No­var­tis-backed Cona­tus high­lights a sil­ver lin­ing, but PhI­Ib NASH-re­lat­ed set­back caus­es whiplash in share price

The fairy tale sto­ry at Cona­tus Phar­ma­ceu­ti­cals has tak­en a nasty twist.

A lit­tle more than a year af­ter phar­ma gi­ant No­var­tis stepped in with an up­front pay­ment to bag li­cens­ing rights to its liv­er drug that was as big as the biotech’s mar­ket cap, their first Phase IIb tri­al for liv­er dis­ease failed the pri­ma­ry end­point. And their stock price $CNAT im­me­di­ate­ly tanked, plung­ing 34%.

Steven Men­to

There was vir­tu­al­ly no dif­fer­ence be­tween the re­sponse rate in the over­all pop­u­la­tion tak­ing em­ri­c­as­an com­pared to a place­bo. In­ves­ti­ga­tors, though, did find some en­cour­age­ment in sub­group analy­sis, not­ing some bet­ter num­bers for ad­vanced fi­bro­sis and ear­ly cir­rho­sis. But there were al­so sev­er­al miss­es as well.

That’s clear­ly not what the San Diego-based biotech was look­ing for when they start­ed the POLT-HCV-SVR tri­al about 4 years ago. No­var­tis pro­vid­ed a $50 mil­lion up­front, agreed to pay half of the Phase IIb costs for part of the over­all pro­gram and said it would pro­vide an­oth­er $7 mil­lion if it de­cid­ed to ex­er­cise its op­tion in the deal.

Ac­cord­ing to an SEC fil­ing at the time, No­var­tis al­so said it would pro­vide up to $650 mil­lion in mile­stones for the work, which in­cludes two oth­er Phase IIb tri­als. No­var­tis is look­ing for drugs it can com­bine with an in­ter­nal Far­ne­soid X re­cep­tor (FXR) ag­o­nist in clin­i­cal de­vel­op­ment for NASH. The phar­ma gi­ant is al­so on the hook to ex­e­cute Phase III, if it choos­es to move ahead.

Cona­tus CEO Steven Men­to stayed fo­cused on the pos­i­tive:

We are par­tic­u­lar­ly en­cour­aged by the 95% re­sponse rate in a sub­group of ad­vanced fi­bro­sis and ear­ly cir­rho­sis pa­tients with a fa­vor­able two-year safe­ty pro­file. In ad­di­tion, in pa­tients with the po­ten­tial to con­tin­ue wors­en­ing, those less than F6 at base­line, on­ly 2 of 26 (7.7%) on em­ri­c­as­an com­pared with 5 of 17 (29.4%) on place­bo showed an in­crease in fi­bro­sis score at year 2 – a treat­ment dif­fer­ence of 21.7 per­cent­age points. We al­so plan to eval­u­ate re­spons­es in ad­di­tion­al sub­groups in a va­ri­ety of sec­ondary and ex­plorato­ry end­points to learn as much as pos­si­ble from this da­ta-rich tri­al.

BiTE® Plat­form and the Evo­lu­tion To­ward Off-The-Shelf Im­muno-On­col­o­gy Ap­proach­es

Despite rapid advances in the field of immuno-oncology that have transformed the cancer treatment landscape, many cancer patients are still left behind.1,2 Not every person has access to innovative therapies designed specifically to treat his or her disease. Many currently available immuno-oncology-based approaches and chemotherapies have brought long-term benefits to some patients — but many patients still need other therapeutic options.3

Fangliang Zhang (Imaginechina via AP Images)

The big mon­ey: Poised to make drug R&D his­to­ry, a Chi­na biotech un­veils uni­corn rac­ing am­bi­tions in a bid to raise $350M-plus on Nas­daq

Almost exactly three years after Shanghai-based Legend came out of nowhere to steal the show at ASCO with jaw-dropping data on their BCMA-targeted CAR-T for multiple myeloma, the little player with Big Pharma connections is taking a giant step toward making it big on Wall Street. And this time they want to seal the deal on a global rep after staking out a unicorn valuation in what’s turned out to be a bull market for biotech IPOs — in the middle of a pandemic.

