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JUNE 5, 2006 Anadys May Be A "Two-Or Three-Bagger"
Mara Der Hovanesian
INSIDE WALL STREET
Anadys May Be A "Two-Or Three-Bagger"
By Mara Der Hovanesian
Anadys Pharmaceuticals (ANDS ) (ANDS) is not a stock for people who like to sleep easy. It soared 43% in the past year, to a peak of 16.60 in March. Since then, it has slumped to 9.46 -- and is down 8.4% so far this year. Still, that's pretty respectable in a terrible year for biotechs. What's more, some analysts think Anadys' drubbing has been overdone, and they're betting on a rebound. By summer's end, they expect the San Diego company to report favorable results from early trials of an oral drug for chronic hepatitis C virus and perhaps other diseases such as hepatitis B. Anadys has a global partnership with Novartis (NVS ) for the Swiss giant to develop, manufacture, and sell the drug, which could make waves in the $3 billion hepatitis C market. "This is a very good company with very good science," says Eric Schmidt of Cowen. "If those data are as good as we hope, the stock might be a two- or three-bagger." Getting there is likely to be a nail-biter. Schmidt expects more losses like those in the first quarter, when the company bled $5.8 million (vs. $8.4 million for first quarter of 2005). Soham Pandya of Susquehanna Financial Group rates the stock a "buy." He argues that "earnings are not material" because Anadys will "incur operating losses as it funds R&D." It has a strong pipeline of new drugs, with about 45 issued patents and 92 pending worldwide.
http://www.businessweek.com/magazine/content/06_23/b3987121.htm?campaign_id=search
DNDN at 4.18, 210k volume, up 0.14.
imho it is under continued accumulation, even during our market correction. Now the price is starting to slowly run up. A birds nest on the ground imo based on 2H06 news events.
Garden variety 5-7% market correction? TBD
S&P 500 is flirting with 200 dma, and it isn't unreasonable to go below that for a week or two.
http://finance.yahoo.com/q/ta?s=%5EGSPC&t=2y&l=on&z=m&q=b&p=m200,e200&a=&...
I heard on Bloomberg the other days that this correction was orderly, and that selling was focused on the highest flyers (energy, commodities) as well as other sectors near 52-week highs. In other words, profit taking as some inflation uncertainty rises.
My beaten down biotechs with good cash positions seem to be holding well (CEGE, DNDN). REGN looks like it may dip as low as 10.5 if the corrections deepens a bit more (2x cash).
I actually have some energy/rig stocks on my watch list now (CHK, EP and GW).
>My best guess: VEGF-Trap for AMD could be on the market in 2011 if there is no hitch.<
I just did a bit more reading from REGN's web site and found this on their VEGF-Trap AMD anticipated trial schedules.
Based on the preliminary phase 1 results in wet AMD, the Company has initiated a 150 patient, 12 week, phase 2 trial of the VEGF Trap in wet AMD. The trial is designed to evaluate treatment with multiple doses of the VEGF Trap-Eye using different doses and different dosing regimens, as well as safety and efficacy. The Company plans to conduct an initial evaluation of study results after all patients have completed 12 weeks of treatment, which is expected to be prior to the end of 2006. Subject to a review of the initial phase 2 study results, Regeneron plans to initiate a phase 3 trial of the VEGF Trap in wet AMD in early 2007.
Assuming their P III takes up to a year to complete, and then another year to prepare results for FDA filing, would you agree that they could have an AMD product on the market by 2009-2010 timeline? This assumes of course that they don't have to do additional P III studies like DNA is going through right now, right?
http://www.regeneron.com/investor/press_detail.asp?v_c_id=234
Thanks for your opinion
Dew, re: REGN
In terms of time, how long would it take for REGN to complete their necessary Phase II and III trials and go through an FDA review on their VEGF Trap in Age-Related Macular Degeneration?
Any thoughts on the other drug trials that REGN has underway, versus the stocks current valuation?
I bought into the stock last year in the $5's, sold 1/2 at around $17, and am starting to re-enter a larger position again with the recent sell off. I need to pay attention to DNA's Lucentis Phase IIIb PIER data results symposium on June 2 to see if it may impact REGN's share price further.
Thanks
Lots of volume and price increase on AGEN yesterday and now today. Anyone know any news? Up 25% from yesterday's 52 week low.
http://finance.yahoo.com/q/bc?s=AGEN&t=5d&l=on&z=m&q=l&c=
Thanks, that is great news for young women and hopefully they will get final approval by the FDA. I see it getting news coverage right now on TV at NBC nightly news, and the conservative politicals that are concerned about teenage sex. Approval might help add visibility to other cancer vaccine drugs which actually attack the cancers, versus as a preventive treatment.
I find these inflationary pressures as an excuse to cause a market sell off. These inflationary numbers are modest and I'm not surprised by them. It doesn't take much intelligence to understand that the rising commodity prices the past 6-12 months would eventually make it into consumer prices.
IMO the Feds interest rate moves will soon show an affect on growth and inflation.
We've been overdue for a nice 5-7% correction in the market, and I think we're well on our way. There may be a few more days of this before the selloff ends imo. Should be a good week to accumulate stocks on your "watch list".
Indeed! Just grabbed some REGN at 12.28.
Cancer vaccines' bumpy road
Signals (16 May 2006)
By Jennifer Van Brunt
What used to be a relatively esoteric line of research – immunotherapy for cancer -- has become mainstream. In fact, there are so many companies and institutions involved in various aspects of cancer vaccine research that the Albert B. Sabin Vaccine Institute has organized the Cancer Vaccine Consortium to help accelerate the development and licensure of these immunotherapies. Some biotech firms have been investigating cancer vaccines for decades now, and the lessons they've learned over time inform the burgeoning field as it moves forward.
Researchers have been hard at work on developing means to harness the body's own immune system to fight cancer for decades now. Yet, it's widely believed that not one single cancer vaccine has made it to market.
Strictly speaking, that may be true, since there is no approved vaccine aimed directly at cancerous cells. Yet, if you consider the fact that infection with hepatitis B virus (HBV) can lead to severe liver damage, including liver cancer, then, indeed, a cancer vaccine has been on the market for a long time already. In fact, there are handful of HBV vaccines: The first two FDA-approved recombinant vaccines, which incorporate the virus' surface antigen S, are Merck & Co. Inc.'s Recombivax HB (approved in July 1986) and GlaxoSmithKline plc's Engerix-B (approved in September 1989). On a global basis, a number of other HBV vaccines exist, including ones developed by Savient Pharmaceuticals Inc. and Sanofi Pasteur.
