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Monday, January 8, 2024

Veru Submits IND for Enobosarm to Prevent Muscle Loss While Augmenting Fat Loss with GLP-1

 Veru Inc. (NASDAQ: VERU), a late clinical stage biopharmaceutical company focused on developing novel medicines for the treatment of obesity, oncology, and viral induced acute respiratory distress syndrome, today announced submission of an Investigational New Drug (IND) application with the U.S. Food and Drug Administration for the development of enobosarm for obesity.

Glucagon-like peptide-1 receptor agonist (GLP-1 RA) drugs are very effective drugs that result in significant weight loss. Unfortunately, up to 50% of the total weight loss comes from muscle which is problematic as muscle is necessary for metabolism, strength, and physical function. According to the CDC, 41.5% of older U.S. adults have obesity and could benefit from a weight loss medication. Up to 34.4% of these patients over the age of 60 have sarcopenic obesity which means patients are overweight or obese and also have age-related low muscle mass. Sarcopenic obese patients are potentially at the greatest risk for developing critically low amounts of muscle mass when taking a GLP-1 RA medication for the treatment of obesity. Patients with critically low muscle mass may experience muscle weakness leading to poor balance, decreased gait speed, mobility disability, loss of independence, falls, bone fractures and increased mortality.

“We believe there is an urgent unmet medical need for a drug that when given in combination with GLP-1 RA therapy prevents the loss of muscle, while preferentially reducing fat in not only overweight or obese patients, but especially for sarcopenic obese or overweight elderly patients who are at-risk for developing muscle atrophy and muscle weakness leading to frailty,” stated Mitchell Steiner, M.D., Chairman, President, and Chief Executive Officer of Veru Inc. “Today’s announcement is an important milestone for Veru and ultimately for the many patients who desire to avoid loss of muscle when taking a GLP-1 RA drug for weight loss.”

Planned Phase 2b Enobosarm for Obesity Clinical Trial
The Company plans to conduct a Phase 2b multicenter, double-blind, placebo-controlled, randomized, dose-finding clinical trial designed to evaluate the safety and efficacy of enobosarm 3mg, 6mg, or placebo as a treatment to augment fat loss and to prevent muscle loss in approximately 90 randomized sarcopenic obese or overweight elderly patients receiving a GLP-1 RA who are at-risk for developing muscle atrophy and muscle weakness. The primary endpoint of the Phase 2b clinical trial will be the change in lean body mass (muscle) from baseline to 3 months and key secondary endpoints will be the change from baseline to 3 months in total fat mass, insulin resistance, total body weight, and physical function measured by the stair climb test. The primary 3-month clinical data from the Phase 2b clinical trial is currently expected in calendar Q4 2024. The purpose of the Phase 2b clinical trial is to select the optimal dose of enobosarm in combination with a GLP-1 RA that best preserves muscle and reduces fat after 3 months of treatment to advance into a Phase 3 obesity or overweight clinical trial.

After completing the 3-month efficacy dose-finding portion of the Phase 2b clinical trial, participants will then continue into an open label extension trial where all patients will receive 6 mg of enobosarm for 3 months to determine the ability of enobosarm to rescue or reverse muscle loss and prevent fat and weight rebound after stopping a GLP-1 RA drug.

https://www.biospace.com/article/releases/veru-submits-ind-application-to-fda-for-the-development-of-enobosarm-to-prevent-muscle-loss-while-augmenting-fat-loss-in-combination-with-glp-1-drugs-for-weight-loss/

Allurion prelims and 2024 outlook

 Allurion Technologies, Inc. (“Allurion” or the “Company”) (NYSE: ALUR), a company dedicated to ending obesity, today announced preliminary unaudited results for the fourth quarter and full year 2023. The Company also issued its preliminary 2024 outlook, reflecting an increased focus on driving sustained procedural volume growth ahead of key FDA milestones while reducing cost structure, optimizing capital structure, and accelerating the path to profitability.

“We believe procedure volume growth of 30% in 2023 substantiates the significant underlying demand for the Allurion Program, particularly as the efficacy of our offerings continues to be validated by patient results,” said Dr. Shantanu Gaur, CEO of Allurion. “Simultaneously, we swiftly adapted our spending to the evolving macro environment, channeling investments into the most promising aspects of our strategy and preserving cash as we advance towards FDA milestones for the Allurion Balloon. I am enthusiastic about our growth catalysts in 2024 and beyond, as we continue to enhance outcomes for patients and create value for our shareholders."

