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DESMOND on SAVIENT: WHY KRYSTEXXA’S REWARD OUTWEIGHS THE RISK? I am very exicted about this new product, altho...
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Obi.Wan on XOMA (XOMA): WHAT DO WE NEED FROM THIS FIRM? Do you believe XOMA is about to receive another...
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stemcella on CYTORI (CYTX): A STEM CELL HOPE FOR URINARY INCONTINENCE i suspect cytx is a con operation. this is the ...
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stemcella on CYTORI (CYTX): A STEM CELL HOPE FOR URINARY INCONTINENCE nnnbbb
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isellumins on INSMED’S (INSM) DRUG IPLEX™: VALUABLE, OR NOT VALUABLE? Insmed is run as a criminal enterprise by the m...
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CYTOKINETICS: POTENTIAL TREATMENTS OF HEART FAILURE, MUSCLE AND NEUROMUSCULAR DYSFUNCTION.
In the news: Cytokinetics, has initiated phase I clinical trial to investigate the pharmacokinetic profile of CK-2017357. Cytokinetics has also initiated the second part, or "Part B", of a previously initiated, Phase I clinical trial of CK-2017357 in healthy male volunteers.
CK-2017357 is a small molecule drug that offers hope to patients suffering from detrimental and life-threatening muscle wasting and neuromuscular dysfunction. These diseases include amyotrophic lateral sclerosis (ALS), myasthenia gravis, sarcopenia, claudication, cachexia, and shortcomings associated with aging.
The primary objective of the multi-dose phase I clinical trial is to determine the safety and tolerability of CK-2017357 after multiple oral doses to steady state in healthy male volunteers. The secondary objective is to evaluate the pharmacokinetic profile of CK-2017357 after multiple oral doses to steady state.
Cytokinetics has initiated Part B of phase 1 trials while Part A is still ongoing. Despite the fact that Part 1 trial remains blinded, investigators could not miss that all the doses given have been tolerated, including the dose that produced CK-2017357 blood levels associated with increased skeletal muscle function in preclinical models.
Part 1 single-dose trial is meant to assess safety, tolerability, and pharmacokinetic profile in healthy male volunteers and determine its maximum tolerated dose and plasma concentration. The objective of the “Part B” trial of phase I trial is to assess the pharmacodynamic effect of CK-2017357 when administered orally to healthy male volunteers. In this trial, the force-frequency relationship of an externally stimulated nerve-muscle pair and its relationship to CK-2017357 plasma concentration will be determined.
Interested in the trial details Click: http://www.cytokinetics.com/press_releases/release/pr_1257741999.
CYTOKINETICS PROGRAMS
Cytokinetics has two programs; both deal with life-threatening conditions that have yet to find satisfactory treatments. The first program focuses on developing cardiac myosin activators for heart failure. In this program, the drug, omecamtiv mecarbil, has reached phase 2 clinical trials with promising results. The second program, which is the topic of the above news, is focused on the discovery and development of small molecule sarcomere activators that are expected to boost skeletal muscle (voluntary muscle) contractility. CK-2017357 is the first small molecule sarcomere activator to reach clinical trials.
How does CK-2017357 work?
Skeletal muscle contractility is believed to be driven by the sarcomere, which is composed of several key proteins. Myosin, one of the sarcomere’s proteins interacts with a second protein, protein called actin, to convert chemical energy into mechanical force. A set of regulatory proteins, tropomyosin, and three troponin make the actin-myosin interaction dependent on changes in intracellular calcium levels.
CK-2017357 selectively activates the troponin complex, hence increases its sensitivity to calcium, leading to an increase in skeletal muscle force. The results are encouraging, bringing hope for patients suffering from amyotrophic lateral sclerosis (ALS), myasthenia gravis, sarcopenia, claudication, cachexia, and shortcomings associated with aging.
Market Potential:
- ALS: Affects between 20,000 and 30,000 people in the United States. The disease is associated with a 3-year mortality rate of 50%. There are no specific effective treatments.