Absolute protection
Meanwhile, an as-yet-experimental vaccine directed at another virus – human papillomavirus (HPV) – is set to make history as the first vaccine approved for treating cervical cancer, the second most common cause of death in women worldwide. And what a vaccine. In large clinical trials, Merck's Gardasil (quadravalent human papillomavirus types 6, 11, 16 and 18) has been shown to prevent 100 percent of cervical pre- and non-invasive cancers associated with HPV types 16 and 18. As it turns out, these two HPV types account for about 70 percent of cervical cancer cases. The large Phase III study followed originally uninfected women who had received the vaccine for two years following enrollment, and compared them with a placebo group. No cases of cancer were found in the vaccine group; 21 cases were found in the placebo.
Selected cancer vaccines in late-stage development Company Vaccine name Type/description Cancer target Developmental status
Antigenics Oncophage Patient-specific vaccine; heat shock protein gp96 and associated peptides isolated from patient's tumor then injected back under skin to elicit cellular immune response Renal cell carcinoma Phase III (trial halted on insufficient data 3/06)
Biomira Theratope Synthetic mimic of sialyl Tn attached to carrier protein KLH Metastatic breast cancer Missed 2 primary endpoints in Phase III trial in women with metastatic breast cancer (6/03): statistically significant benefit in women on hormonal therapy following chemotherapy, but Biomira will not pursue further without partner
CancerVax Canvaxin Non-patient-specific tumor cells (from three irradiated cell lines) Stage III and Stage IV melanoma (post-surgical adjuvant treatment) Product was not able to demonstrate a significant survival benefit over placebo in Phase III trials (4/05; 10/05; 3/06)
Cell Genesys GVAX Non-patient-specific vaccine consisting of two prostate cancer cell lines, genetically engineered to secrete GM-CSF Metastatic, hormone refractory prostate cancer Two Phase III trials underway (GVAX +/- Taxotere and prednisone)
Dendreon Provenge (sipuleucel-T) Patient-specific dendritic cell-based vaccine that targets prostatic acid phosphatase Metastatic, androgen-independent prostate cancer in asymptomatic men Two Phase III trials completed; rolling BLA submission expected to begin 1H:06; Fast Track status granted 11/05
It's almost unheard of for a vaccine (or any drug, even) to be 100 percent effective, but that's what the data from Merck's vast trials indicate. (The overall Phase III program involves over 25,000 people in 33 countries.) But that's not all: Gardasil also contains viral coat proteins from HPV types 6 and 11, which together account for about 90 percent of genital wart cases. According to results presented at the ICAAC meeting in December 2005, Gardasil also proved 100 percent effective in preventing external genital lesions in women. The vaccine has actually been tried in younger individuals, too, including boys and girls as young as 10.
Merck submitted its BLA to the FDA in December 2005, and it's scheduled for review sometime in early June 2006. If anyone thinks it's going to be turned down, they're not talking. Au contraire: Analysts are predicting that Gardasil could become a blockbuster, and the stark statistics back that up. Cervical cancer kills 290,000 women worldwide every year. In the U.S., about 10,000 new cases were diagnosed last year, and 3,700 deaths resulted. Moreover, it's thought that about 20 million men and women in the U.S. are infected with HPV, and about 1 million cases of genital warts occur annually.
The only caveat: Since this vaccine will most probably be approved for use in preventing genital warts and the like, as well, it brings up moral issues for parents as to whether to inoculate pre-adolescent girls and boys for a sexually transmitted virus. (For background reading on the development of Gardasil, see the Signals article, "The Burden Of STDs.")
More good news
Merck may be the first to market with its cervical cancer vaccine, but GSK isn't far behind. The British company has developed its own version of the vaccine, called Cervarix, which differs from Merck's in that it targets HPV types 16 and 18 only. Thus, Cervarix is cancer-specific, and does not target genital warts at all.
In clinical trials, this vaccine, like Merck's, was able to demonstrate 100 percent protection from infection by both HPV types as well as protection from associated precancerous lesions. As well, the vaccine's effects are long-lasting: In a follow-up study published in The Lancet, researchers found that Cervarix was 100 percent effective over 4.5 years against precancerous lesions associated with HPV types 16 and 18. As well, antibodies to HPV types 16 and 18 were found in over 98 percent of the women in this study for up to 4.5 years, indicating a sustained response to the vaccine. This demonstration of Cervarix' long-term protection gives it a potential competitive advantage over Gardasil, where the long-term data aren't yet available.
GSK submitted a marketing application on Cervarix to the European Agency for the Evaluation of Medicinal Products in March 2006 and expects to submit a BLA to the FDA by the end of this year. It's certainly lagging Merck's vaccine through the regulatory maze, but will Cervarix be able to grab market share based on its capacity for long-term protection?
That there are now two candidate vaccines to prevent cervical cancer is extremely exciting news for women everywhere – that each seems to be 100 percent effective in preventing the disease is nothing short of miraculous.
However, these successes have not carried over to any of the vaccines in development to treat (rather than prevent) cancer. As we shall see, the path for these vaccine candidates has been anything but smooth.
Shocker
In fact, it appears that devising an effective cancer vaccine is every bit as tough as developing any other therapy – if not more so. For, in most cases, scientists are creating products intended to stimulate the immune system to attack a resident tumor. That's a tricky business in and of itself, not to mention the fact that, in many patients, the immune system is already weakened by the presence of the disease.
Over the decades, there have been many attempts to create effective cancer vaccines – and many failures. But we're finally at the point where more than a handful of vaccine candidates have progressed through early- and mid-stage clinical trials and now stand poised to score in pivotal trials. (A select group of late-stage candidates are included in the tables in this article.)
Some of them will disappoint even now. And, as Antigenics Inc. learned earlier this year, surprises can come from the least expected places. In fact, in this case, it's not clear what the underlying data actually said.
Antigenics' cancer vaccines (Oncophage and AG-858) are based on heat shock protein technology and are designed to reprogram the immune system to target cancer cells. In particular, it's thought that heat shock proteins (a.k.a. stress proteins) play a role in triggering an immune response by presenting antigens on the surface of diseased cells, which essentially "tag" those cells for destruction. To make a vaccine, Antigenics isolates a heat shock protein (gp96 in the case of Oncophage) and its associated peptides from an individual patient's tumor. When the heat shock protein-peptide complexes are injected back into the patient's skin, they stimulate a cellular immune response that is supposedly powerful enough to kill the cancer cells from which the complexes were derived.
