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Friday, July 14, 2023

Regenerative Medicine Challenges Hinder Their Development and Use: GAO

 Regenerative medicine technologies, including CAR-T cell and stem cell therapies, are highly promising medical advancements but are being held back by the lack of widely accepted standards and guidelines to govern their use, development and manufacture, finds a report by the U.S. Government Accountability Office released Thursday.

Unlike typical therapies that treat symptoms, regenerative medicines restore or repair the function of cells, tissues and organs afflicted by diseases. This approach enables highly personalized treatment regimens and may eventually lead to cures for conditions that are currently considered terminal, chronic or untreatable.

However, regenerative medicines also present significant standardization, regulation and manufacturing challenges that may affect the development and use of these technologies, according to the GAO.

The watchdog group found that developing standards is challenging “because these technologies are complex and rapidly evolving” and due to “the need to reach consensus across a range of stakeholders and the need for accurate, well-developed measurement science in the field.”

Thursday’s report noted that, unlike regulations, standards can be voluntary and are not typically developed by government agencies. As a result, “broad buy-in is important for them to be accepted and used” but “even if stakeholders agree that a particular standard should exist, it can be difficult to reach agreement on the details.”

When it comes to the regulatory environment, the GAO found it can be challenging for companies to “navigate the complex regulatory framework for regenerative medicine products, which may span multiple FDA centers and pathways to approval.” What’s needed, the report said, are “clear and predictable regulations” to “ensure that product developers are able to understand the data and other requirements needed for approval without unnecessary delays or uncertainty.”

Specifically, the GAO’s report found that current regulatory pathways may be insufficient for regenerative medicine technologies and therapies that “blur the lines” between drugs, biologics, and devices, making their paths to approval or licensure more uncertain.

In the area of manufacturing, the GAO cited three challenges related to the widespread and efficient manufacture of regenerative medicines: the lack of infrastructure, the difficulties in ensuring quality, and workforce shortages.

“The cell, tissue, and organ products being developed for regenerative medicine will require more complex manufacturing facilities than are currently used to produce small-molecule drugs,” according to the GAO. In addition, the report noted that “stakeholders often lack consensus on how to measure quality for regenerative medicine products” with “few standardized reference materials that can be used to evaluate a finished product.”

Workforce shortages of skilled technical personnel, who work on regenerative medicine manufacturing lines, are another major challenge. “As demand for regenerative medicine products grows, workforce needs will also continue to grow,” the report said, while increasing the need for technical workers in multiple locations and not just cities that already have a large biomedical workforce.   

To address these barriers and help maximize the potential of regenerative medicine, the GAO report made several policy recommendations. They included increasing investment in the development of industry guidelines and facilitating greater interaction between regulatory experts and smaller biotech companies, particularly those that are still early in the development process.

On the manufacturing front, the GAO report proposed increasing oversight and providing better feedback to suppliers to improve their consistency, especially regarding starting materials. The watchdog group also recommended that federal agencies could help by supporting public-private partnerships that can share costs for manufacturing facilities.

The Alliance for Regenerative Medicine, the advocacy organization which represents the industry, has previously warned that manufacturing continues to be a major challenge for the sector due to a lack of standardization and that manufacturing scale-up has often become an obstacle to regulatory approval and commercialization.

“The GAO report illustrates the transformative potential of regenerative medicine, but also the challenges that stakeholders across government, industry, and academia must collaborate on to ensure these technologies benefit as many patients as possible,” Stephen Majors, global head of communications at the Alliance for Regenerative Medicine (ARM), said in an email to BioSpace.

Majors said that the report “reflects contributions from ARM experts on topics including standards development, workforce challenges in both industry and at the FDA, the need for clear regulatory guidance, and the importance of increased interactions among regulatory experts, especially early in the development process.”

https://www.biospace.com/article/regenerative-medicine-challenges-hinder-their-development-and-use-gao/

TRxADE HEALTH, Inc. Amends Definitive Merger Agreement with Superlatus

 TRxADE HEALTH, Inc. (NASDAQ: MEDS) (“TRxADE”), a pharmaceutical exchange platform provider, announced today that it entered into an amended and restated merger agreement with Superlatus, Inc. (“Superlatus”), a U.S.-based holding company of food products and distribution capabilities, which amends the terms of the original merger agreement entered into by the parties on June 30, 2023.

