BioInvestor

Isis Pharmaceuticals' Obesity Buster an Enormous Finding

- There's nothing unique in how big pharma invests or partners with emerging companies. The processes you described have been in place in many industries for years.

- The benefits of Mipomersen aren't the issue. The issue is the delivery mechanism. Oral drugs have a better market uptake than do injectables, at least in North America and parts of Europe.

- I don't argue that ISIS has an interesting and potentially lucrative platform. Antisense is a technology that should, in principle, work well. Delivery to the point of pain is key. ISIS also has a very strong IP position in the area, IMHO one of its best acquisition strategies.


On Jun 30 11:31 AM southshorein vestor wrote:

> Re: Bioinvestor. Actually, big pharma invests in most promising new
> platforms in a rather unique way - in a press release, with a transfer
> of money, rights to regional distribution, and in exchange for a
> percentage of the company they're investing in. So they do share
> in the profits of the successful ventures, and they also lose their
> investment in those platforms that are not viable. Even the big pharma's
> were taken during dot.com bubble.
>
> As you correctly said, upstart biotechs must partner away early products
> in order to build a revenue stream that will power growth of their
> future pipeline. Most fail. Also, AMGN and DNA are now struggling
> as they've picked most of the low hanging fruit.
>
> A non-oral form of Mipomersen will discourage its wide spread use,
> but if the formulation can be produced in an extended release form
> or packaged in a pen-style injection similar to AMLN's Byetta, then
> this might change.
> --------
> Specifically regarding Mipomersen, a reversal of plaque would be
> a significant benefit and would provide ISIS with an expanded use.
> Prevention of cardiac disease surgeries would be a significant savings
> to the HMO system (not to mention the impact on patients and families).
>
> --------
> Generally regarding ISIS, they have a potential platform that applies
> a new drug type to old and new disease targets. The old targets are
> the most promising since these are already validated, have probably
> come off patent, and are abundant. Plus, ISIS will not have to spend
> much money or time on early-phase discovery or legal. Targeting PTP-1b
> with small molecules for instance was tried to death by every pharma
> and is the poster child for each new drug platform. The platform
> for ISIS is the bull case for investing here. Mipomersen is the proof-of-principle
> product.
>
> Toxic side effects, drug-delivery issues, competition, and production
> costs are the bear points.
>
> Long-term, ISIS is a speculative buy - to me. IMO.
>
>
>
>
>

Isis Pharmaceuticals' Obesity Buster an Enormous Finding

southshoreinvestor, actually major pharma got involved very early with both AMGN and DNA. Partnerships with J&J and Eli Lilly, respectively, helped move the initial programs along. Of course, J&J missed out on the big market for Amgen's first drug.

A non-oral form of a drug will be an impediment to its widespread acceptance. In the obesity market, not too far from ISIS in Southern California, one finds Arena Pharmaceuticals. Arena (ARNA) has an oral anti-obesity drug that's currently in phase III. To date, its safety profile looks good; however, until the Phase III results are published, there is risk associated with investing in this company.

Isis Pharmaceuticals Panic Overdone

Isis certainly has a formidable patent position. The company has a large effort into securing intellectual property in this area. The big issue is in ensuring an effective delivery system--something which, at one point, monoclonal antibody products had to face. Now, monoclonal antibody products are moving rapidly through the development/approval process. It's frankly only a matter of time until antisense products reach the market. Isis is in a very strong position in this technology and should be a long-term winner.