Radius rockets higher as Kelly Martin boasts of a big PhIII success — but the spoils belong to Menarini
Radius Health stuck with some fuzzy top-line Phase III results for its oral SERD therapy elacestrant, but investors saw enough to push a rally that sparked a big surge in its share price.
According to researchers, the drug hit both primary endpoints among ER+/HER2- breast cancer patients: beating standard of care on progression-free survival in the overall population and PFS with tumors harboring estrogen receptor 1 mutations — a key factor in developing resistance. And while some analysts were left wondering about specific data, most of the crowd seemed happy to hear that the drug is now being steered to the FDA.
Radius shares $RDUS rocketed up 44% on the news Wednesday morning, which came on the heels of a reported Phase III success for their drug Tymlos that scored positive on male osteoporosis. It’s already approved for postmenopausal osteoporosis, though the response was much more muted.
The big winner here may well be the Menarini Group, which snagged global commercial rights to elacestrant for only $30 million a little more than a year ago. That deal was struck just a few months after ex-Elan chief Kelly Martin took the helm at Radius.
Menarini is also on the hook for $320 million in milestones and royalties in the low to mid-teens.
“Advanced/metastatic ER+/HER2- BC pre-treated with endocrine therapy remains an area of high unmet medical need. Additional therapeutic options for this patient population are urgently needed,” said Harvard associate professor Aditya Bardia, the principal investigator for the EMERALD trial. “The trial results being statistically significant demonstrate a clinically meaningful improvement of PFS in the elacestrant group versus endocrine standard of care in patients previously treated with endocrine therapies and CDK 4/6 inhibitors.”