Selected cancer vaccines in late-stage development Company Vaccine name Type/description Cancer target Developmental status
Favrille FavId Patient-specific; recombinant idiotype conjugated to KLH, then combined with GM-CSF Follicular B-cell non-Hodgkin's lymphoma (in treatment-naïve patients and in those who have received Rituxan therapy) Phase III (enrollment completed 1/06); Fast Track status granted 1/06
Genitope MyVax Patient-specific; recombinant idiotype protein conjugated to KLH; GM-CSF added as adjuvant Follicular non-Hodgkin's lymphoma (following chemotherapy) Phase III (enrollment completed; Data Safety Monitoring Board recommended continuation of trial 7/05)
GlaxoSmithKline Cervarix Human papillomavirus types 16 and 18 vaccine, formulated with adjuvant AS04 Cervical cancer MAA submitted 3/06; BLA expected before YE:06
Merck &Co. Gardasil Quadrivalent human papillomavirus types 6, 11, 16 and 18 recombinant vaccine Cervical cancer BLA submitted (12/05); BLA accepted for filing; FDA grants fast track status (2/06)
Therion Biologics PANVAC-VF Two vectors (fowlpox and vaccinia) plus GM-CSF Metastatic pancreatic cancer (in patients in whom chemotherapy is ineffective) Phase III (enrollment completed 2/06)
Oncophage, which has been tested in various cancers, has been tested in Phase III clinical trials for renal cell carcinoma and metastatic melanoma. The results, although they lean in the right direction, are not overwhelmingly positive. In preliminary results from the melanoma trial, for instance, the company reported that median survival improved by more than 50 percent in patients treated with Oncophage as compared to those who received the physician's choice of treatment, but the difference was not statistically significant. Antigenics is now conducting a final analysis of these results.
Preliminary results from the kidney cancer trial, unfortunately, were hard to interpret. As reported in late March, the study did not meet its primary endpoints, but that was because the number of events (defined as recurrence of cancer following surgery or death prior to recurrence) was insufficient for analysis. An independent panel determined that the number of events that occurred was actually quite a bit lower than the number of events reported by the investigators. Apparently some of the patients should have been disqualified from the analysis because surgery had not eliminated all traces of disease, a requirement for enrollment in the trial. The analysis did trend in favor of Oncophage for recurrence-free survival but against it for overall survival – a mixed message that hopefully will become clear once the company finishes a detailed analysis of the results.
Meanwhile, Antigenics has stopped all its late-stage clinical programs, shifted its focus to preclinical and Phase I studies, and restructured to reduce its burn rate. And, we still don't know whether Oncophage works or not.
Try, try again
Sometimes, it takes an advanced clinical trial in a large patient population to identify exactly which of those patients will actually benefit from an experimental therapy. It's an expensive and time-consuming way to go about it, but picking out a subset of patients might actually help the sponsoring company to win regulatory approval for its product the first time around. Or not.
CancerVax Corp., for instance, seemed to have a potential winner with Canvaxin, which it was testing in patients with advanced-stage melanoma. Unfortunately, the product, which is a non-patient-specific vaccine, failed to provide a survival benefit first in patients with Stage IV melanoma and then in patients with less-severe Stage III melanoma.
And Biomira Inc.'s vaccine candidate, Theratope, did not meet either of its endpoints – time to disease progression and overall survival – in a Phase III trial in women with metastatic breast cancer. However, one subset of patients – women taking hormones following chemotherapy – appeared to derive some survival benefit. The company confirmed this finding, which it determined was statistically significant, but decided not to proceed further without a partner.
Has any company developing a cancer vaccine had an easy time of it?
First to market?
If everything goes smoothly from here on, Dendreon Corp. could be the first company to market a therapeutic cancer vaccine. The company's prostate cancer vaccine Provenge, which targets the prostate cancer antigen prostatic acid phosphatase (PAP, found in 95 percent of prostate cancers), is a patient-specific dendritic cell-based immunotherapy that is designed to stimulate a T-cell response. The patient's own dendritic (antigen-presenting) cells are isolated, incubated with the PAP antigen, then administered back to the patient.
The FDA awarded Provenge fast-track status for use in treating asymptomatic men with metastatic, hormone-independent prostate cancer. In Phase III studies, the vaccine did not provide a statistically significant benefit in time to disease progression in the overall intent-to-treat population, but a benefit was seen in the subgroup of patients with Gleason scores of seven and less, i.e., those whose cancers are intermediate- to low-risk. A trial in this subset is still ongoing. However, analyses of several Phase III trials demonstrated that Provenge provided a statistically significant survival benefit in the overall patient population of men with advanced prostate cancer – and that finding will form the basis of the BLA that Dendreon intends to submit this year.
Manufacturing twist
Not every company chooses survival as a primary endpoint, though. Favrille Inc., for instance, has chosen time to disease progression in its pivotal trial. The company has completed patient enrollment in a Phase III clinical trial of its cancer vaccine FavId. This product, a patient-specific immunotherapy, is being tested in patients with follicular B-cell non-Hodgkin's lymphoma (NHL), subsequent to therapy with Rituxan.
This particular vaccine consists of a recombinant protein made from a patient's tumor-specific genes (in this case, antibody genes), linked to the carrier protein KLH and injected with GM-CSF, a general immune stimulator. Interestingly, it's produced in insect cells rather than bacteria or mammalian cells,
According to Daniel Gold, Favrille's founder and CSO, producing patient-specific vaccines this way was a technological hurdle in the past, but the company feels its production method is rapid, reliable and amenable to automation. "We use a recombinant approach to make enough product," he said. "Insect cells are very efficient in making recombinant proteins." There's another advantage, too: Insect cells add different sugar groups to recombinant proteins than mammalian cells do. For a therapeutic protein, this isn't desirable, since the product will be recognized as foreign, but "for a vaccine it's a big advantage," Gold explained, because dendritic cells will readily take it up and process it.
As noted, all the patients in Favrille's Phase III trial received Rituxan prior to vaccine treatment. Of patients diagnosed with NHL, "100 percent will have Rituxan at some point," he said. Thus, it just makes sense to start them off this way. However, "Nobody is cured by Rituxan alone in follicular NHL. There's an extended benefit with the vaccine."
Although the trial is fully enrolled, it will be some time before the results are known. Data for the secondary endpoint, overall response to the combined therapy, will be available in the late summer or early fall, Gold said. "We know about 50 percent of patients will go into some form of remission after Rituxan, We picked response as an endpoint because in the Phase II trial we saw that about 30 percent of the patients had an improvement in response following vaccine treatment."
Off the shelf
While quite a few firms have elected to create personalized vaccines, Cell Genesys Inc. has opted to make off-the-shelf vaccines that can be used by all patients. But it wasn't always that way, for the company started with individualized cancer vaccines. It used to modify a patient's own tumor cells ex vivo with the gene for GM-CSF, lethally irradiating the cells and then injecting them back into the patient. But no more.
