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Tuesday, March 18, 2025

Sarepta Shares Crash After Patient on DMD Gene Therapy Elevidys Dies

 

After a patient taking the Duchenne muscular dystrophy gene therapy Elevydis died of liver injury, Sarepta will update the label to reflect the safety signal.

A patient taking Sarepta Therapeutics’ approved Duchenne muscular dystrophy gene therapy Elevidys has died, the biotech announced Tuesday.

The death was linked to acute liver failure, which Sarepta maintains is not a new safety signal. Elevidys and other gene therapies that use adeno-associated virus (AAV) vectors are known to have acute liver injury as a side effect and that risk is highlighted as an adverse event in Elevidys’ prescribing information. Sarepta also insists that the gene therapy’s benefit-risk profile “remains positive.”

Sarepta has reported the death to the relevant health authorities and will update Elevidys’ label to “appropriately represent this event,” the biotech noted in its Tuesday release. The company’s stock plunged around 22% as the markets opened on Tuesday to $78.54, down from $101.35 at the previous market close.

The death “represents a severity of acute liver injury not previously reported for Elevidys,” Sarepta noted. The patient had also tested positive for cytomegalovirus (CMV) infection, which can damage the liver and is “a possible contributing factor” to the death, according to the announcement. Sarepta expressed “profound” sadness over the death.

BMO Capital Markets said in a Tuesday note that despite the death, “we think Elevidys’ benefit still outweighs the risk,” pointing to the patient’s CMV infection as a mitigating actor. BMO also highlighted two patients who died after taking Novartis’ spinal musclar atrophy gene therapy drug Zolgensma in 2022. That drug today generates north of $1 billion annually. In another note on Tuesday, analysts at Jefferies said they expect the patient death will “pressure” Sarepta’s stock as “uncertainty around [Elevidys’] safety will loom—unless [Sarepta] deems the death not to be drug-related.”

Nevertheless, Jefferies points to a potential bright spot for Sarepta, noting that liver injury typically occurs within the first 90 days of Elevidys treatment. “Presumably, the patient was dosed with Elevidys recently,” the analysts continued, adding “mitigating these types of events could be manageable with very careful monitoring.”

Jefferies also pointed out that “the unmet need in DMD [Duchenne muscular dystrophy] remains high,” which could be a “bull case” for Sarepta.

Elevidys isn’t the first Duchenne therapy to be linked to a fatal outcome. In 2021, Pfizer was forced to suspend a Phase Ib trial for its investigational gene therapy PF-06939926—which would later get renamed as fordadistrogene movaparvovec—following the death of a non-ambulatory patient.

Three years later, in March 2024, the same therapy resulted in another patient death in the Phase II DAYLIGHT trial. A month later, fordadistrogene movaparvovec failed to significantly improve motor function versus placebo in the Phase III CIFFREO trial in Duchenne. Pfizer ultimately axed the gene therapy.

Meanwhile, in November 2022, an FDA-sanctioned trial from the non-profit biotech Cure Rare Disease for a CRISPR-based Duchenne therapy also led to the death of the only enrolled patient. A study in September 2023 pointed to the AAV vector as the potential cause of the mortality, which could have triggered an immune reaction in the patient.

https://www.biospace.com/drug-development/sarepta-shares-crash-22-after-patient-on-dmd-gene-therapy-elevidys-dies

Sana Biotechnology upgraded at Citizens on valuation

 

  • Sana Biotechnology (NASDAQ:SANA) was upgraded to Market Outperform from Market Perform at Citizens as the research broker believes the company's stock is undervalued.
  • SANA is down 20% in morning trade.
  • "With three-month follow-up from the modified pancreatic islet cell IST program validating the HIP platform in T1D, SC291 data in autoimmune diseases (AID) expected in 2025, and a cash position of $152.5MM, we believe Sana shares are undervalued, given the stock has retraced some of its gains after the initial T1D data release," Citizens' analysts said.
  • Citizens has a price target of $5 for the company.
  • SANA stock has fallen 75% in the last twelve months.

MoonLake earns new Outperform at RBC Capital Markets on lead drug

 MoonLake Immunotherapeutics (NASDAQ:MLTX) traded higher on Tuesday after RBC Capital Markets launched its coverage with an Outperform recommendation and a $67 price target, citing an annual sales opportunity worth up to $2B for its lead asset sonelokimab (SLK).

