Health-insurance stocks drop after Medicare Advantage proposes lower rates for 2024

 The proposed rate increase is lower than Wall Street expected

A proposal for lower-than-expected Medicare Advantage rates in 2024 has sent shares of publicly traded health insurers falling.

UnitedHealth Group Inc.'s (UNH) stock fell 1.2% in trading on Thursday, shares of Elevance Health Inc. (ELV) were down 3.3% and Molina Healthcare Inc.'s (MOH) stock tumbled 1.6%. Centene Corp.'s (CNC) stock was down 3.0%, shares of Cigna Corp. (CI) dropped 2.2% and Humana Inc.'s (HUM) stock declined 3.3%.

The Centers for Medicare and Medicaid Services on Wednesday proposed new Medicare Advantage rates for 2024, including a core rate increase of 2.09%. Rates have averaged 3.3% over the past five years, according to Oppenheimer analyst Michael Wiederhorn. A final decision is expected April 3.

"While the result is disappointing, the industry has been the beneficiary of some healthy increases in recent years," Wiederhorn told investors. "Additionally, we note that over the last five years, the final rule has come in 1.0% better than the proposal, on average."

Mizuho Securities analysts noted that the rate is lower than expected but still view the proposal as positive for managed-care companies.

"While the lower rate [year over year] could impact benefits offered to Medicare beneficiaries, we believe it will allow the industry to continue to grow in the high-single digits," Mizuho analyst Ann Hynes wrote in an investor note. "While the Biden administration has discussed potential reforms to Medicare Advantage, we do not believe the Biden administration will make major structural changes to the MA program this year."

The Health Care Select Sector SPDR ETF (XLV) was also down about 1% in trading on Thursday morning.

https://www.morningstar.com/news/marketwatch/20230202448/health-insurance-stocks-drop-after-medicare-advantage-proposes-lower-rates-for-2024

NRx: Safety board finds no concerns with bipolar candidate

 

• The Independent Data Safety Monitoring Board identified no safety concerns and issued a recommendation to continue trial enrollment.
• No treatment-related Serious Adverse Events with first 50 enrolled clinical trial participants

https://www.biospace.com/article/releases/nrx-pharmaceuticals-reports-recommendations-of-data-safety-monitoring-board-for-trial-of-nrx-101-in-patients-with-severe-bipolar-depression-and-subacute-suicidal-ideation-or-behavior/

Purple Biotech Acquires Immunorizon, Tri-Specific Antibodies for Cancer

 Purple Biotech Ltd. (NASDAQ/TASE: PPBT), a clinical-stage company developing first-in-class, effective and durable therapies that harness the power of the tumor microenvironment to overcome tumor immune evasion and drug resistance, today announced that it has entered into an agreement for the acquisition of Immunorizon Ltd., a private company developing potential multi-specific T and NK cell engager oncology therapies that selectively activate the immune response within the tumor microenvironment. The acquisition will provide Purple Biotech with an expanded portfolio of investigational tri-specific antibody compounds that target multiple antigens and offer the potential to further expand to additional targets.

Immunorizon’s lead asset is a conditionally-activated tri-specific antibody that engages both T cells and NK cells to mount a strong, localized immune response within the tumor microenvironment. The third arm of the lead compound specifically targets the Tumor Associated Antigen (TAA) 5T4, that is expressed in a variety of solid tumors and is correlated with advanced disease, increased invasiveness and poor clinical outcomes. 5T4 is a well-known target that has been validated by multiple pre-clinical and clinical programs. The drug candidates Purple Biotech is acquiring are differentiated from other multi-specific cell therapies targeting 5T4+ tumors by its cleavable capping technology, which confines the compound’s therapeutic activity to the local tumor microenvironment, and thereby potentially increases the anticipated therapeutic window in patients.  The acquisition will also provide Purple Biotech with additional preclinical assets targeting other TAAs through this technology platform.

https://www.biospace.com/article/releases/purple-biotech-expands-pipeline-of-first-in-class-therapeutics-with-acquisition-of-immunorizon-and-its-portfolio-of-tri-specific-antibodies-for-the-treatment-of-cancer-/

Arrowhead Starts Phase 1/2a Study of ARO-MMP7 for Idiopathic Pulmonary Fibrosis

 Arrowhead Pharmaceuticals, Inc. (NASDAQ: ARWR) announced today that it has dosed the first subjects in a Phase 1/2a clinical trial of ARO-MMP7, the company’s investigational RNA interference (RNAi) therapeutic designed to reduce the expression of matrix metalloproteinase 7 (MMP7) as a potential treatment for idiopathic pulmonary fibrosis (IPF).