The firm's now using an immunotherapy which consists of irradiated whole tumor cells (from two cell lines) together with a human antibody (from Medarex Inc. and Bristol-Myers Squibb Co.) that stimulates the immune system to treat patients with hormone refractory metastatic prostate cancer. The two Phase III trials are still enrolling patients The trials are designed to show that treatment with GVAX plus the antibody provides a survival benefit.
According to Stephen Sherwin, chairman and CEO, "we initially tested both patient-specific and non-patient specific vaccines in parallel. Then last year we decided to focus only on cell-line-based vaccines." And the prostate cancer vaccine candidate was the first non-patient-specific program that the company focused on. "We did about five different Phase II trials in a total of 200 patients," Sherwin said. And two of those, in men with advanced prostate cancer that is hormone refractory and metastatic, "provide support for the Phase IIIs," he added. The hope in the Phase III trials is to show that the GVAX vaccine "can improve on Taxotere's [survival] benefit."
With help from my friends
There's another company that's been doing clinical trials on cancer vaccines about as long as Cell Genesys – Therion Biologics Corp. of Cambridge, MA. Surprisingly, this firm has been able to protect its private status from 1991, and apparently has no aims of going public. Still, even with what many say would be limited resources, the firm has been able to conduct an incredible number of clinical trials with its cancer vaccines. That's because it's had the solid support of the National Cancer Institute (NCI), which has been very instrumental conducting these trials. Over 13 years, the company has conducted more than 30 clinical trials with about 1,000 patients, mainly through its relationship with the NCI.
Therion has now completed enrollment of patents in a Phase III trial in metastatic pancreatic cancer. The patients have already failed treatment with gemcitabine, so this is a second-line therapy. The company uses a prime-boost regimen (PANVAC-VF), which means that the initial vaccinia--expressing shot, which targets carcinoembryonic antigen (CEA) and mucin-1 (found on over 90 percent of pancreatic tumor cells) -- was followed by a fowlpox dose. The vaccine also incorporates a triad of co-stimulatory molecules (B7.1, ICAM-1 and LFA-3) which are supposed to sustain a targeted immune response against the tumor cells. As well, the firm uses GM-CSF as a general immune system stimulator. The results, based on early-stage trials, indicate that men with pancreatic cancer may derive long-term benefits from these vaccinations which, very importantly, means living longer.
According to Thomas Schuetz, Therion's chief medical officer, "PANVAC-VF is the 6th or 7th generation of cancer vaccines based on CEA. One of the things we learned, and learned more than once, is that a heterologous prime boost regimen works the best… It gives the best immune responses and generates T-cell immunity."
Lessons learned
Since some companies have been trying to create cancer vaccines for decades already, researchers have learned some valuable lessons – but they also realize that they've got a ways to go. "The major thing we're still learning is how to effectively stimulate the immune system against itself," Favrille's Gold said.
Another major point is to treat patients earlier in their disease, if at all possible. For instance, follicular B-cell non-Hodgkin's lymphoma is a slow-growing disease, Gold explained. "It takes many months to mount an immune response, but we have time in this disease." That's in contrast to pancreatic or prostate cancer, for instance, which are much more aggressive and leave relatively little time for the immune system to respond to a vaccine. "We should be using vaccines when a patient's immune system is optimal, as a first-line therapy," Gold said.
Most obviously, perhaps, is the fact that just about every vaccine maker has opted to add GM-CSF to the mix. The first company to hit on this approach to stimulating the immune system was Cell Genesys, of course. Over time, "people began to understand what GM-CSF does in the body," Sherwin explained. "It's one of the most potent stimulators of dendritic cells." And, since dendritic cells are just the ones you want one your team if you're trying to stimulate the immune system, this approach is a natural.
"Today, the question is why you would not use GM-CSF," added Therion's Schuetz.
"The whole concept of stimulating the immune system has been around for a long time," Sherwin said, but "there have been more failures than successes." However, over the last decade or so, "we understand more about the immune response and we've got more insight into what targets are better than others for immune therapy," he added.
"The cancer vaccine field can no longer hide behind the generation of immune responses," said Therion's Schuetz. "We now have to show that the vaccines do more than that." Like prolong survival, perhaps.
To make any comments on this article, or to ask a question of the author, please contact the publisher. If you would like to submit an article, please contact the editors.
The opinions expressed in the articles published in this section do not necessarily reflect those of Pharmalicensing or Bridgehead International. No actions including proposals to or agreements with other companies should be taken by any reader without obtaining specific business or legal advice. Neither the publisher nor the authors accept any liability for any actions or activities undertaken by any reader or other third party as a consequence of these articles or for any errors or omissions therein.
http://pharmalicensing.com/features/disp/1147445635_4464a183e1ff9
I'm buying more CEGE on weakness in share price the past month.
Now at 6.02
Merck HPV vaccine seems effective, safe-FDA staff
Wed May 17, 2006 10:06 AM ET
WASHINGTON, May 17 (Reuters) - Merck & Co. Inc.'s (MRK.N: Quote, Profile, Research) experimental vaccine to prevent infection with HPV, the virus that causes cervical cancer, appears to be effective and studies did not raise major safety concerns, U.S. regulatory staff said in documents released on Wednesday.
Food and Drug Administration staff said they would ask an advisory panel that meets on Thursday to discuss the safety and effectiveness of the vaccine, Gardasil, as well as findings that showed a higher rate of cervical lesions among a subgroup of women who were infected with certain types of human papilloma virus, or HPV, a group of viruses that also cause genital and skin warts, when they got the vaccine.
http://us.f327.mail.yahoo.com/ym/ShowLetter?box=Sent&MsgId=5105_42546519_112037_619_1437897_0_35...
Dew, I said starting to break out to the upside
Volume popped. Block buys happening. MMs looking to acquire shares to fill orders.
http://finance.yahoo.com/q/bc?s=DNDN&t=1d
It is to be seen whether this will continue. Notice Friday's trade and you might see the volume and price action too.
I believe that the stock is now under more significant accumulation than it has had in the past month. We'll see if the bottom has been put in or not. Eventually the selling will dry up and the balance will be to the long side imo
DNDN starting to breakout to the upside. Volume just popped and price went over $4.03. Appears the institutions or analysts are starting to get very interested.
Summary of JPM Securities DNDN conf. call.
One Negative: Apparently there was an open line for JPM clients but near the end of the call no one asked any questions. But then again, most of the major Q's on my list were already asked.
