Beating Quarterly Forecasts, Raising Outlook

 Exact Sciences (EXAS) massively beat third-quarter expectations Thursday and raised its full-year outlook — and EXAS stock jumped.

During the September quarter, Exact Sciences brought in $523.1 million in sales. That handily topped projections for $502 million, according to FactSet. On a year-over-year basis, sales grew roughly 15%.

But excluding the impact of Covid tests — which have dropped off amid falling demand — revenue grew a stronger 20%, Exact Sciences said in a news release. Exact also lost 84 cents a share, narrowing from a 97-cent per-share loss in the year-earlier period. That beat estimates for another 97-cent loss.

During the regular session, EXAS stock sank 2% to 32.34. But shares climbed 4.5% higher, near 33.80, in after-hours trading on today's stock market.

EXAS Stock: Guidance Boosted By $33 Million

The results pushed Exact Sciences to boost its full-year sales outlook by $33 million. Now, the medtech company expects $2.025 billion to $2.042 billion in sales. EXAS stock analysts forecasted $2.01 billion in full-year sales.

That outlook includes $1.375 billion to $1.382 billion from its cancer screening business. Exact also calls for its precision oncology segment to bring in $595 million to $600 million in sales, and for Covid tests to generate $55 million to $60 million.

The company also said it expects adjusted earnings before interest, taxes, depreciation and amortization to be profitable in the third quarter of 2023, ahead of expectations for 2024.

https://www.investors.com/news/technology/exas-stock-exact-sciences-earnings-q3-2022/

Apollo Medical adjusts guidance up

 ApolloMed is raising its full-year 2022 guidance, previously disclosed on May 5, 2022, for total revenue, net income, and EBITDA, and reiterating guidance for Adjusted EBITDA as a result of the aforementioned revision to the Adjusted EBITDA calculation. The Company is raising guidance for revenue, net income, and EBITDA as a result of its continued organic growth and more favorable membership mix. Net income and EBITDA include the impact of an Allied Physicians of California, a Professional Medical Corporation's ("APC") investment in a payer partner, which completed an initial public offering to become a publicly traded company in June 2021. As APC's investment is an excluded asset solely for the benefit of APC and its shareholders, any gains or losses as a result of this investment do not affect the net income attributable to ApolloMed and Adjusted EBITDA attributable to ApolloMed. The November 4, 2022 revised net income and EBITDA guidance ranges assume a stock price of the payer partner of $1.05. These guidance ranges based on the Company's existing business, current view of existing market conditions and assumptions for the year ending December 31, 2022. As it relates to the revised Adjusted EBITDA calculation, the Company had expected to be in the upper range of its guidance range prior to the adjustment. With the implementation of the revised calculation, the Company expects Adjusted EBITDA will fall in the lower end of the existing guidance range.

($ in millions)

2022 Guidance Range


2022 Guidance Range


(as of May 5, 2022)


(as of November 3, 2022)


Low


High


Low


High

Total revenue

$

1,055.0



$

1,085.0



$

1,095.0



$

1,115.0


Net income

$

38.0



$

57.0



$

50.5



$

67.0


EBITDA

$

81.0



$

111.0



$

107.5



$

133.5


Adjusted EBITDA

$

136.0



$

166.0



$

136.0



$

166.0


 

See "Guidance Reconciliation of Net Income to EBITDA and Adjusted EBITDA" and "Use of Non-GAAP Financial Measures" below for additional information. There can be no assurance that actual amounts will not be materially higher or lower than these expectations. See "Forward-Looking Statements" below for additional information.

Management Commentary:

Brandon Sim, Co-Chief Executive Officer of ApolloMed, stated, "We are very pleased with our performance in the third quarter of 2022, achieving strong profitability and 40% growth on the top line primarily as a result of increased capitation revenues from organic membership growth in our core IPAs, more favorable membership mix, and participation in a value-based care model for the Medicare fee-for-service population. During the period, we also recognized a $48.8 million shared savings settlement for our participation in an ACO model for performance year 2021 ('PY 2021'). Given our ACO's incredible history of outperforming the benchmark, we opted to participate in a higher risk corridor for PY 2021, which would allow us to keep a much higher percentage of the shared savings. As a result, we booked an additional $27.0 million in shared savings and incentives revenues for third quarter 2022. Because of our strong top line performance, we reported solid bottom line results of $26.0 million, or EPS-diluted of $0.56, for the third quarter."