- Myasthenia gravis: A chronic disease characterized by a defect in the transmission of nerve impulses to skeletal muscles afflicts approximately 60,000 patients in the United States.
- Cachexia, Is characterized by a drastic and unintentional loss of body mass. It is prevalent in 15%-35% of heart failure patients and in approximately 50% of cancer patients.
- Intermittent claudication: Cramping pains in the legs caused by peripheral arterial disease. It impacts between 1million to 3 million people in the United States each year.
- Sarcopenia: This condition characterized by loss of muscle mass, strength, and function impacts the lives of around 25-30% of the U.S. population over the age of 65.
So, the market could be huge. Add to it the heart failure drug market, then we would be talking about billions of dollars in revenues for Cytokinetics when these drugs reach the market.
Cytokinetics discovered and developed its own breakthrough molecules. Its drugs and their targets are unique and might offer hope for patients suffering from devastating and life-threatening diseases. The rationale behind its treatments is scientifically sound and satisfying and the small molecule drugs developed for skeletal and involuntary muscles have not demonstrated any serious side effects.
Cytokinetics’ cardiac myosin program attracted Amgen. At first, Amgen invested a large sum of money as a reservation of priority rights. Then, after the announcement of positive results, Amgen took a closer look at the drug, its rationale and the results and decided to officially partner on the program. Amgen’s enthusiasm added more validation to our enthusiasm, which grew much bigger for Cytokinetics breakthrough molecules, thus, for its stock. We wish this firm all the best.Disclosure: No Positions
ONYX (ONXX): ACQUIRING PROTEOLIX COULD BE THE DEAL OF THE YEAR?
Onyx’ (ONXX) stock decline in the past few months puzzled its shareholders. Nothing that has come in the news in the past year has been bad. On the contrary, a string of promising results was incessantly coming from the clinical trials of the firm’s cancer drug Nexavar on a variety of cancers. Now there are sufficient data to get an approval for other malignancies, including breast cancers. The drug was first approved for kidney cancer and then for liver cancer and, for a long while, there was no evidence that it would be approved for other cancers. Shareholders, though, did not lose hope. They were satisfied with the drug sales’ growth with sales that were closing on the $1 billion revenues. How come then that at the moment the drug proved to be useful for breast cancer the stock faltered.
Investors first believed that the ONXX decline was a typical phenomenon that briefly occurs when publicly traded firms raise money. Onyx had indeed raised $300 million, but the stock decline was not brief and has not ceased. Taking a deeper look at what the critics were propagating, informed investors found out that, yes, the financing was, indeed, a trigger for the stock decline but not for the sell-off, which was caused by efforts spent towards not letting the stock recover. Negative analysts kept downgrading the firm for various reasons, mostly irrelevant and included hypothesizing that Onyx might spend the vast amount of money it raised uselessly, acquiring a worthless firm!
It was strange that the critics projected pessimism against Onyx’ possible acquisition of a biotech firm that they, themselves, kept advocating. Stranger is the fact that, at the time, nobody had yet learned about any acquisition, as it was not announced. The analysts’ previous take on Onyx was that, besides the cancer drug Nexavar, the firm’s pipeline lacks mid- and late-phase trial. Their best suggestion was that the firm has to increase its value by adding more drugs to its pipeline through acquisition, which is exactly what the company did.
More »CYTORI (CYTX): A STEM CELL HOPE FOR URINARY INCONTINENCE
A study was led by Momokazu Gotoh, MD, Ph.D., Professor and Chairman of the Department of Urology and Tokunori Yamamoto, MD, Ph.D., Associate Professor Department of Urology at Nagoya University Graduate School of Medicine demonstrate that stem and regenerative cells from a patient’s own fat tissue used to treat stress urinary incontinence (SUI) demonstrate efficacy in severe cases. The cells in the study were processed using Cytori’s Celution® 800 System during the operative procedure.