Doctor's Evan Roy Burger, Clinical Professor & Medical Oncology/Hemotology at SUNY, and principal investigator. Clinical Investigator for some of the Provenge trials.
Dr. David Pensen, Clinical prof., urologist, U. of Southern California, and principal investigator of IMPACT III trial.
Burger: Involved in both 9901 and 9902a trials.
Pensen: Urologic oncology, prostate and bladder cancer. Involved in large # of prostate clinical trials including Provenge.
Major Points (that we already know):
Provenge has very mild, if any, side affects.
Dr. Burger feels that Provenge's current trial results compared to Taxotere's filing is as good if not better considering the mild side-affects. In other words, he believe FDA will approve it based on 9901 and 9902a results.
Burger and Pensen are also both very excited about the potential of DNDN for earlier adjunctive use (related to P-11 trial) when the cancer is earlier stage. Provenge may have a more powerful application at this stage and possibly even a survival cure (once these long term studies are carried out).
Both doctors feel the mild side affects of Provenge makes it a much more significant benefit for treatment versus agents such as Taxotere, with severe side affects. The bottom line for them is quality of life, and benefits of the additional months of life that patients can live under Provenge treatment.
Burger was very articulate and well steeped in the primary issues that prostate patients face and care about.
Pensen: Quality of life and outcome is important to the FDA on new drugs/treatments. He believes that P-11 results over time may provide enough evidence for off label use for earlier Prostate patients.
Burger stated a number of times how significant the Provenge median survival data was for Prostate patients. An impressive finding was the fact that even crossover patients were seeing a positive benefit.
Pensen: Seeing just a few months survival is HUGE for advanced prostate patients. 4 months is very impressive in his opinion.
Burger is very keen on the possiblity of combining Provenge with other agents (taxotere, other biologics) and eventually making a very significant dent in treating Prostate disease.
RE: Cox Multivariet analysis
Both were very favorable with the multivariable analysis that DNDN used and the robust results. (I don't know their stats backgrounds, but this was their opinion).
Burger believes 9901 results verified 9902a.
Question on analyses holding up to FDA.
Burger, believes 9901 speak for themselves, and combined the 200 patients seems reasonable.
Pensen, believes the statistical significance of the combined trials with only 200 patients only points out that the results were robust.
Pensen says the DNDN package looks more promising that Taxotere! This isn't a bit of a stretch in his opinion. If you look at the 2 drugs the FDA has approved in the past few years, DNDN's results look like Taxotere.
Burger agrees. And safety is such that "this is an easy drug".
There is still a bit more but that gives you a flavor of the discourse.
Bottom line for me is that this reaffirms my confidence that Provenge will make it to the market more so in 2007 than later in 2008 after IMPACT.
I haven't covered all the points made by these doctors on Provenge; it is worth listening to if you can take the time and are interested in investing in DNDN.
JPM Securities conf. call on Dendreon is very enlightening as they interview doctors who were involved in patients being treated by Provenge. Call is only available for another day -- so check in soon fyi.
Can be phone accessed until 5/13:
1 888 203 1112
passcode 3088467
http://finance.messages.yahoo.com/bbs?action=m&board=1600905258&tid=dndn&sid=1600905258&...
Cancer Vaccine Mitchell Gold, Dendreon Corp. CEO
(go to first Cancer Vaccine link to video under Technology Archive)
http://www.businessweek.com/mediacenter/video/technology/4cd35db327da3638eb76f44e386cfddf4f195234.ht...
Link also at Dendreon company web site.
http://investor.dendreon.com/medialist.cfm
From briefing.com
JMP Securities positive on DNDN following conference call with two leading investigators in the treatment of prostate cancer (PC). The key takeaways from discussion were: 1) the physicians have high optimism for an FDA approval based on Provenge's clinical package, 2) the survival benefit demonstrated by Provenge is clinically meaningful, and 3) the physicians expect a high rate of adoption of Provenge by early stage patients due to its ease of administration and highly favorable safety/efficacy profile. Reits Outperform and $12 tgt....
http://finance.messages.yahoo.com/bbs?.mm=FN&action=m&board=1600905258&tid=dndn&sid=...
Anyone with an interest in this product - be it financial, clinical or both - you owe it to yourself to put down the key board, pick up the phone and dial (888) 203-1112 -> passcode 3088467
http://finance.messages.yahoo.com/bbs?.mm=FN&action=m&board=1600905258&tid=dndn&sid=...
Premarket bid 4.07 ask 4.14 on 35,800 shares
I liked the 3.77 price yesterday.
On ZONA from yahoo MB, link at bottom.
5/3/2006 4:00:07 PM Biotech Stock Research comments on the price action of ZONA 10.50 -2.20
The newsletter notes the action in the shares over the last two days saying there really isn't a good reason for the drop. BSR does mention several rumors including a potential financing and the delay of data. After speaking with the company, BSR says talk of a financing is not true. With regard to a delay in data, the newletter notes ZONA said on Monday data would be seen in Q4, inline with their estimate though potentially later than what the Street had anticipated. With regard to the liquidation of the Biotechnology Value Fund (which held 560K shares) BSR says the fund had sold their position prior to the drop in the stock price though the thought of liquidation persists in the market and may be the cause of some of the panic selling. Nothing fundamentally is seen as having changed with the company.
http://finance.messages.yahoo.com/bbs?.mm=FN&action=m&board=7077406&tid=zona&sid=707...
No I didn't ask him about financing, but he did say it may take a few more months to get all the patients enrolled into their trials. -- not sure which ones.
I am also suspicious about the price run up as an opportunity to raise funds too. Some fund (one of the institutions?) started to dump yesterday, and continued throughout today. Maybe they sensed that a financing could happen.
I may cut my losses if this keeps up tomorrow.
fwiw, I just spoke to Joe, ZONA CEO, and he said there was no material news to report other than what came out yesterday. If there was ZONA would have reported it. He had checked in with some institutions and they don't have any clues either.
One could speculate that hedge funds ran the price up (on thinly traded stock) and then shorted it yesterday at the new highs.
ZONA continues it move back up to new 52-wk highs today now on heavier volume. Under strong accumulation, with block buys up to 50k in size yesterday.
http://finance.yahoo.com/q/bc?s=ZONA&t=5d
Thanks io_io and D Miller for pointing this one out.
io io,
Yes, very convincing and detailed presentation, and I really like the depth and relavance of their BOD and Science Advisory Board. Looks like a very streamlined and cost effect approach for getting Proellex and Androxal a high probability for approval by FDA.
I still think the pricing between 11-12 is very attractive for a position. Sure beats DNDN at the moment, and the technicals are also attractive too!