Mr. Sim continued, "We announced two significant developments a few weeks ago and are thrilled to share that we closed on the acquisitions of AAMG and VOMG in October. The AAMG and FYB series of transactions will not only continue to increase ApolloMed's presence in the San Francisco Bay Area, onboarding an incredible team of doctors committed to delivering quality care to their patients while adding over 15,000 managed lives, but it will also enable ApolloMed to assume financial responsibility for a patient's entire care continuum as FYB is a Restricted Knox-Keene licensed health plan. In other words, it enables ApolloMed to recognize a much larger percentage of the premium dollar as revenue for members under risk-bearing arrangements. Along with our continued expansion in Northern California, the acquisition of nine primary care clinics operating as Valley Oaks Medical Group marks ApolloMed's entry into the states of Nevada and Texas. We are looking forward to delivering equitable, high-quality healthcare to underserved populations in these new key geographic markets through our unique care model."

Mr. Sim concluded, "Due to the strong results generated in the first three quarters of the year, we are pleased to be raising our annual guidance ranges for revenue, net income and EBITDA, and expect to end 2022 on a strong note. The VOMG and AAMG-FYB transactions open up several opportunities for ApolloMed over the course of the next several months and years, and we look forward to working closely with the teams at these different organizations. These developments set the stage for an exciting 2023 and beyond, and we are proud to continue empowering independent physicians to successfully participate in value-based care arrangements, allowing them to put their focus on serving patients who need their care."

https://finance.yahoo.com/news/apollo-medical-holdings-inc-reports-220000210.html

Creative Medical Tech: FDA OKs Application for Cell Therapy for Type 1 Diabetes

 Creative Medical Technology Holdings, Inc. (NASDAQ: CELZ), an immuno-endocrine company working to revolutionize care through the development of potentially best-in-class regenerative therapeutics, today announced that the U.S. Food and Drug Administration has cleared the Company's Investigational New Drug (IND) application, enabling the Company to proceed with initiating a clinical trial for Type 1 Diabetes using AlloStem

AlloStem™ leverages a unique approach to harnessing the power of Perinatal Tissue Derived Cells® (PRDC) to multi-potentialities, including self-renewal ability, low antigenicity, reduced toxicity, and large-scale clinical expansion. The primary objective of the study (CELZ-201) is to evaluate AlloStem™ in patients with newly diagnosed Type 1 Diabetes. Patient recruitment is expected to begin in Q1 2023 with trial commencement updates to follow.

The national principal investigator of the study is Camillo Ricordi, M.D. Dr. Ricordi is the Stacy Joy Goodman Professor of Surgery, Distinguished Professor of Medicine, Professor of Biomedical Engineering, and Microbiology and Immunology at the University of Miami in Florida, where he serves as the Director of the Diabetes Research Institute and the Cell Transplant Program.

Dr. Ricordi will give an update on the study today at the 8th Perinatal Stem Cell Society Congress/Workshop at 9:00am EST.

https://finance.yahoo.com/news/creative-medical-technology-holdings-announces-113000985.html

Peak Bio shares slide after SPAC merger

Following a special purpose acquisition company (SPAC) deal that merged Peak Bio Co. Ltd. with blank-check company Ignyte Acquisition Corp., the newly-combined Peak Bio Inc. (PKBO) marked the first day of trading Wednesday with a 41% plunge that sent its shares down from $13.05 to $7.70—a reflection of just how much the market for publicly-traded biotech stock continues to reel, a year into the bear market.

Those shares continued to shrivel in early trading Thursday, falling another 36% to $4.45 as of 10:28 a.m.

South Korea-based Peak Bio focuses on developing drugs to treat oncology and inflammatory diseases. The company’s pipeline is led by PHP-303, an oral QD, reversible and highly selective small molecule acquired from Bayer and ready to enter Phase II in Alpha-1 antitrypsin deficiency (AATD). PHP-303 is designed to work by inhibiting a bioactive form of neutrophil elastase (NE). As a fifth-generation NE inhibitor, PHP-303 addresses toxicity and efficacy shortfalls from previous generation NE inhibitors, according to Peak Bio.

The company’s pipeline also includes an antibody drug conjugate (ADC) platform focused on developing therapies for oncology indications. Peak Bio’s approach to ADCs engages the immune system to enhance tumoricidal activity, an approach designed to reduce the number of treatment cycles and improving toxicity with a proprietary approach towards generating novel toxins.