The results, reported at the 7th Annual Meeting of the International Federation for Adipose Therapeutics and Science, suggest that the treatment is safe and feasible. The adipose-derived stem and regenerative cells (ADRCs) were delivered via two distinct formulations. First, they were injected directly into the bladder sphincter with the goal of improving muscle contraction. Secondly, ADRCs were combined with the patient’s own fat tissue to create a cell-enriched bulking agent to improve closure upon sphincter contraction. They were five patients whose stress urinary incontinence resulted from radical prostatectomy.
The follow-up examinations were thorough and frequent at two, four, eight, and 12 weeks. They were assessed for continence, intraurethral and leak point pressures (measures of urethral sphincter tone) and quality-of-life. Imaging studies were made.
More »WHY SEQUENOM?
It did not take us long to welcome the arrival of what many have expected from Sequenom and many have doubted. The expected has, indeed, begun to show, and the doubt that should disappear will stay as long as the skeptics of Wall street are ideologists whose ideology is cynicism. Nevertheless Sequenom has, indeed, launched its first laboratory test,SensiGene™ Cystic Fibrosis (CF) Carrier Screening test.
Carrier screening tests rule in or out an increased risk of having a baby with a genetic disorders. It is important to recognize the fact that healthy individuals with no family history of a genetic diseases and have healthy children, may still be carriers of a genetic disorder like cystic fibrosis. Children would suffer from cystic fibrosis if they have two mutations in the gene that causes CF, inheriting one mutation from the mother and the other from the father.
For Sequenom, the commercial launch of this test is an important milestone, as it marks the first test launched by its own lab, the Sequenom Center for Molecular Medicine. Harry Stylli, PhD, Sequenom's president and chief executive officer said, "This screening tool offers an outstanding testing option for patients and their care providers. We are developing and plan to offer a menu of superior women's health related molecular tests, including proprietary, cell free fetal nucleic acid based tests such as fetal sex determination, fetal RHD genotyping, trisomy 21 and others."
So, the firm is confident that it will fulfill its promises, bringing a battery of cell free fetal nucleic acid based tests to the medical practice.
The Market: Approximately 1 in 30 Americans are carriers of a cystic fibrosis gene mutation, making it one of the most common genetic disorders in the United States. According to the American College of Obstetricians and Gynecologists (ACOG) and the American College of Medical Genetics (ACMG), cystic fibrosis carrier screening should be offered to all Caucasian couples who are expecting a baby or are considering pregnancy, and further, the test should be made available to all patients regardless of ethnicity. About 1.1 million cystic fibrosis carrier screening tests are performed each year in the U.S. With an average reimbursement rate of $200-$400 per test; the U.S. market is estimated to be in excess of $300 million per year.
If the tests for cystic fibrosis already exist, why the enthusiasm for Sequenom Test?
SensiGene™ test offers superior detection rates and broader ethnic coverage than the standard ACMG 23 recommended mutations panel. More important is that in the world we live in now, assigning a single ethnicity to an individual has become difficult, if not impossible. Lee P. Shulman MD, Professor in Obstetrics and Gynecology and Chief of the Division of Reproductive Medicine at the Feinberg School of Medicine at Northwestern University explains this fact stating, "As the world's population becomes more of a melting pot in terms of ethnicity and diversity, a more comprehensive test like the SensiGene Cystic Fibrosis Carrier Screening test is essential in the world of genetic testing.”
Indeed, the expanded CF panels can provide increased sensitivity for CF carrier screening for many individuals. It is a recognized fact that 1 in 17 CF carriers may be missed using the standard ACMG 23 CF carrier screening panel.
The test employs Sequenom's proprietary MassARRAY® system, which allows direct and label-free analysis of nucleic acids. This test is available exclusively through the Sequenom Center for Molecular Medicine, a next-generation CLIA (Clinical Laboratory Improvement Amendments, 1988) molecular diagnostic laboratory and a wholly-owned subsidiary of Sequenom, Inc.
