Regeneron battles Wall Street uncertainty; Madrigal extends fast launch of MASH drug
Today, a brief rundown of news from Regeneron Pharmaceuticals and Madrigal Pharmaceuticals, as well as updates from UCB, AbbVie and PTC Therapeutics that you may have missed.
Shares of Regeneron Pharmaceuticals fell nearly 10% amid growing uncertainty about the future sales of its flagship Eylea franchise. Regeneron has been looking to a new high-dose version of Eylea to ward off competition from Roche’s Vabysmo and emerging biosimilar threats. But at $392 million, third-quarter sales missed consensus estimates and fell below the trajectory of Vabysmo’s matched-quarter revenues, reflecting “slower-than-expected” adoption, wrote Leerink Partners analyst David Risinger. Still, data readouts expected in the months ahead on drugs for blood clots, lung cancer and obesity could help “refocus [the] story,” wrote RBC Capital Markets’ Brian Abrahams in a separate note. — Ben Fidler
UCB said Thursday there were bright spots in a failed study testing the company’s experimental drug for Alzheimer’s disease. The drug, called bepranemab, binds to a specific region on “tau,” a protein with well-established ties to Alzhiemer’s. While the mid-stage trial missed its main goal, UCB said “key secondary objectives” indicated its drug can slow cognitive decline and the accumulation of tau better than a placebo. After-the-fact analyses also found certain participants who received a high dose of bepranemab experienced 29% slower disease progression. Chief Scientific Officer Alistair Henry said the company is “deeply encouraged” by the results. — Jacob Bell
Sales of Rezdiffra, Madrigal Pharmaceuticals’ recently approved drug for metabolic dysfunction-associated steatohepatitis, or MASH, widely beat Wall Street expectations during the third quarter. Earnings reported by Madrigal Thursday show Rezdiffra sales totaled $62 million, well above the consensus forecast of around $36 million. Madrigal said that, as of Sept. 30, insurance policies were in place for more than 80% of people covered by private payers in the U.S. Shares in Madrigal, which had already impressed in August with its fast launch, climbed by nearly 40% through Friday morning. — Ned Pagliarulo
Abbvie will work with biotech startup EvolveImmune Therapeutics to develop “multispecific” antibody drugs for cancer, the companies said Thursday. The deal hands Abbvie an option to license T cell engagers EvolveImmune designs with certain tweaks to boost their potency. AbbVie is paying the startup $65 million in cash and an equity investment to start the deal, and could add another $1.4 billion in future option fees and milestones. — Ben Fidler
One other biopharmaceutical company bid to acquire Longboard Pharmaceuticals, but withdrew its offer of $60 per share before Lundbeck secured an acquisition agreement at the same price on Oct. 14. Longboard also contacted three other pharmas, but none expressed interest in discussing a buyout. The background of the $2.6 billion deal, disclosed via a securities filing Wednesday, also shows that Lundbeck upped its offer five times, from an initial proposal of $29 per share. — Ned Pagliarulo
The Food and Drug Administration will again evaluate whether to approve PTC Therapeutics’ Translarna for Duchenne muscular dystrophy, the company announced Wednesday. The agency previously rejected PTC’s drug, which has long been available in Europe but may soon be withdrawn there due to questions about its effectiveness. The latest U.S. review is the result of PTC’s resubmission and, as a result of the company originally filing its application over the FDA’s protest, won’t be reviewed on typical agency timelines. PTC believes the “totality of evidence,” including data from a patient registry, proves Translarna’s benefits. But, Leerink Partners analyst Joseph Schwartz wrote, “we’re not getting our hopes up given the FDA’s historically overwhelmingly negative view” of the drug. — Ben Fidler
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