Peak Bio says its most advanced ADC candidate, which targets Trop2, has shown superior linker stability and in vivo activity compared to an unnamed FDA-approved competitor with superior specificity to cancer cells and a unique ability to generate neoepitopes and synergize with immuno-oncology therapies. The company plans to Fund toxin studies in the lead ADC program, with the goal of an IND submission in the second half of 2023 and the start of a Phase Ia trial in 2024

Other uses for proceeds from the SPAC deal, according to Peak Bio:

  • Fund and begin a Phase II AATD Adaptive Design study in 2022, with data expected to be read out in the first half of 2024
  • Apply for a Department of Defense grant to fund a Phase II study of PHP-303 in ARDS, with an IND submission set for the first half of 2023
  • Conduct research and development to identify new ADC toxins

Investors consisting of existing Peak Bio stockholders and the firm Palo Alto Investors committed to the transaction by participating in a $25 million common stock private investment in public equity (PIPE) at a purchase price of $10 per share. Also among participating investors was Peak Bio’s CEO, Hoyoung Huh, MD, PhD, a serial entrepreneur/investor with board seats on several public and private biotech companies.

In addition to the $25 million from the PIPE, Peak Bio is expected to have approximately $57.5 million in cash held in Ignyte’s trust account (assuming no Ignyte stockholders exercise their redemption rights at closing), for a total of more than $82.5 million in gross proceeds. The SPAC transaction valued the combined company at a pro forma equity value of $278 million, based on a $10 share price and no shareholder redemptions.

https://www.genengnews.com/topics/drug-discovery/antibodies/monoclonal-antibodies/stockwatch-fda-panels-rebuff-on-cancer-mab-hammers-y-mabs-shares/

Track and trace can boost efficiency, cut regulatory burden in pharma

 Track and trace technology is no longer a nice-to-have for pharmaceutical manufacturers, it is a must-have.

The ongoing pressures that come from fighting spiraling costs on all fronts, coupled with battling an ever-growing number of worldwide pharmaceutical forgeries, means that track and trace systems are being relied upon by pharmaceutical producers more than ever before.

Add to this mix the fact that track and trace can also drive pharmaceutical compliance – something that is becoming ever-more complicated to navigate – and you begin to see why track and trace has rapidly become the pharma sector’s best friend.

How track and trace can streamline pharma business operations

With businesses from multiple sectors fighting ever-rising costs right across the globe, pharmaceutical firms are prioritizing the need to streamline operations and increase efficiency.

Although this is, of course, adding extra pressure on already stretched businesses, there is a glimmer of hope. We are already seeing the emergence of Industry 4.0., which many are calling the fourth industrial revolution. This is presenting a golden opportunity for pharmaceutical firms to completely overhaul their current, often antiquated systems, that are holding them back and stopping them from reaching peak performance.

Industry 4.0. is already responsible for significant steps forward, making today’s pharma operations almost unrecognizable from just a few years ago. One clear example is provided by the emergence of robotics. This technology would once only be found in huge corporations – the ones where staff are a number and anonymity is the norm due to the sheer size of operations and the thousands of staff needed to support them.

However, huge strides forward have been made in recent years, and as a result, robotics can now be found in organizations of every size, complementing the human workforce, and carrying out their tasks with precision and reliability. Once the initial cost of this technology has been recouped, there are significant cost savings to be made in the non-payment of human wages.

We are also one step closer to seeing the smart factory become a reality.

A combination of cyber-physical systems, the Internet of Things and the Internet of Systems will all combine and complement each other to create technological magic. This will lead to smart machines getting even smarter as they get access to more data, resulting in a global pharmaceutical sector becoming more efficient and less wasteful.

This is where a watertight track and trace system will really shine. It links together the essential components that modern pharmaceutical businesses need to thrive. These components include operational shopfloor efficiency, greater warehouse automation, generating more data which will further optimize the supply chain, and creating customer engagement through product identification.

We can also expect to see vast savings being made from the introduction of edge computing – a distributed IT architecture in which client data is processed at the periphery of the network, as close to the originating source as possible.

The impact of this on the pharmaceutical track-and-trace sector will be huge, especially where overall supply-chain operations are concerned. We have already seen the beginnings of a much more agile, local supply chain. The rapid uptake of digital barcode scanning systems combined with the very latest, cutting-edge technology, has made supply chains much more secure.

