With hit-and-miss da­ta, Al­lakos goes the pub­lic of­fer­ing route in $150M ask

Cal­i­for­nia-based biotech Al­lakos, which works on al­ler­gies and in­flam­ma­tion-re­lat­ed dis­eases, is mak­ing hay while the sun shines.

Ten days af­ter an­nounc­ing luke­warm re­sults of its lead drug can­di­date, the com­pa­ny an­nounced it was seek­ing $150 mil­lion via an un­der­writ­ten of­fer­ing of shares of its com­mon stock $AL­LK.

The com­pa­ny’s 24-week da­ta from its Phase III tri­al EoDyssey was in­ves­ti­gat­ing its lead drug can­di­date lirente­limab in pa­tients with con­firmed eosinophilic duo­deni­tis — a chron­ic in­flam­ma­to­ry dis­ease char­ac­ter­ized by in­flam­ma­tion in the stom­ach and part of the small in­tes­tine.

While the tri­al met its his­to­log­ic co-pri­ma­ry end­point, it did not meet the oth­er, which was pa­tient-re­port­ed symp­to­matic im­prove­ment.

Pre­vi­ous stud­ies from De­cem­ber 2021, two sep­a­rate Phase II/III stud­ies across mul­ti­ple types of eosinophilic gas­troin­testi­nal dis­ease, test­ing lirente­limab had led to sim­i­lar find­ings. They showed sig­nif­i­cant re­duc­tion in eosinophil lev­els in the blood, but no re­lief in pa­tient symp­toms.

Lirente­limab, al­so known as AK002, is an an­ti­body that tar­gets Siglec-8, an in­hibito­ry re­cep­tor part of a fam­i­ly called sial­ic acid-bind­ing im­munoglob­u­lin-type lectins, aka Siglecs.

While Al­lakos da­ta read­outs haven’t been stel­lar, the com­pa­ny is still go­ing ahead with the big cash raise. It is fol­low­ing the foot­steps of oth­er com­pa­nies that have cashed in days af­ter drop­ping da­ta. Re­cent­ly, Akero is­sued a pub­lic of­fer­ing less than 12 hours of un­veil­ing promis­ing da­ta in NASH, where a study met both its pri­ma­ry end­point and mul­ti­ple sec­ondary end­points in more than 100 pa­tients.

An­oth­er ex­am­ple is Re­lay Ther­a­peu­tics, which sought $300 mil­lion af­ter spot­light­ing its bile duct can­cer ther­a­py da­ta at ES­MO this month.

Al­lakos, which was found­ed in 2012, has al­so de­cid­ed to move for­ward with test­ing lirente­limab in chron­ic spon­ta­neous ur­ticaria — a form of hives — and atopic der­mati­tis, an in­di­ca­tion that has been the tar­get of many com­pa­nies and has been dom­i­nat­ed by Sanofi/Re­gen­eron’s Dupix­ent.

Has the mo­ment fi­nal­ly ar­rived for val­ue-based health­care?

RBC Capital Markets’ Healthcare Technology Analyst, Sean Dodge, spotlights a new breed of tech-enabled providers who are rapidly transforming the way clinicians deliver healthcare, and explores the key question: can this accelerating revolution overturn the US healthcare system?

Key points

Tech-enabled healthcare providers are poised to help the US transition to value, not volume, as the basis for reward.
The move to value-based care has policy momentum, but is risky and complex for clinicians.
Outsourced tech specialists are emerging to provide the required expertise, while healthcare and tech are also converging through M&A.
Value-based care remains in its early stages, but the transition is accelerating and represents a huge addressable market.

No­vo Nordisk re­mains un­der UK scruti­ny as MHRA con­ducts its own re­view in 'in­cred­i­bly rare' case

The UK’s Medicines and Healthcare products Regulatory Agency is now reviewing Novo Nordisk’s marketing violation that resulted in its loss of UK trade group membership last week. Novo Nordisk was suspended on Thursday from the Association of the British Pharmaceutical Industry (ABPI) for two years after an investigation by its regulatory arm found the pharma broke its conduct rules.

MHRA said on Tuesday that its review of the Prescription Medicines Code of Practice Authority (PMCPA) investigation is standard practice. An MHRA spokesperson emphasized in an email to Endpoints News that the situation with Novo Nordisk is “incredibly rare” while also noting ABPI took “swift and proportionate action.”