Sorry, io io, did you mean their Dec. webcast? I went to the Feb 2006 which was just slides.
http://www.zonagen.com/html/presentations.htm
I looked at their Feb powerpoint. Do you have a link to their conf call or is there a number? I didn't see one immediately available at web site.
thank you
Red Cross
David, any updates on ZONA's fundamentals?
Last weeks move appears to have been driven by some institutions getting word from the company on confidence about their current drug trials per this Punk Ziegel upgrade of their target (below).
Do you have a target price on ZONA over the next year?
Thanks!
09:01 ZONA Zonagen tgt raised to $25 from $14 at Punk Ziegel (12.42 )
Punk Ziegel raises their tgt to $25 from $14 saying several recent developments diminish risks inherent to Zonagen's clinical programs that they had incorporated into their valuation of Zonagen and increase their confidence in the safety and efficacy of Proellex and Androxal as well as their respective market sizes. The firm says most importantly, following recent discussions with thought-leaders, their concerns about the potential for "endometrial hyperplasia" to be observed in patients receiving selective progesterone receptor modulators like Asoprisnil or Proellex and the associated risk of uterine cancer have largely been mitigated.
Thanks Dew. Looks like it makes sense to some insulin-dependent diabetics that don't like to take shots. I give myself lunchtime "Humalog" shots right through my shirt or pants after getting a pinch of my skin. Occassionally you get the small internal bleeding/bruise from the shots that slice small capillaries. In general, it hasn't been a barrier for me, but I'm probably an atypical diabetic with my more aggressive approach to management and exercise.
I don't think I would use the inhalent product as I don't want to lose my lung capacity. I'm going to try to qualify for another Boston Marathon this fall.
I am interested in this upcoming realtime blood sugar monitoring system that may come out this summer. I don't mind the test kits and strips, but this new system would simplify monitoring for me during the day and while exercising.
From Sundays Washington Post: 4/23/06
New Devices May Free Diabetics From Constant Monitoring
By Justin Gillis
Washington Post Staff Writer
Sunday, April 23, 2006; Page A01
When Casey Burkhalter, 12, was diagnosed with diabetes 2 1/2 years ago, her parents started waking up repeatedly at night to test her blood sugar, typical of the exhausting tasks many of the nation's 21 million diabetics go through to extend their lives.
But no more. For four months the Jacksonville, Fla., girl has been wearing an experimental gadget that provides a continuous reading of her blood sugar and wakes the family if it falls dangerously low. The Burkhalters can sleep now, confident that their youngest child will be alive when the sun comes up. "My parents -- it's just been a cinderblock off their backs, not having to get up at night," Casey said.
A new Medtronic device can pump insulin into the body as well as monitor glucose levels. In this rendering, the light beam represents transmitted data. (Medtronic Diabetes)
Device Offers Relief to Diabetics
Casey Burkhalter, 12, is participating in a research study that is testing a continuous glucose monitoring device for diabetics. Although the device is not perfect yet, it promises diabetics a new measure of freedom and is expected to be widely available in the United States by late this summer.
The technique she's helping test is called continuous glucose monitoring, and it's a goal researchers have chased for nearly 50 years. Now, they say, they can finally see the finish line. Sophisticated monitoring devices that promise diabetics a new measure of freedom are just coming to market and are expected to be widely available in the United States by late this summer.
The monitors aren't perfect yet -- they're not as accurate as blood tests, and they're slow to discern the rapid changes in blood sugar that can accompany activities such as exercise. At least for now, patients who wear them are urged to draw blood periodically for comparison. But researchers hope that within a year or two, the devices will allow diabetics to go for long stretches, possibly days, without using the hated finger lances that are the bane of their existence.
People who have used the monitors say that, despite the limitations, they work without much discomfort. More importantly, initial research suggests the devices could improve the control of blood sugar, a task at which diabetics do poorly on average. That would offer a new way to cut the nation's $100-billion-a-year bill from diabetes complications and reduce the suffering -- heart disease, stroke, amputations, blindness, impotence, kidney failure -- associated with the disease.
"I want to tell the world about this," said Leslie Burkhalter, Casey's mother and a jewelry saleswoman in Jacksonville. "It's going to add years to people's lives. All these things going on right now -- amputations, heart disease -- it's all going to be stopped."
Few doctors are ready to go that far yet, but they are paying attention. "The idea that there are devices that are marketable is a big breakthrough," said William V. Tamborlane, a diabetes researcher at Yale University.
The devices from different manufacturers resemble one another. A patch worn on the abdomen carries a tiny wire that pokes through the skin to measure glucose in cellular fluid. The patch hurts a bit going on but is comfortable afterward, patients say. The patch is worn for several days, wirelessly transmitting information to a receiver the size of a mobile phone, before it is replaced with a new one.
The Juvenile Diabetes Research Foundation, a principal advocacy group for people with the most serious form of diabetes, has gone into overdrive in recent months as its officers concluded that the new devices could represent a big improvement in care.
"I think this signals a new era where we can take diabetes by the horns and really start to control it aggressively," said Aaron J. Kowalski, the group's director of strategic research. "Diabetics have been waiting a long, long time for this."
With money raised from bake sales and diabetes marches across the country, the foundation is launching a series of independent studies designed to test manufacturer claims about the new devices and provide information on their worth. Among the big questions are how much they can cut rates of hospitalization, car accidents caused by drivers with low blood sugar and the many other problems attributable to diabetes.
The group is also pushing to mate the glucose sensors with insulin pumps, which have been on the market for years, to create automated systems that might be able to control diabetes for days with minimal intervention. That technique has been tested on a small scale recently at Yale University, and the creation of a commercial system was recently designated a priority by the Food and Drug Administration.
Page 2 of 2 < Back
New Devices May Free Diabetics From Constant Monitoring
In fact, one manufacturer has already combined a glucose monitor and a pump into a single product that won approval from the FDA on April 13 and is going on sale now. Patients won't be able to activate the monitor portion until this summer, and the device isn't fully automatic yet -- it will require a patient to consult a glucose readout and make decisions about insulin use.
But the manufacturer, Medtronic Inc., is working on software to automate much of the decision-making. The resulting device could amount to an external, artificial pancreas that basically controls blood sugar on its own for days, with the exception that a patient would have to inform it of upcoming meals and exercise. "We're fairly close," said Alan O. Marcus, director of medical affairs for Medtronic's diabetes unit.
A new Medtronic device can pump insulin into the body as well as monitor glucose levels. In this rendering, the light beam represents transmitted data. (Medtronic Diabetes)
Photos
Device Offers Relief to Diabetics
Casey Burkhalter, 12, is participating in a research study that is testing a continuous glucose monitoring device for diabetics. Although the device is not perfect yet, it promises diabetics a new measure of freedom and is expected to be widely available in the United States by late this summer.