New-edge computing will tighten this up even further. It will power automatic, time-sensitive supply chain processes in warehouses, factories, and manufacturing facilities. These processes will lessen the need for human management and create optimal outcomes while eliminating the risk of error due to manual processes.

How track and trace can drive pharmaceutical compliance and meet international and regional directives for pharmaceutical products

The pharmaceutical sector is one of the most tightly regulated sectors on the planet. As the industry that is directly responsible for providing life-saving medicine which is relied upon by virtually every one of us at some point in our lives, it is clear to see why it is so heavily controlled.

However, even this is not enough. Criminals continue plying their forged medicines, leading to deaths and disabilities in the millions. It is predicted that 10% of pharma products worldwide are counterfeit, with the global counterfeit drug market exceeding an eye-watering $75bn. Research further estimates that the death-toll caused as a result could increase to 10 million people by 2050.

Therefore, pharmaceutical regulation is done to ensure safety, efficacy, and quality of the drugs available to consumers. This is accomplished through a range of regulatory activities over the course of a drug's life cycle including premarket screening and evaluation of new pharmaceuticals, inspection of manufacturing facilities, regulation of drug labeling and promotional activities, and the post-marketing surveillance of drugs following approval.

However, while regulations are to be welcomed, the fact is that it is becoming increasingly complex to navigate the multitude of rules around the world. And with some 80 percent of countries working to implement serialization as part of their strategy to fight counterfeit drugs and fraud, there are multiple geographical rules and nuances to be aware of. 

As an example, the US, Brazil, EU, Russia, Bahrain, China, South Korea, among others, have specific serialization requirements when selling drugs in their own regions, with more countries set to follow. These regulations are often specific to these countries – meaning that global providers need to constantly tweak their offering, so they meet the standards of the market where they are intended to end up.

How track and trace can solve regulatory challenges

Let’s not lose sight of the importance of meeting these regulatory requirements. They are done to ensure patients' safety and to allow manufacturers to stay competitive.

This is where the power of track and trace technology comes in.

It can harness together the required comprehensive suite of technology solutions, data gathering and communication networks that are needed to stay on top of the constantly evolving regulatory framework. And with the latest Industry 4.0. technology driving systems that can communicate with each other, even the systems of competing track and trace firms, important data can now be exchanged both quickly and securely, enabling a seamless ability to comply with specific regulatory frameworks.

Make no mistake about it, more regulations and more reporting requirements are on the way for all countries. They are constantly changing and evolving, it is a concept that never stands still.

The USA and the DSCSA

One example is the USA, with its Drug Supply Chain Security Act, or DSCSA, which establishes national standards for securing the prescription drug channel from its origins at the pharmaceutical manufacturer, right the way through the supply chain until it ends up at the dispenser.

The DSCSA has several provisions, including the ability for the drafting of additional requirements and enforcement criteria, which can suddenly put a drug out of compliance. It is therefore essential for pharmaceutical companies to remain constantly vigilant, watching for any changes and adjusting plans to make sure their products remain DSCSA compliant.

To remain compliant with the DSCSA, serialization is key. However, manufacturers must constantly be prepared to establish new data connections, with additional barcoding and labeling requirements often needing to be integrated at short notice into packaging systems.

Conclusion

It is clear to see why track and trace technology is becoming increasingly high on the agenda for pharmaceutical manufacturers.

The fact is that automation supports both compliance and efficiency – two of the holy grails for all businesses in the current climate. Indeed, I would go as far as to say that Industry 4.0. and serialization technology are the two most critically important developments relating to the pharma sector of 2022 and beyond.

If either of these developments are ignored, pharma firms will act much like a rudderless ship. While they may stay upright and remain afloat, they will go round and round in circles and will be late arriving at their end destination – certainly a long time after their competitors have arrived.

https://www.securingindustry.com/pharmaceuticals/viewpoint-how-track-and-trace-can-improve-business-efficiency-in-pharma-and-reduce-regulatory-burden-/s40/a14886/#.Y2P8IXbMLal

'Mind Blowing' Results in Teen Weight-Loss Trial

 In addition to lifestyle intervention, taking 2.4-mg semaglutide (Wegovy) once a week led to greater reductions in body mass index (BMI) and body weight for adolescents with obesity, a phase IIIa randomized trial showed.