Disclosure: Long SQNM
ONYX (ONXX): NEXAVAR IN METASTATIC BREAST CANCER
Nexavar, the oral cancer drug marketed by Onyx (ONXX) and Bayer for kidney and liver cancers has very promising results. Phase 2b clinical trial data demonstrate that the drug has confirmed previous promising results on metastatic breast cancer. When combined with Xeloda, Nexavar prolonged free survival (PFS) for 6.4 months, compared to 4.1 months to Xeloda alone and to 2.9 months compared to a combination of Avastin and Xeloda.
This is good news for Onyx. The improvement in PFS is a large step forward on the road towards improving free survival of patients suffering from metastatic breast cancer. This is the first time an oral treatment demonstrates it significantly improves time to tumor growth.
Wednesday is the day of a more detailed presentation of the Nexavar study. It is expected to include a breakdown of results between first-line and second-line patients. Nevertheless, the results that we already know are encouraging and we do not exclude the possibility that oncologist would begin using the combination off-label, hence increasing Nexavar’s worldwide sales and revenues. It was said that Bayer is looking forward to generate around $3 billion a year from the drug. Imagine what Onyx part would represent and how much further higher its revenues would reach when the drug will be approved for lung cancer too.
Is this good news for Onyx? We believe it is the best of what we could expect.
BIOCRYST (BCRX): WILL COMPLETE PHASE 3 PERAMIVIR FLU DRUG WITH HHS MONEY.
Under Emergency Use Authorization (EUA), BioCryst received a request for proposal (RFP) from the U.S. Department of Health & Human Services (HHS) for a minimum of 1,000 and a maximum of 40,000 courses of peramivir for the treatment of influenza. In the meantime, the HHS has awarded Biocryst a $77.2 million contract modification to complete Phase 3 development of peramivir.
The news today highlights the department of health’s enthusiasm for the drug. It has nothing to do with the drug’s demand, sales, or anything related to the firm’s revenues. Having said that, we believe that those who tried to claim that the revenues from the 40,000 courses of the drug are below expectations and do not justify the current stock price are misleading us. The truth is that the drug is not yet approved and the HHS promised order is not a typical full order, but tied to the RFP’s guidelines. Our expectations on the drug’s sales under these conditions were zero.
On the other hand, the press release highlights the HHS love of the product as it has demonstrated efficacy in saving flu patients from their miserable condition and saving many lives. The HHS, no doubt about it, believes in the drug. Otherwise there would be no explanation for granting BioCryst $102.6 million to develop the drug until phase 3 trial, in addition to the recent $77.2 million to complete the remaining of phase 3 trial. As a matter of fact, the HHS $102.6 million awarded to BioCryst in January 2007, has helped the flu drug advance through Phase 2 and initial part of phase 3 trials. Now, the $77.2 million will complete it.
Peramivir is not another vaccine, but a therapeutic intended to save the lives of flu patients who have become severely sick and hospitalized. Although some drugs for flu, like Tamiflu, Relenza and others do exist on the market, no specific anti-viral drugs have yet been approved for flu.
Disclosure: No Positions
XOMA (XOMA): WHAT DO WE NEED FROM THIS FIRM?
Why Xoma?
Steffen Nock, Acting Chief Executive Officer of Arana said, “Xoma provides a complete suite of validated technologies that enable us to accelerate our antibody development programs toward the clinic. We believe the advantages of these technologies, including XOMA's next-generation antibody libraries, will increase our capacity to cost-effectively develop novel therapeutics."
Prohost Biotech never doubted the high value of Xoma’s scientific and technological capability. We hailed the firm’s early involvement in the bacterial secretion of antibody domains and we were among the first to appreciate the value of its bactericidal cell expression (BCE) technology for the high-level expression it provides. Yes, we were aware all-along of the firm’s advantages. The problem, though, is that Xoma kept providing its treasures to others and barely used them for itself. which might have been caused us enormous losses. .
Our great awareness of Xoma’s excellent technologies and its capabilities of developing targeted therapeutics made us become high hopers, having great expectations for Xoma’s achievements. Betting on this firm’s scientific and technological capability was correct and smart, except for ignoring that betting on whatever one loves about a firm would include an automatic betting on the firm’s management. This was our sin. The firm’s bright science blinded our eyes, preventing them from unveiling the past managements’ incompetence. For over a decade, Xoma’s superior scientific fundamentals and its built-in huge experience have failed to create value for the firm’s loyal shareholders. As a matter of fact, the firm’s value kept shrinking until it almost disappeared.