The body burns glucose, a simple sugar, the way a car burns gasoline. But the level in the blood must be tightly controlled to prevent short-term coma or long-term health damage. In a healthy body, the pancreas releases a hormone, insulin, to instruct tissues to absorb sugar from the blood. But this fundamental life process is broken in diabetics: Their bodies either don't make insulin or resist its effects.
Diabetes is one of the nation's most pervasive ailments, afflicting 7 percent of the population and fully 10 percent of adults. One form of the disease is linked to weight, and the problem is growing as Americans get fatter.
Pills help some people, but many need injected insulin. Until now, the state of the art in controlling diabetes has been to prick the fingers repeatedly throughout the day, drawing blood into a test strip and placing it in a glucose sensor to calculate insulin doses and guide eating.
Researchers have been trying to develop continuous glucose monitors since the early 1960s, and the field is littered with false starts and over-hyped gadgets that failed, most recently a watchlike device that caused burns and rashes. But now, doctors say, companies are finally making monitors that work.
The first of the new devices, from Medtronic, won FDA approval last year, but the company has rolled it out slowly, selling it in only seven cities to date. Medtronic is working out kinks and, like other manufacturers, studying how to educate patients in complex new procedures.
A device from DexCom Inc. of San Diego won FDA approval late last month, and one from Abbott Laboratories of North Chicago, Ill., is on the FDA's desk for approval. Overall, three or four continuous monitors are expected to be available nationwide by late this summer.
The new monitors don't entirely eliminate the need for finger-sticks, at least not yet.
Each time the sensor patch is changed, every three to five days, the glucose monitor must be calibrated using blood tests. And for the moment, the FDA and manufacturers are urging patients to draw blood to confirm a gadget reading before adjusting their blood sugar. If people follow that advice, the main advantage of the gadgets will be to alert them when to test.
But already, it's clear patients are becoming more dependent on the devices than the official instructions recommend. After finding it accurate most of the time and figuring out when it's likely to be less accurate -- during hard exercise, for example -- they start relying on the gadget with few finger-sticks.
"I trust it almost completely," Casey Burkhalter said.
The manufacturers are conducting studies to show their products can replace finger-sticks most of the time, a set of claims the diabetes foundation plans to check with its own studies.
A looming question is whether insurance companies will pay for the gadgets, expected to run from $500 to $2,000, and for the $35-and-up sensor patches that must be changed every few days. Historically, insurers have resisted new diabetes technology until studies prove it can cut costs or reduce medical complications, and those aren't finished.
Matt Vogel, a San Francisco diabetic and triathlete, ordered a DexCom monitor two days after the FDA approved the device. He has been comparing it to blood tests and keeping an Internet journal. The biggest problem so far is a time lag in detecting low sugar after exercise. But the device has awakened him at night when his sugar fell dangerously low, and overall, he rates it highly -- "about 90 percent."
A big issue for diabetics, he said, will be adjusting overnight from too little glucose information to a surfeit of it.
"This isn't going to be like a cure or any sort of silver-bullet solution," he said. "It's going to take quite a bit more thinking and quite a bit more problem-solving in order to really take advantage of it."
http://www.washingtonpost.com/wp-dyn/content/article/2006/04/22/AR2006042201354.html?sub=AR
Io_io, what price did you get in at on ZONA? I noticed that the float is very thin, and probably why the institutions buying it the past week took it from 9 to 13 bucks.
They only have $16 mil cash on had. Do you know what their burn rate is and if they have any partnerships to help pay for their trials.
Looks interesting as a speculative play, but I sure wish I reacted faster when you mentioned it near $10.
Thanks
Thanks Dew. I see that NVS has been an ADR on the NYSE for around 9 years, and has moved up more modestly over that period of time. Was it listed elsewhere on the US exchanges before NYSE? In other words, what kind of multiple were you able to get on NVS from the early stages? Thanks and good luck.
http://finance.yahoo.com/q/bc?s=NVS&t=my
Pharmaceuticals--Profitless prosperity
Apr 20th 2006 | CHICAGO
From The Economist print edition
The biotechnology industry needs to grow up
EVERY industry has its big conferences, but biotechnology must host one of the largest. Some 18,000 scientists, businessmen, financiers and hangers-on descended upon Chicago recently for the annual Bio conference. The gathering boasted plenty of posh parties, high-flying political visitors and boozy nights out at blues bars. To judge by this expense-account fiesta, biotech certainly seems to enjoy a lot of easy money just now.
By some measures the industry is indeed booming. Its American stockmarket value is up tenfold over the past decade, to about $500 billion. Burrill and Company, an industry investment bank, estimates that $350 billion has been invested in biotech, nearly half of that in the past five years. Global revenues have risen from $23 billion in 2000 to more than $50 billion last year.
And what of profits? Best not to mention those. Thirty years after the biotechnology revolution began, the industry has yet to turn an aggregate profit (see chart). Take away the huge profits of a few success stories such as Genentech and Amgen (two Californian firms which together make up a third of the American industry's stockmarket value) and the picture darkens further. David Beier of Amgen estimates that the industry as a whole has lost $100 billion since its creation in the 1970s.
Gary Pisano, a professor at Harvard Business School, argues that biotech needs a radically different business model. He thinks its problems arise because “this is the first time that science is the actual business.” Traditional industries, such as aeronautics or pharmaceuticals, are in business to make products and science merely serves that end. By contrast, most biotech firms are start-ups that have no products and little clue about how to convert their wizardry into things they can sell.
Few would deny that biotechnology has the potential to produce plenty of breakthroughs. Decoding the human genome has helped unlock some of the mysteries of the human body that biotechnologists are striving to turn into products. Optimists speak of drugs targeted to genetic subpopulations, and perhaps even personalised medicine. Firms such as Monsanto, Dow and DuPont are looking to biotech for better catalysts and enzymes, and working with food companies to produce healthier oils and tastier foods.
The trouble is that, after the bursting of a “biotech bubble” on the stockmarket a few years ago, investors are now understandably more discerning. Today's way of financing biotechnology, chiefly through the venture financing of start-up firms, looks unsustainable. On one plausible estimate, such early-stage investors are “holding the bag on 500 to 600 biotech firms they can't unload via public offering” on the stockmarkets. Frederick Frank, a vice-chairman of Lehman Brothers is convinced that there will be a slow but sure shakeout in the industry in the coming years. Up to half of today's 1,500 or so biotech firms (fewer than 400 of which are public) will disappear, aided by mergers.