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Andy Plump, Takeda R&D chief (Jeff Rumans for Endpoints News)

What kind of PhI­Ib da­ta is worth $4B cash? Take­da’s Andy Plump has some thoughts on that

A few months back, when Takeda caused jaws to drop with its eye-watering $4 billion cash upfront for a mid-stage TYK2 drug from Nimbus, it had already taken a deep dive on the solid Phase IIb data Nimbus had assembled from its dose-ranging study in psoriasis.

Now, it’s rolling that data out, eager to demonstrate what inspired the global biopharma to go long in a neighboring, but new, disease arena for the pipeline. And the most avid students of the numbers will likely be at Bristol Myers Squibb, who will have a multi-year head start on pioneering the TYK2 space with Sotyktu (deucravacitinib) as Takeda makes its lunge for best-in-class status.

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FDA warns Proc­ter & Gam­ble over NyQuil la­bel's in­gre­di­ent list­ings

The FDA on Tuesday released a warning letter sent earlier this month to the Mason, OH-based site of Procter & Gamble Manufactura, raising questions about the list of ingredients on the label and in the electronic filing.

The warning says that for P&G’s over-the-counter Vicks Nyquil Severe Hot Remedy Cold and Flu Plus Congestion, there’s a “mismatched” list of active ingredients between the labeling and the electronic listing file. The listing file for the active ingredients did not match the active ingredients in the electronic file.

FTC says patent bat­tle over Parkin­son's drug could have 'sig­nif­i­cant im­pli­ca­tion­s' for pa­tients

The Federal Trade Commission has gotten involved in a patent feud over Supernus’ Parkinson’s drug Apokyn, a case the agency said may have ‘‘significant implications” for patients who rely on the drug.

Sage Chemical won the first generic approval for its Apokyn formulation (also known as apomorphine hydrochloride injection) back in 2022. The non-ergoline dopamine agonist is approved to treat Parkinson’s symptoms during “off episodes,” such as difficulty moving, tremors and intense cramping. However, regulators specified that the approval pertained to the generic drug cartridges only, not the injector pen required for administration.

FDA in­di­cates will­ing­ness to ap­prove Bio­gen ALS drug de­spite failed PhI­II study

Ahead of Wednesday’s advisory committee hearing to discuss Biogen’s ALS drug tofersen, the FDA appeared open to approving the drug, newly released briefing documents show.

Citing the need for flexibility in a devastating disease like ALS, regulators signaled a willingness to consider greenlighting tofersen based on its effect on a certain protein associated with ALS despite a failed pivotal trial. The documents come after regulatory flexibility was part of the same rationale the agency expressed when approving an ALS drug last September from Amylyx Pharmaceuticals, indicating the FDA’s openness to approving new treatments for the disease.

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Growth hor­mone from No­vo Nordisk is in short­age over man­u­fac­tur­ing de­lays

Novo Nordisk’s growth hormone Norditropin is in shortage because of manufacturing delays, according to an FDA site that tracks drug shortages as well as the American Society of Health-System Pharmacists’ shortages list.

The FDA has shortages of the drug listed for its 5, 10, 15 and 30 mg doses, while the pharmacists’ group, also known as ASHP, reported shortages of the same doses, except for the 15 mg version.

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PhRMA calls for more di­verse in­fra­struc­ture up­grades to US emer­gency tri­als frame­work

The White House’s Office of Science and Technology Policy (OSTP) last year sought to find ways to better coordinate large-scale clinical trials in the US — as the UK lead by example during the pandemic — especially for these emergency clinical trials.

The lobbying group PhRMA Tuesday called for more clinical trial diversity in underserved areas, including by making participation less of a burden, and expanding eligibility criteria when appropriate.

Mar­ket­ingRx roundup: What could a US Tik­Tok ban mean for phar­ma? Pfiz­er, Lil­ly lead phar­ma March Mad­ness ad­ver­tis­ers

Just as pharma marketers finally make moves into TikTok, the threat of a US ban on the social media channel is now looming. Already banned on federal employee phones by an initial Congressional act, more bills and maybe bans are on the way. With rare bipartisan agreement, lawmakers have introduced legislation that would give the US president the power to ban TikTok (although not mentioned by name) and other foreign-owned technology platforms that represent a security threat to the US.

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