At 68 weeks, the mean change in BMI from baseline was a 16.1% reduction with the glucagon-like peptide-1 (GLP-1) receptor agonist and a 0.6% increase with placebo (P<0.001), reported Daniel Weghuber, MD, of Paracelsus Medical University in Salzburg, Austria, and colleagues.

Furthermore, 73% of participants in the semaglutide group had weight loss of 5% or more compared with 18% of participants in the placebo group (P<0.001); meanwhile, 62% versus 8% respectively had weight loss of 10% or more, and 37% versus 3% had weight loss of 20% or more.

On average, participants on semaglutide lost 15.3 kg (33.7 lb) while those on placebo gained 2.4 kg (5.3 lb) at 68 weeks, according to findings presented at the Obesity Week annual meeting and published simultaneously in the New England Journal of Medicine.

"The degree of body weight reduction is unprecedented," said Weghuber in an interview with MedPage Today. "After years of frustration, all of a sudden patients were actually losing weight. They'd never seen that before."

The results suggest that semaglutide could outperform liraglutide (Saxenda), orlistat (Xenical, Alli), and phentermine-topiramate (Qsymia), the only weight-loss drugs that are currently FDA-approved for use in adolescents ages 12 and up.

Weghuber noted that the weight loss seen in the study was higher in adolescents than in adults who take semaglutide. It's not clear why this happened, he said, but it may have something to do with the drug's ability to suppress the appetite. Adolescents have a higher food drive than adults, he added. "They're more likely to eat and have even more difficulties than adults in resisting not eating."

During a presentation at the meeting, Claudia Fox, MD, MPH, a pediatrician and weight-loss specialist at the University of Minnesota, called the findings "mind-blowing."

"We're really at the doorstep of a new era in terms of how we are now going to be able to effectively treat our adolescent and pediatric patients with obesity," she said, adding that the high level of weight loss in the study is hardly ever seen in adolescents who take other weight-loss drugs. She also noted that adolescents aren't resistant to injectable medication.

Sarah Armstrong, MD, of Duke University in Durham, North Carolina, who spoke during the presentation after learning about the study findings, highlighted the upcoming pediatric guidelines that will recommend that childhood obesity be treated with "the most intensive level of treatment that a child is eligible to receive."

Going forward, she said, "I think we'll see a lot more people interested in these treatment options."

Several other measures improved significantly in the semaglutide group compared with the placebo group, including total cholesterol (-8.3 vs -1.3), VLDL triglycerides (-28.4 vs 2.6), and alanine transaminase levels (-18.3 vs -4.9).

Weghuber pointed out that there were also improvements in weight-related quality of life with semaglutide, which the authors wrote "was not observed in previous trials of phentermine-topiramate or liraglutide in adolescents with obesity."

Fox also highlighted the "dramatic" improvements in quality of life: "That's really what I think kids care about."

The participants who took semaglutide were more likely to have gastrointestinal side effects compared with the placebo group (62% vs 42%), as well as cholelithiasis (4% vs 0%), and serious adverse events (11% vs 9%). Gastrointestinal and gallbladder side effects are common among adults who take semaglutide.

Novo Nordisk, the manufacturer of semaglutide and funder of this trial, is still struggling to provide the drug to patients as a prolonged shortage continues. Many insurers including Medicare refuse to cover the drug for obesity, which costs more than $1,300 a month.

For this multinational double-blind trial, 201 participants ages 12 to 17 with obesity were included and randomized in a 2:1 ratio to semaglutide or placebo. Mean age was 15.4 years, 62% were girls, and more than three-fourths were white. Mean BMI at baseline was 37, and the average body weight was 107.5 kg (235.9 lbs). In addition, 13% had hypertension and 4% had type 2 diabetes.

All participants took part in a lifestyle intervention that included meetings with dietitians, and 134 were assigned to a weekly 2.4-mg subcutaneous dose of semaglutide, while 67 were assigned to placebo.

As for study limitations, Weghuber and colleagues pointed to the high number of female participants, the low proportions of ethnic minorities, and the small number of participants with type 2 diabetes.

Disclosures

The study was funded by Novo Nordisk, the maker of semaglutide.

Weghuber is a consultant for Novo Nordisk. Other study authors reported multiple disclosures, including employment by Novo Nordisk.

Fox reported being a site investigator for Novo Nordisk.

Armstrong had no disclosures.