PRISM’s Biotech Breakfast
Healthcare Equities Reverse Declines, New Regulatory Wins for GLP-1 Drugs, AstraZeneca Joins Weight-Loss Drug Race
Healthcare equities reversed earlier declines to close around their best levels on Friday. Healthcare was up +0.60% versus the S&P 500 which rose +1.56%. Notable gainers during the day were Joint Corp. ($JYNT) which rose +12.9% on earnings. Vir Biotechnology ($VIR) was up +8.0% and the best performer on XBI, while Hologic ($HOLX) finished the day up +7.3% following Q3 earnings. The day’s session saw declines from Illumina ($ILMN) which fell (8.0%), reaching a 52-week low, Novavax, Inc. which was down (7.0%) and Neurocrine Biosciences ($NBIX) which lost (4.4%) after its clinical trials in focal onset seizures and Major Depressive Disorder failed to meet primary endpoints.
Celldex Therapeutics ($CLDX) was upgraded to equal weight from underweight at Wells Fargo Securities and Genmab ($GMAB) was upgraded to buy from hold at Deutsche Bank. Illumina, Inc ($ILMN) was downgraded to hold from buy at Canaccord Genuity and ProSomnus ($OSA) was downgraded to hold from buy at Craig-Hallum Capital. Cargo Therapeutics ($CRGX) launched the 20th biotech IPO year-to-date, and was the fourth largest IPO raise for the group this year. Cargo’s shares fell (3%) on its debut.
Obesity, which is associated with some of the leading causes of death, including heart disease, stroke and diabetes, affects around 40% of adults in the US, and one billion people worldwide. GLP-1 drugs continue to gain traction as treatments for obesity with the potential for tremendous benefits for public health. Demand for these medicines, the first effective weight-loss treatments, currently far exceeds what manufacturers can produce.
Yesterday, Novo Nordisk ($NVO) announced it would invest more than $6 billion over the next six years to increase manufacturing capacity to meet unprecedented demand for its GLP-1 blockbusters, Ozempic and Wegovy. The company reported a 58% rise in sales for Ozempic, and nearly $3.1 billion in revenue from Wegovy sales in the first nine months of 2023.
This week saw new regulatory wins for GLP-1 drugs as the European CHMP recommended Eli Lilly’s ($LLY) Mounjaro (tirzepatide), a dual-acting gastric inhibitory polypeptide (GIP)/GLP-1 for the expanded indication of the treatment of obesity. This follows the FDA approving tirzepatide for weight loss in the US earlier this week. The drug will be marketed as Zepbound, for chronic weight management.
AstraZeneca ($AZN) also joined the race for a slice of the obesity market this week, with a potential $2 billion deal for an early GLP-1 candidate. The exclusive license agreement, signed with Shanghai-based Eccogene, is for ECC5004, an early-stage investigational oral glucagon-like peptide 1 receptor agonist in development for obesity, type 2 diabetes and other cardiometabolic diseases.
The Trader’s Lens
Biopharmaceutical company $BNOX looks like it’s taking another leg down after gapping up in late September on positive results of a trial for the treatment of PTSD.
Illumina, Inc.
Gene-sequencing company $ILMN is down after slashing financial forecasts for the second straight quarter. The stock has been sliding for a couple of years now and is hitting levels not seen since 2013.
The week’s headlines
NeuroSense Completes Dosing of Last Patient in ALS Trial
NeuroSense Therapeutics (Nasdaq: NRSN) has dosed the last patient in the double-blind segment of its Phase 2b amyotrophic lateral sclerosis (ALS) trial of PrimeC (PARADIGM).
Lucid Diagnostics Launches Next-Generation Esophageal Pre-Cancer Test
Lucid Diagnostics Inc. (Nasdaq: LUCD) a majority-owned subsidiary of PAVmed Inc. (Nasdaq: PAVM) has launched the next generation of its EsoGuard® Esophageal DNA test for the detection of esophageal precancer.
Sientra Shines Following Third Quarter Financial and Operational Results
Surgical aesthetics company, Sientra (Nasdaq: SIEN) saw its share price gain nearly 40% in intraday trading after it announced its financial results for Q3, 2023.
NanoVibronix UroShield Product Receives Full Reimbursement in United Kingdom
NanoVibronix (Nasdaq: NAOV) has announced that its UroShield actuators are eligible for reimbursement on NHS Prescription Services’ Drug Tariff from November 1, 2023.
Biotech Gainers and Decliners
