Biotech Breakfast – Verrica Pharmaceuticals Soars, Healthcare Equities Dip & Cancer Vaccine Advances
Healthcare equities finished mostly lower following an uneventful day on Friday. Healthcare fell by (0.85%) versus the S&P 500 which was down (0.01%). It was a broadly positive week overall, with biotech a clear outlier as the XBI rose +0.28% during the day, and marked higher by +8.07% for the week. Medtech was another outperformer.
Notable gainers on Friday were Verrica Pharmaceuticals ($VRCA) which soared +62.0% following positive clinical trial results for its study of a treatment for molluscum contagiosum, Rhythm Pharmaceuticals ($RYTM) which rose +9.9% and BridgeBio Pharma ($BBIO) which closed up +9.6%, reaching a 52-week high, and gaining +21.0% for the week.The day’s session saw declines from Aadi Bioscience ($AADI) which dropped (56.4%) on trial results in its solid tumor study and being downgraded at HC Wainwright. Agenus ($AGEN) fell by (9.1%) and Surgery Partners ($SRGY) lost (8.3%) but was up +2% overall for the week.
Vaccines Taking Aim at Cancers
Cancer is a leading cause of death worldwide, resulting in nearly 10 million deaths in 2020. Our brightest minds have sought effective treatments for cancer for more than a century, but the silver bullet still eludes us. Chemotherapy and radiotherapy kill healthy cells as readily as cancer cells, cancer can recur after surgery, and precision approaches such as immune checkpoint inhibitors don’t work for all patients and can have fatal side effects.
Vaccines are emerging as an exciting area of research in cancer treatment. Scientists believe it is possible to manipulate the immune system to reject cancer, focusing on both prevention and preventing recurrence following initial therapies, such as surgery. Two effective preventative vaccines are already available: Gardasil 9 prevents human papillomavirus (HPV), a virus that causes cervical cancer, and a hepatitis B virus (HBV) vaccine that guards against hepatitis B, which can lead to liver cancer. Messenger RNA (mRNA) is a powerful tool that is being investigated – with success – by Moderna, Merck, BioNTech ($BNTX), and Roche. If the COVID-19 pandemic had a silver lining, it would be that mRNA vaccines have been shown to be safe and effective and are now fast-tracking in cancer.
In cancer vaccine news this week, Anixa Biosciences ($ANIX) reported positive results from a Phase 1 clinical trial of its breast cancer vaccine for Triple Negative breast cancer (TNBC). Anixa is the exclusive worldwide licensee to the novel breast cancer vaccine technology invented at Cleveland Clinic, the site of the Phase 1 trial. Merck ($MRK) and Moderna ($MRNA) announced that their collaboration to develop an experimental cancer vaccine continues to show promise in treating melanoma, with new data demonstrating that a combination of the MRNA-4157 shot and Keytruda reduces the risk of recurrence or death by 49%.
The global cancer therapeutics market reached $164 billion in 2022 and is expected to be valued at over $393.61 billion by 2032.
PRISM MarketView’s Emerging Biotech Index tracks the progress of micro and small cap companies contributing to healthcare innovation and economic growth.
The Trader’s Lens
$VRCA is up about 50% at the time of posting due to news that its partner, Torii Pharmaceutical, reported positive results from its Phase 3 trial of its treatment for molluscum contagiosum.
$ACAD is surging today after winning in its patent suit over Nuplazid, a drug used in the treatment of Parkinson’s disease
$CCCC is surging again today and continuing its move from yesterday when the company announced that it had entered into an exclusive licensing and collaboration agreement with Merck ($MRK) to help discover and develop degrader-antibody conjugates (“DACs”), which are designed to selectively target and neutralize disease-causing proteins in cancer cells.
The week’s headlines
“Exceptional Result”: NeuroSense Therapeutics Reports New Positive Data from ALS Trial
NeuroSense Therapeutics Ltd. (Nasdaq: NRSN) has reported additional positive efficacy data from its Phase 2b trial evaluating PrimeC, the company’s lead drug candidate for amyotrophic lateral sclerosis (ALS). The company’s share price rose nearly 30% in trading on Thursday.
Anixa Advances Breast Cancer Vaccine
Anixa Biosciences, Inc. (Nasdaq: ANIX) has reported positive results from a Phase 1 clinical trial of its breast cancer vaccine for Triple Negative breast cancer (TNBC). Anixa is the exclusive worldwide licensee to the novel breast cancer vaccine technology invented at Cleveland Clinic, the site of the Phase 1 trial.
Icosavax to be Acquired by AstraZeneca in Deal Valued at $1.1 Billion
Icosavax, Inc. (Nasdaq: ICVX) will be acquired by AstraZeneca in a deal with a total equity value of up to $1.1 billion. Today, Icosavax also reported positive topline interim results from its Phase 2 study of IVX-A12, a combination virus like particle (VLP) vaccine candidate targeting both respiratory syncytial virus (RSV) and human metapneumovirus (hMPV).
C4 Therapeutics Achieves Positive Data in Multiple Myeloma Trial
C4 Therapeutics, Inc. (Nasdaq: CCCC) has reported positive clinical data from its ongoing Phase 1 dose escalation portion of its Phase 1/2 clinical trial of CFT7455, a MonoDAC™ degrader of IKZF1/3, for the potential treatment of multiple myeloma (MM) and non-Hodgkin’s lymphomas (NHL).
FDA Grants PMA Supplement Approval for ReShape Lifesciences Lap Band; Shares Surge 100%
ReShape Lifesciences (Nasdaq: RSLS) has been granted FDA approval of a PMA supplement for the company’s next generation, enhanced Lap-Band® 2.0 FLEX. The company’s share price surged 100% in trading on Wednesday morning.