“MMP7 is thought to play multiple roles in IPF pathogenesis, including promoting inflammation and aberrant epithelial repair and fibrosis,” said James Hamilton, M.D., MBA, chief of discovery and translational medicine at Arrowhead. “ARO-MMP7 offers a novel approach to potentially address the significant unmet medical need that exists for patients with IPF, who experience progressive decline of lung function, despite currently available therapies.”

AROMMP7-1001 (NCT05537025) is a Phase 1/2a single ascending dose and multiple ascending dose study to evaluate the safety, tolerability, pharmacokinetics, and pharmacodynamics of ARO-MMP7 in up to 56 healthy volunteers and up to 21 patients with IPF.

https://www.biospace.com/article/releases/arrowhead-pharmaceuticals-initiates-phase-1-2a-study-of-aro-mmp7-for-treatment-of-idiopathic-pulmonary-fibrosis/

Roche Flags Lower 2023 Sales On Declining Demand For COVID-19 Treatment, Diagnostics

 

• Roche Holdings AG 
  RHHBY
   released FY22 sales growth of 2% (+1% in CHF) to CHF 63.3 billion.
• Core operating profit increased by 3% (+1% in CHF), reflecting the good underlying business performance.
• The company warned that in 2023, a sharp decline in COVID-19 products would knock sales by around CHF 5 billion.
• Sales and core earnings per share were expected to decrease at a "low single-digit" percentage this year, the company said.
• "For the current year, we expect solid underlying growth in both divisions, which will largely compensate for the further significant drop in sales of roughly CHF 5 billion in COVID-19 products," Roche's CEO said.
• Pharmaceuticals Division sales increased by 2% to $45.6 billion on the solid growth of newer medicines, more than compensated for the impact of biosimilars and lower sales of Actemra/RoActemra (severe COVID-19).
• Roche's bestseller multiple sclerosis drug Ocrevus gained a currency-adjusted 17% in sales to just over CHF 6 billion in 2023, while its hemophilia treatment Hemlibra jumped 27% to CHF 3.8 billion.
• Newly approved Vabysmo for 'wet' age-related macular degeneration and diabetic macular edema generated CHF 591 million in sales.
• Diagnostics Division sales grew by 3% to CHF 17.7 billion on ongoing strong momentum in base business (+7%), more than compensating for the continuing decline in the demand for COVID-19 tests in 2H 2022.

https://www.benzinga.com/general/biotech/23/02/30687814/roche-flags-lower-2023-sales-on-declining-demand-for-covid-19-treatment-diagnostics

Silo Pharma Expands Intellectual Property Portfolio

  Silo Pharma, Inc. (Nasdaq: SILO) (“the Company”), a developmental stage biopharmaceutical company focused on merging traditional therapeutics with psychedelic research, today announced that the U.S. Patent and Trademark Office (USPTO) today issued U.S. Patent 11,491,120, titled “Pharmacological Prophylactics Against Stress-Induced Affective Disorders In Females.” The allowed claims protect the use of portfolio drug SPC-15 in a method of treating stress-induced affective disorders including anxiety and post-traumatic stress disorder (PTSD).

“After a comprehensive review by USPTO, we are pleased with the scope of the granted claims offering further protection for our novel SPC-15 technology and its market potential for anxiety, PTSD, and related disorders,” said Eric Weisblum, Chief Executive Officer

Through its commercial evaluation license agreement with Columbia University, the Company holds an option to license certain assets currently under development by Columbia, including potential treatments for stress-induced affective disorders and Alzheimer’s disease.

SPC-15 is a targeted prophylactic using ketamine compositions as a method of treatment and prevention for stress-induced affective disorders including PTSD. The treatment predicts levels of severity or progression of such disorders and their metabolomic biomarkers’ response to pharmacological treatments.

With the patent announced today, the Company expands its intellectual property and technology rights for the treatment of rare diseases,

https://finance.yahoo.com/news/silo-pharma-announces-expansion-intellectual-135000252.html

Biden economic adviser Deese is stepping down

 President Joe Biden on Thursday said Brian Deese, who heads the White House's National Economic Council, is departing. Biden said in a statement that he's grateful to Deese's family "for letting us borrow Brian" and he knows "they're excited to welcome him home." Lael Brainard, the vice chair of the Federal Reserve, has emerged as a contender to take Deese's job, though others are also under consideration.

https://www.morningstar.com/news/marketwatch/20230202432/biden-economic-adviser-deese-is-stepping-down