As restated, upon closing of the merger, shareholders of Superlatus will receive an aggregate of 30,821,941 shares of MEDS stock at $7.30 per share, which will be comprised of (i) 136,441 shares of MEDS common stock, representing 19.99% of the total issued and outstanding MEDS common stock at the closing of the merger, and (ii) 306,855 shares of a new class of MEDS non-voting convertible preferred stock with a conversion ratio of 100 to one, multiplied by such shareholder’s pro rata percentage ownership.

In addition, the amended and restated merger agreement provides that, effective one (1) business day immediately prior to the closing date (the “MEDS Rights Record Date”), TRxADE will issue to the shareholders of TRxADE as of the MEDS Rights Record Date, including the independent directors who are entitled to certain amount of MEDS common stock in connection with their 2023 annual compensation and regardless of whether the common stock has been issued or vest before the MEDS Rights Records Date (collectively, the “MEDS Rights Shareholders”), a non-transferrable right to receive one share of MEDS common stock at no cost (the “MEDS Rights”), with seven (7) MEDS Rights issued per share of common stock of TRxADE held as of the MEDS Rights Record Date.

For a full description of the amended and restated merger agreement, please see TRxADE’s Current Report on Form 8-K filed today with the Securities and Exchange Commission (the “SEC”).

https://finance.yahoo.com/news/trxade-health-inc-amends-definitive-203000504.html

Nutriband ups credit line pre-FDA fentanyl product application

 Company targeting FDA submission in the first half of 2024

AVERSA Fentanyl is the flagship product of the Company's AVERSA™ Platform

Nutriband Inc. ("Company") (NASDAQ:NTRB)(NASDAQ:NTRBW), a developer of transdermal pharmaceutical products, today announced that it has expanded its existing Credit Line facility to $5 Million USD to fund the continued development and regulatory submission process for the Company's patented lead product platform, AVERSA™ Fentanyl, an abuse-deterrent fentanyl transdermal system. The Company is targeting FDA submission for AVERSA™ Fentanyl in the first half of 2024. AVERSA Fentanyl is the flagship product of the Company's AVERSA™ Platform.

AVERSA™ Fentanyl combines Nutriband's proprietary AVERSA™ abuse-deterrent transdermal technology and Kindeva Drug Delivery's FDA-approved transdermal fentanyl patch system. AVERSA™ Fentanyl was recently estimated to have the potential to reach peak annual US sales of $80M - $200M.


https://finance.yahoo.com/news/nutriband-increases-existing-credit-line-132000185.html

Karuna: Blair Sees Buying Opportunity

 William Blair notes increasing investor inbounds on Karuna Therapeutics Inc 

 given the recent pullback, as the stock is down 13% off June 2023 highs and 25% off 52-week highs after the EMERGENT-2 readout

The analyst sees this as a buying opportunity ahead of an NDA filing for a novel mechanism antipsychotic, KarXT, expected in Q3 (likely late September) as Karuna transitions into a commercial-stage entity.

Assuming that Karuna submits its New Drug Application (NDA) in Q3 with the usual review time, KarXT might secure FDA approval in 2H 2024. Investors have shown keen interest in whether Karuna itself can set KarXT on a launch path to reach the high peak sales figures of antipsychotic drugs from peers, such as Abilify, Risperdal, Zyprexa, and Seroquel.

The analyst notes that management said a 300-400-person-strong salesforce would be implemented to target roughly 30,000 prescribing psychiatrists and nurse practitioners. 

Karuna has $1.5 billion in cash to fund hiring and operations through 2026.

Many investors continue to consider Karuna as a potential acquisition target. While such transactions are hard to forecast, the analyst says there has been a growing trend since 2015 where assets in late-stage clinical trials or early commercial stages occupy a larger portion of M&A activity.