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Gilead re­leas­es an­oth­er round of murky remde­sivir re­sults

A month after the NIH declared the first trial on remdesivir in Covid-19 a success, Gilead is out with new results on their antiviral. But although the study met one of its primary endpoints, the data are likely to only add to a growing debate over how effective the drug actually is.

In a Phase III trial, patients given a 5-day dose of remdesivir were 65% more likely to show “clinical improvement” compared to an arm given standard-of-care. The trial, though, gave little indication for whether the drug had an impact on key endpoints such as survival or time-to-recovery. And in a surprising twist, a 10-day dosing arm of remdesivir didn’t lead to a statistically significant improvement over standard of care.

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Len Schleifer (left) and George Yancopoulos, Regeneron (Vimeo)

Eyes on he­mo­phil­ia prize, Re­gen­eron adds a $100M wa­ger on joint de­vel­op­ment cam­paign with In­tel­lia

When George Yancopoulos first signed up Intellia to be its CRISPR/Cas9 partner on gene editing projects 4 years ago, the upstart smartly ramped up its IPO at the same time. Today, Regeneron $REGN is coming back in, adding $100 million in an upfront fee and equity to significantly boot up a whole roster of new development projects.

And they’re highlighting some clinical hemophilia research plans in the process.

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Iterum's fu­ture looks un­cer­tain, af­ter lead an­tibi­ot­ic fails con­sec­u­tive piv­otal stud­ies

While the market for antibiotics remains in tatters — unlike many of its bankrupt (or at the brink of bankruptcy) peers — Iterum is suffering not because its antibiotic isn’t selling, but because the compound has now failed back-to-back late-stage studies.

The experimental drug, sulopenem, was designed to tackle drug-resistant infections with an outpatient focus (in addition to hospitals), to avert those reimbursement challenges that incentivize hospitals to prescribe cheaper, generic broad-spectrum antibiotics.

Jean-Jacques Bienaimé, BioMarin chairman and CEO

Bio­Marin holds the line on bleeds with 4-year val­rox up­date on he­mo­phil­ia A — but what's this about an­oth­er de­cline in Fac­tor 8 lev­els?

BioMarin has posted some top-line results for their 4-year followup on the most advanced gene therapy for hemophilia A — extending its streak on keeping a handful of patients free of bleeds and off Factor VIII therapy, but likely stirring fresh worries over a continued drop in Factor VIII levels.

We just don’t know how big a drop.

We’ll see more data when the results are presented at the World Federation of Hemophilia in a couple of weeks. But in a statement out Sunday night, BioMarin $BMRN reported that none of the patients required Factor VIII treatment, adding:

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Covid-19 roundup: Did in­sid­ers cash in on pos­i­tive news re­port about Gilead be­fore pub­li­ca­tion?

A series of bullish trades on Gilead options just before the release of a favorable news story is raising questions among regulatory experts, Reuters reported.

On April 16, just hours before STAT published anecdotes from a Chicago hospital that served as one of the clinical sites to test Gilead’s remdesivir in Covid-19 patients, the California-based company’s shares were trading at around $75. Four large blocks of options were purchased for about $1.5 million each, betting that the stock would rise beyond that to as much as $87.5 by mid-August.

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Roche nabs front­line OK for Avastin/Tecen­triq in com­mon liv­er can­cer, best­ing an old Bay­er drug

For the first time in 12 years, the FDA has approved a new frontline treatment for the most common form of liver cancer.

The agency okayed a combination of Roche’s anti-VEGF antibody Avastin and their immunotherapy Tecentriq for patients with unresectable or metastatic hepatocellular carcinoma (HCC). The approval comes two weeks after Roche and their big biotech sub Genentech published Phase III results showing the combo improved both progression-free survival and, crucially, helped patients live longer than the long-running standard-of-care, Bayer’s Nexavar.

As­traZeneca trum­pets the 'mo­men­tous' da­ta they found for Tagris­so in an ad­ju­vant set­ting for NSCLC — but many of the ex­perts aren’t cheer­ing along

AstraZeneca is rolling out the big guns this evening to provide a salute to their ADAURA data on Tagrisso at ASCO.

Cancer R&D chief José Baselga calls the disease-free survival data for their drug in an adjuvant setting of early stage, epidermal growth factor receptor-mutated NSCLC patients following surgery “momentous.” Roy Herbst, the principal investigator out of Yale, calls it “transformative.”

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