Analyst Brian Abrahams’ bullish view comes as MoonLake (NASDAQ:MLTX) prepares to share data from a Phase 3 trial for SLK against a skin condition known as hidradenitis suppurativa (HS) in mid-2025.

The analyst expects the Swiss biotech’s trial VELA to show statistically significant benefits for SLK in HS and indicate a placebo-adjusted effect outperforming main competitor Bimzelx developed by UCB (OTCPK:UCBJF) (OTCPK:UCBJY).

Even with a less differentiated clinical profile, SLK can create a market opportunity worth $500M-$1B in annual sales, and if approved as an earlier line therapy, it creates an annual sales opportunity worth $2.5B, Abrahams argued.

“While stepping in post-data for a large, underappreciated HS market could be a strategy for more risk-averse investors, with our view that most data scenarios play out positively for SLK and MLTX shares, we would be buyers here,” he added.

https://www.msn.com/en-us/money/markets/moonlake-earns-new-outperform-at-rbc-capital-markets-on-lead-drug/ar-AA1Bapfk

RFK Jr.’s Next Targets Are Companies Making Baby Formula

 Health and Human Services Secretary Robert F. Kennedy Jr. is taking on baby formula products, the latest in his sweeping review of ingredients used in the US food supply.

Under Kennedy, the US Food and Drug Administration will begin a comprehensive examination of the nutrients used in infant formula and increase testing for heavy metals and other contaminants, HHS said in a statement Tuesday. The announcement comes as Kennedy was scheduled to meet with executives of companies that make infant formula, according to people familiar with the roundtable discussion.

It’s unclear exactly which companies were represented at the meeting. Firms that sell infant formula include Abbott Laboratories, which makes Similac, Enfamil maker Reckitt Benckiser Group Plc, and relative newcomer Bubs Australia Ltd. HHS didn’t respond to a request for comment on the meeting.

Kennedy planned to discuss nutritional standards and shoring up the supply chain, one of the people said. Kennedy posted on social media in May 2024 that he was concerned about toxic metals in formula. During his presidential campaign, he said that if he were to be elected, the FDA, a part of HHS that he now oversees, would scrutinize formula ingredients.

Abbott shares fell 1.1% at 2:35 p.m. in New York. Reckitt, whose Mead Johnson unit makes formula, lost as much as 1.5% in London. Abbott, Reckitt and Bubs didn’t respond to requests for comment.

The US encountered major shortages of baby formula in 2022 after FDA inspectors found bacteria linked to two infant deaths in Abbott’s Michigan factory. When inspectors found dirty conditions at the plant, agency leaders shut it down, leading to an interruption in supply. The FDA released a long-term strategy earlier this year to help boost the resiliency of the US infant formula supply.

Abbott and Reckitt have also faced lawsuits over claims that the companies hid potential risks of formula for infants born prematurely. Kyle Diamantas, the new acting director of FDA’s food division, defended Abbott in some of those lawsuits in his role as an attorney at the law firm Jones Day, the New York Times reported.

Kennedy, a lawyer who was tapped to head HHS after joining US President Donald Trump’s campaign, has put his sights on foods that are ultra-processed or contain artificial dyes. He has said that he plans to investigate their links to chronic diseases, a key point in his Make America Healthy Again agenda.

The health secretary met last week with women who support him that he calls “MAHA Moms,” according to a social media post from HHS. He also met with food industry executives to pressure them to remove artificial dyes from their products.

https://finance.yahoo.com/news/rfk-jr-next-targets-companies-154844689.html

USDA to begin disbursing economic aid to farmers amid low prices

 The U.S. Department of Agriculture will on Wednesday begin accepting applications from farmers affected by low commodity prices for economic aid passed by Congress last year, an agency official said on Tuesday.

The stop-gap government funding package passed by Congress last December included $10 billion for economic assistance, a supplement to existing farm subsidy programs that support U.S. crops.

U.S. farmers are struggling with slumping prices that have made some crops more expensive to plant than sell, and are expected to plant more corn this year in a bid to eke out a profit.

The Emergency Commodity Assistance Program will pay farmers a flat rate by acreage for eligible commodities like wheat, corn, barley, and oats, said Brooke Appleton, the USDA's deputy under secretary for farm production and conservation, on a call with reporters.

Once farmers' applications are approved, they will receive payments directly to their bank accounts within three business days on average, Appleton said.