Preliminary Unaudited 2023 Financial Highlights

  • 2023 full year revenue is expected to be in the range of $53 - $54 million with gross profit sustained at 77% - 78% of revenue
  • Fourth quarter revenue is expected to be in the range of $8.1 - $8.3 million, reflecting macroeconomic headwinds in certain markets leading to temporarily lower re-order rates during the period as distributors and accounts in certain markets adjusted their inventory levels
  • Procedural volume grew by 30% compared to 2022, reflecting strong and growing demand for the Allurion Program, particularly in Europe where procedural volume grew by 41% in 2023 compared to 2022 and 44% in the fourth quarter compared to the same period in 2022
  • Cash balance as of December 31, 2023 of $38 million reflects cash burn of $22 million in the fourth quarter and paydown of the term loan by $20 million, reducing outstanding principal to $40 million
  • Expense reductions initiated in the fourth quarter of 2023 and continued in 2024 include a reduction in force of approximately 30% of headcount since December 2023, which is expected to reduce 2024 cash burn to approximately $7 - $8 million per quarter

2024 Outlook

  • Anticipated procedural volume growth of approximately 20%, despite a reduction in overall marketing spend, reflecting increased penetration in key direct markets and reallocation of marketing spend to more efficient channels
  • Revenue guidance of $60 - $65 million, reflecting growth of approximately 13% - 23% year over year
  • Expected gross margins of 77-79%, reflecting durable pricing of our gastric balloon as well as initial commercialization efforts of the digital platform
  • Targeted cash burn reduced to approximately $7 - $8 million per quarter

Key 2024 Growth Catalysts

  • Accelerated procedure volume growth across direct markets where Allurion has fully established direct sales and support models
  • Release of new clinical data, including the AUDACITY FDA pivotal trial read-out expected by end of year, and additional data validating Allurion’s best-in-class weight loss and weight maintenance platform
  • Increasing awareness and interest in non-invasive weight loss driven by the rise of GLP-1 drugs with the potential for sustained long-term tailwinds for Allurion
  • Rapid scaling of Allurion’s digital capabilities including new commercial partnerships and expansion of existing high-margin deals, catalyzed by the release of its AI-powered Coach Iris platform and the addition of Brian Conyer to lead digital commercialization efforts
  • Growth in existing strategic partnerships, including Allurion’s partnership with Medtronic

Veracyte Announces Preliminary Full-Year 2023 Results, Acquisition of C2i Genomics

 Veracyte, Inc. (Nasdaq: VCYT), a leading cancer diagnostics company, today announced preliminary unaudited financial results for the fourth quarter and full year ended December 31, 2023. The company also announced it has reached a definitive agreement to acquire C2i Genomics, Inc. a minimal residual disease (MRD) detection company, adding whole-genome MRD capabilities to its novel diagnostics platform and positioning Veracyte to expand its offerings along the cancer care continuum. Under the terms of the agreement, Veracyte will pay $70 million in Veracyte shares at closing, and up to an additional $25 million based on the achievement of future performance milestones over the next two years, payable in Veracyte shares or cash at Veracyte’s election.

Preliminary Unaudited Financial Results and 2024 Financial Outlook

For the fourth quarter ended December 31, 2023, as compared to the same period of 2022, Veracyte expects to report:

  • Revenue of between $95 million and $96 million, an increase of between 18% and 20%
  • Total test volume of approximately 34,000, an increase of 21%

For the full year ended December 31, 2023, as compared to the same period of 2022, Veracyte expects to report:

  • Revenue of between $358 million and $359 million, an increase of 21%
  • Total test volume of approximately 127,000, an increase of 24%

Veracyte expects to report cash, cash equivalents and short-term investments of more than $215 million as of December 31, 2023.

“We had an outstanding fourth quarter and finished 2023 with continued growth driven by our Afirma and Decipher businesses,” said Marc Stapley, Veracyte’s chief executive officer. “I could not be prouder of the Veracyte team and their commitment to our physician customers and their patients, and look forward to continued strong execution in 2024 and beyond.”