A frequently overlooked factor is that antipsychotics belong to a Medicare Part D protected drug class, implying automatic coverage for KarXT upon approval. 

Considering that 90% of individuals with schizophrenia are covered by Medicare/Medicaid and 90% are automatically placed in zero-premium Medicare Part D plans due to low-income subsidies, William Blair envisages wide-ranging and immediate avenues for KarXT reimbursement.

https://www.benzinga.com/analyst-ratings/analyst-color/23/07/33227914/what-are-latest-investor-thoughts-on-karuna-therapeutics-analyst-sees-buying-opport

Why Are Frequency Therapeutics Shares Surging

 Korro Bio Inc and Frequency Therapeutics Inc 

 announced an all-stock merger transaction

Under the merger agreement's terms, stockholders of Korro Bio will receive newly issued shares of Frequency Therapeutics.

Frequency Therapeutics has discontinued developing its remyelination program for Multiple Sclerosis as it explores strategic alternatives for the program

Suppose Frequency Therapeutics has not otherwise monetized its remyelination program before the closing of the proposed merger. 

In that case, Frequency Therapeutics stockholders of record will be issued a contingent value right for each outstanding share.

The combined company will focus on advancing Korro Bio's portfolio of RNA editing programs and is expected to operate under Korro Bio, Inc. and will apply to trade on Nasdaq under the ticker symbol "KRRO."

Korro Bio has secured commitments from a syndicate of investors for a planned concurrent $117 million financing.

The combined company is expected to have approximately $170 million in cash, cash equivalents, and marketable securities at close after estimated transaction expenses. 

The Pro-forma cash balance is expected to provide a cash runway into 2026. The merger and related financing are expected to close in the fourth quarter of 2023.

Korro Bio is advancing its lead program for AATD to a clinical trial and intends to submit a regulatory filing in the second half of 2024. 

The combined company will be led by current members of the Korro Bio management team, including Ram Aiyar, President & Chief Executive Officer, Steve Colletti, Chief Scientific Officer, and Vineet Agarwal, Chief Financial Officer.

https://www.benzinga.com/general/biotech/23/07/33229914/why-are-frequency-therapeutics-shares-surging-today

HSBC upgrade Pfizer rating from Sell to Buy

  The target price is unchanged at USD 50

https://www.marketscreener.com/quote/stock/PFIZER-INC-23365019/news/PFIZER-INC-From-Sell-to-Buy-by-HSBC-44337679/

Strong U.S. demand eases pressure on Novo to show weight-loss drug's health benefits

 Soaring U.S. demand for Novo Nordisk's weight-loss drug has reduced the pressure from investors on the company to deliver strong results in its trial to test whether the drug also has medical benefits, eight investors and analysts say.

Novo is expected to publish in August the results of a large study called SELECT, which is assessing whether Wegovy reduces the risk of major cardiovascular events like strokes or heart attacks in overweight or obese people with a history of heart disease.

Investors had been banking on the study results being the next big driver of the company's shares. Showing a clear medical benefit could help convince cost-conscious European governments and health insurers to pay for the treatment.

But with demand from Americans seeking to lose weight outstripping supply for now, they say the results are less relevant in the short term.

Novo's shares have soared nearly 120% since Wegovy's U.S. launch two years ago. The Danish drugmaker overtook Nestle in March to become Europe's second-most valuable listed company after LVMH.

Brokerage Berenberg on Thursday published a poll of investors showing the trial may not need to show as big a health benefit for shares to rise as previously thought.

That's due to high demand and after Novo raised its profit outlook in April, said Berenberg analyst Kerry Holford.

The majority would consider the trial a success if results showed a risk reduction of at least 15%, while 44% said 10-14% would be acceptable, the poll said.

Most investors surveyed expected that if the study showed risk reduction of 17%, shares would rise 5 to 10%, while if it was between 15 to 17% risk reduction, shares could rise up to 5%.

If the risk reduction was between 10 and 14%, shares would decrease by less than 5%.

A year ago, investors said a risk reduction of 10 to 14% in the trial would put significant downward pressure on the stock, Holford said.