Congress also passed $20 billion in farm aid for natural disasters in 2023 and 2024, and the USDA will release more details on that aid soon, which will include money for livestock losses due to drought and flood, Appleton said.

Farmers have taken economic hits in the early weeks of the Trump administration, including from a broad USDA spending freeze and potential market loss from tariffs.

https://www.usnews.com/news/top-news/articles/2025-03-18/usda-to-begin-disbursing-economic-aid-to-farmers-amid-low-prices

'Gates warns White House he can't fill shortfalls in US global health funding'

Bill Gates is personally lobbying Trump administration officials to keep funding health programs worldwide, from childhood vaccination to HIV treatment, and warning that his foundation cannot step in to fill gaps, two sources familiar with the matter told Reuters.

Gates, the billionaire Microsoft co-founder turned global health philanthropist, met with the National Security Council as well as Republican and Democratic lawmakers in recent weeks to press that case, the sources said.

Soon after his January 20 inauguration, President Donald Trump moved to dismantle the U.S. Agency for International Development, cutting more than 80% of contracts and freezing billions of dollars for everything from emergency food assistance to malaria prevention.

The Trump administration, led by the State Department, is reviewing what kinds of foreign aid will remain under its “America First” policy, with a list of around 30 global health projects for consideration, one of the sources said.

“Bill was recently in Washington D.C. meeting with decision makers to discuss the life-saving impact of U.S. international assistance and the need for a strategic plan to protect the world’s most vulnerable while safeguarding America’s health and security,” said a spokesperson for the Gates Foundation, his charitable organization.

Gates told the officials he met with that his foundation cannot replace the role of the U.S. government, the sources said. Gates Foundation directors have also said publicly that no foundation has that capability.

At the same time, many Gates Foundation top priorities like eradicating polio and fighting malaria will be hit by the U.S. pullback. In such cases, the Foundation would need to decide if and how it can keep those programs on track, one source close to the organization said.

Gates’ discussions focused on organizations such as Gavi, the Vaccine Alliance, as well as the Global Fund to Fight AIDS, Tuberculosis and Malaria, among others. They are on the shortlist for review by Secretary of State Marco Rubio and Trump. The U.S. gives around $300 million annually to Gavi, and more than $1 billion to the Global Fund.

Several projects under the President’s Emergency Plan for AIDS Relief (PEPFAR) are also on the review shortlist, the source said.

The Global Fund declined to comment for this story, and Gavi said only that it had not had a termination notice for its main U.S. funding contract. The White House did not respond to requests for comment.

USAID terminated more than 5,200 grants and contracts, a State Department spokesperson said, adding that critical program awards remain active.

"USAID continues to support the U.S. coordinated, interagency response to the Ebola outbreak in Uganda; to provide lifesaving HIV care and treatment services; to provide emergency assistance in conflict zones; and to support key American strategic partners," the spokesperson said.

At the National Security Council, Gates also pushed for the U.S. to continue to support the World Health Organization, which Trump moved to exit on day one of his administration, as well as efforts to eradicate polio.

Established in 2000, the Gates Foundation has an annual budget of more than $8 billion. Gates has met regularly with security officials in previous administrations on key areas like malaria or COVID-19. He met with Trump at a dinner in December, before the inauguration, and the White House in early February after the USAID cuts were first announced, according to an NBC report.

https://www.yahoo.com/news/exclusive-gates-warns-white-house-100215388.html

Pfizer to sell remaining stake in Haleon

 

  • Pfizer (NYSE:PFE) is planning to sell 662M shares of Haleon (NYSE:HLN) to divest its remaining stake in the U.K.-based consumer healthcare company, Bloomberg News reported Tuesday, citing Citigroup (C) which serves as a joint global coordinator and bookrunner for the sale.
  • The sale, representing about a 7.3% stake in the Sensodyne toothpaste maker, is expected to start shortly, and the company is planning to conduct an accelerated book-building process to determine the price. 
  • The New York-based pharma giant joined GSK (GSK) in founding Haleon (NYSE:HLN) in 2019. Since Haleon (NYSE:HLN) completed its spinoff from GSK in 2022, its founders have been reducing their ownership stakes.
  • While the British pharmaceutical giant completed its divestment in May, PFE sold about 700M shares of the company in January, reducing its stake from about 15.0% to 7.3%.