Veracyte is initiating 2024 testing and product revenue guidance of 13% to 15% growth, partially offset by declining biopharma and other revenue, resulting in total company revenue growth of 10% to 12%, or $394 million to $402 million. Further, 2024 cash, cash equivalents and short-term investments ending balance is expected to grow by 10% to 12%, in line with total company revenue growth, excluding approximately $8 million of one-time acquisition related items but including the expenses required to develop MRD assays.

https://www.biospace.com/article/releases/veracyte-announces-preliminary-full-year-2023-results-acquisition-of-c2i-genomics-to-add-minimal-residual-disease-capabilities-to-its-novel-diagnostics-platform/

Two Patient Deaths Force Vertex to Pause Diabetes Trial

 Vertex Pharmaceuticals on Sunday reported that it had paused a Phase I/II study of its investigational islet cell therapy VX-880 in type 1 diabetes following two patient deaths.

In its announcement, the Boston, MA–based company said that the deaths were “unrelated” to the study treatment and that the study pause was “protocol-specified.” Global regulatory authorities and an independent data monitoring committee will review the “totality of the data” from this study.

VX-880 is an investigational, stem cell–derived insulin-producing islet cell therapy that Vertex says restores the pancreas’ ability to release insulin in response to blood glucose levels. According to Vertex’s website, the candidate is fully differentiated and is designed to be infused in the hepatic portal vein and be used in conjunction with standard immunosuppression.

Vertex is currently running a three-part Phase I/II study of VX-880 in patients with type 1 diabetes who have recurrent hypoglycemic events and an impaired awareness of hypoglycemia. As of the last data cut-off, Vertex had already dosed 14 patients, all of whom showed islet cell engraftment and were able to produce endogenous insulin.

Additionally, VX-880 lowered HbA1c levels in patients to below 7% and eliminated the need for exogenous insulin.

Aside from the two patient deaths, Vertex reported that VX-880 had a safety profile consistent with that of immunosuppressives. The company had previously released data for VX-880 in October 2023 showing that two patients who had been in the study for at least 12 months did not experience serious hypoglycemic events between 90 days and 12 months. At the time, Vertex also said that VX-880 was “generally well tolerated,” with most adverse events being mild or moderate in severity.

In May 2022, the FDA placed a clinical hold on VX-880, citing concerns about dose escalation. According to the regulator, there was not enough information at the time to support increasing the dose of the islet cell therapy in patients. The FDA lifted the regulatory pause in July 2022.

Vertex also provided updates for several of its programs in its Sunday press announcement. Most notable, however, was the absence of highly-anticipated data from the Phase III program of its acute pain candidate VX-548.

The company said in its news release that it had completed three Phase III studies for VX-548 in acute pain, but that its results will be available in “early 2024.”

https://www.biospace.com/article/two-patient-deaths-force-vertex-to-pause-diabetes-trial/

Vincerx: Compelling Clinical Efficacy of Enitociclib-Venetoclax-Prednisone Combo in Lymphoma

 Investigators from the National Institutes of Health (NIH) report 2 partial responses (PR) in 3 peripheral T-cell lymphoma (PTCL) patients and 1 PR in 2 double-hit diffuse large b-cell lymphoma (DH-DLBCL) patients in ongoing dose-escalation trial of enitociclib in combination with venetoclax and prednisone

Vincerx remains on target to report early clinical data from lead VersAptx™ platform compounds, VIP236 (early 2024) and VIP943 (mid 2024)

https://www.globenewswire.com/news-release/2024/01/07/2805016/0/en/Vincerx-Pharma-Announces-Compelling-Clinical-Efficacy-of-Enitociclib-in-Combination-with-Venetoclax-and-Prednisone-in-Lymphoma.html

Novartis in advanced talks to buy Cytokinetics

 Novartis is close to clinching an acquisition of Cytokinetics and the deal could be finalized as soon as this week, the Wall Street Journal reported on Monday, citing people familiar with the matter.

https://finance.yahoo.com/news/novartis-advanced-talks-buy-cytokinetics-180544570.html

Neurogene Business Update and 2024 Outlook

 DSMB clears third pediatric patient for dosing in ongoing NGN-401 Phase 1/2 clinical trial for Rett syndrome; On track to dose third pediatric patient in early 1Q:24

CTA clearance obtained from UK MHRA for NGN-401

Ended 2023 in a strong financial position with approximately $200 million in cash and runway into 2H:26

https://www.businesswire.com/news/home/20240105603007/en/