Xoma’s genius was wasted on efforts spent towards rescuing the firm from its managements’ bad decisions, improper choices and uncontrolled spending. Confident that the firm has all that is required for a biotech firm to generate billions of dollars in revenues, the firm’s loyal shareholders lost their investment before they saw any of Xoma’s proprietary products reach the market. Xoma must have fallen into coma during the past decade. At the end of a decade of struggling for survival, the firm had transformed into a poverty-stricken charitable organization. Drugs developed through Xoma’s technologies, Cimza and Lucentis, are generating billions of dollars in revenues for their owners, while Xoma is getting a few bucks that it calls royalties, which it immediately spends on nothing that is visible in its pipeline.
Our question is: Will the current management change the firm’s direction from extra-spending to what would turn some of its revenues into earning? Will it stop claiming that giving away its technological expertise for pennies is a victory? Will it co-develop its breakthrough proprietary therapeutics with other firms on 50-50 partnership bases? Is this not the only hope for generating billions of dollars in revenues?
Xoma can still strike it big. It has more chances than ever for generating billions of dollars from its monoclonal antibody therapeutics. As a matter of fact a rare opportunity presents now in some of its drugs, precisely Xoma’s multi-targeted investigational therapeutic, XOMA 052. The drug is in two clinical studies for Type 2 diabetes. The molecules target key inflammatory pathways that contribute to the death and impairment of insulin-producing cells. There are no current marketed diabetes drugs aimed at protecting the insulin making cells. The same drug tackles also other inflammatory conditions, including rheumatoid arthritis, gout, systemic juvenile idiopathic arthritis, and cardiovascular disease. Further positive results from XOMA 052 would take the stock price to where it was a few years ago, i.e., over ten times its current stock price.
XOMA 052 is a Human Engineered™ IgG2 antibody. The antibody has an ultra high binding affinity for IL-1β of 300 femtomolar. Based on its combined pharmacokinetic and binding properties, XOMA 052 may provide a convenient dosing of once per one month or longer. If successful and passes the clinical trial tests, XOMA 052 would become the first drug ever to treat diabetes and other inflammatory diseases with once a month injection. Studies with XOMA 052 for rheumatoid arthritis have already been initiated.
Some studies have demonstrated that Amgen’s drug Kineret (Anakinra), an interleukin-1 (IL-1) receptor antagonist, has had positive results on Type 2 diabetes. These studies validate the results of XOMA 052. Anikanra is already marketed for other inflammatory diseases. The difference, however, is that Kineret is administered through daily injections while Xoma 0.52 could be administered once a month.
That said, we will continue riding Xoma’s wave, but sitting on the driver’s seat. We cannot accept our investment to disappear, particularly not as a consequence of management’s inefficiency and lack of stamina. What we need now from the current management is accountability and transparency. We are determined to get both. Among other things, we need to know the fate of Xoma’s product HCD122, a monoclonal antibody that targets CD40, the same target of Rituxan, Genentech’s and Biogen Idec’s best selling lymphoma and anti-inflammatory disease drug. Xoma had licensed this important drug to Chiron, but the drug ended up in Novartis’ lap in April 2006 when this firm acquired Chiron. We want to learn about Novartis’ intended plans and the timetable it has put for various processes that would lead to the drug marketing, if any.
We have not given up on Xoma, because we still believe in its great drug discovery, design and development capabilities. The time has come, though, for the large libraries of molecules to fill Xoma’s pipeline with second to none drugs, instead of filling our ears with bragging. We will not act like the mother who told her son that he is an excellent writer, which led her husband to remark, “Indeed he is, provided he starts to write.”
We will make sure that with the technological wealth in its hand, Xoma’s management will indeed write a happy ending for the company’s tragic story.
Disclosure: No Positions