But if biotech companies are so far from breakthrough products, why will anybody buy them? The answer is that there is an industry in bigger trouble than biotechnology: conventional pharmaceuticals. Big drugs firms are hugely profitable today, but they fear for the future. Their product pipelines are often weak, tens of billions of dollars' worth of drugs will lose patent protection in the next few years, and generics are already eating away at margins.
So the big drugs firms are looking for the next big blockbuster drug under every possible rock—and the most promising rock is biotech. A new report by Ernst & Young, a consultancy, says that 2005 saw a big upsurge in mergers involving biotech firms, with Europe alone seeing 66 deals. Just this week, Novartis won final approval for its $5.4 billion takeover of Chiron, a biotech firm known for its cancer drugs and its blood-testing expertise. Novartis also runs its own start-up fund that invests in biotech firms. Daniel Vasella, the drug giant's chief executive officer, wants to keep his “hand on the technology edge” by keeping a close eye on, and acquiring, biotech companies. He reckons only a portfolio approach makes sense, since “there are 10,000 failures for each success—but when you win, you win big.”
Biotech firms sometimes sneer at big pharma as slow, bureaucratic and even stupid: “They're just barely smart enough to recognise genius,” sniffs one biotech man. But such posturing looks self-indulgent. The future may lie in a convergence of these industries with famously clashing cultures. John LaMattina, head of research and development for Pfizer, the world's largest drugs firm, insists that there is no big difference between biotech and pharma: “Molecules are molecules—I just don't buy this cultural argument.”
The convergence of big pharma and biotech also makes sense to Harvard's Mr Pisano, who sees a fundamental problem with the old financing model for biotech. Venture funds like to see quick returns, usually within five years, but the science involved often takes 15 to 20 years to come to fruition—if at all. He argues that biotech firms, which often pride themselves on their small size and freewheeling culture, need to grow up: “Size is key to integration of science, to learning and to manage risk.”
In the end, despite its paucity of profits, the biotechnology industry offers too much promise to be starved of funding. Burrill, the investment bank, estimates that it will attract some $35 billion in fresh investment in 2006. About $10 billion will come from joining up with big drugs firms and other integrated firms in alliances. The rest, reckons the bank, will come from the public equity markets.
Big Pharma plainly needs biotechnology, so those alliances make sense. But why would biotech be able to earn so much money on the stockmarket given its pitiful returns? Shreefal Mehta of Rensselaer Polytechnic Institute, an American engineering school, observes that there are always punters willing to gamble on very risky stocks in the hope of hitting the jackpot. The secret to biotech's future finances, he sums up, lies in “need and greed”. And perhaps, one distant day, in profits too.
http://www.economist.com/business/displaystory.cfm?story_id=6838715
Dew, is IDIX a 12 month or longer "hold" for you? What is your target price?
I picked up some shares below $11 yesterday based on your alert and the beaten down price (value) of the shares.
Thanks.
PS: Running the Boston Marathon last Monday was a thrill. The people along the course were the greatest.
So he's already lost out on his home state of Texas, eh?
Ooops.
"Quiz answer: Bill Gates is a funny guess, but the answer is…"
Actually Bill Gates doesn't sound as funny of a guess to me. He is the world's premier developer of operating system software (which now needs many firewalls to protect) and is also a large donor to health organization dealing with issues related to HIV and other diseases.
<I'm guessing this puts another question mark on the "Pfizer will buy YMI" theory.>
So DNDN may still be in the running as a possibility for a Pfizer partnership or acquisition this year? Seems like a reasonable hypothesis from David M's earlier article.
<Plus that DSCO seems to have the absolute very worst management in all of biotech - their drug can perform, but they can not.>
We'll see, DNDN also appears to be in the running for that award. :(
Discovery Labs Receives Second Approvable Letter From FDA for Surfaxin for RDS
Wednesday April 5, 7:00 am ET
WARRINGTON, Pa., April 5, 2006 (PRIMEZONE) -- Discovery Laboratories, Inc. (NasdaqNM:DSCO - News) today announced that it has received a second Approvable Letter from the U.S. Food and Drug Administration (FDA) for Discovery's lead product candidate, Surfaxin(r) (lucinactant) for the prevention of Respiratory Distress Syndrome (RDS) in premature infants. Surfaxin is a precision-engineered, peptide-containing, synthetic surfactant that is designed to closely mimic the function of natural human lung surfactant and represents a potential alternative to animal-derived surfactants. Discovery will hold a conference call today at 8:45 AM EDT. The call in number is 866-332-5218.
ADVERTISEMENT
The Approvable Letter is an official notification from the FDA and contains conditions that must be satisfied by Discovery prior to obtaining final U.S. marketing approval. Specifically, the FDA is requesting certain information primarily focused on the Chemistry, Manufacturing and Controls (CMC) section of the NDA. The information predominately involves the further tightening of active ingredient and drug product specifications and related controls. Consistent with previous review, the FDA does not have any clinical or statistical comments. Discovery is in the process of arranging a meeting with the FDA regarding conditions for final approval. The Company anticipates that this meeting will clarify timelines with respect to its response to the FDA.
This is the second Approvable Letter received by the Company from the FDA since the Company's NDA for Surfaxin was filed in April 2004. Our previously submitted responses to the first Approvable Letter were accepted by the FDA as a complete response in October 2005.
Robert J. Capetola, Ph.D., President and Chief Executive Officer of Discovery, commented, ``Our top priority is to satisfy the FDA's requests as soon as possible, so that we can obtain final approval for this important life-saving therapy and make it available to the neonatal community. In light of today's news, we are analyzing all aspects of our business with an intention to conserve cash while remaining focused on developing our NICU franchise of Surfaxin and Aerosurf(tm).''
RDS is a life-threatening and costly breathing disorder that strikes tens of thousands of premature infants in the United States each year, with a global at-risk population in excess of 500,000 infants. Approximately 75,000 infants are treated with surfactants in the United States annually. Current surfactant treatment options are limited to animal-derived surfactants harvested from bovine (cow) and porcine (pig) sources.
Data from Discovery's pivotal, multinational SELECT study demonstrates that Surfaxin was significantly more effective in the prevention of RDS and improved survival and other outcomes versus comparator surfactants. The SELECT and STAR (a supportive Phase 3 study) trials, as well as a pooled Phase 3 analysis, have been presented at several international medical meetings and the results from the two studies were published in Pediatrics.
Discovery will hold a conference call today at 8:45 AM EDT to further discuss in greater detail the foregoing. The call in number is 866-332-5218. The international call in number is 706-679-3237. This audio webcast will be available to shareholders and interested parties through a live broadcast on the Internet at http://audioevent.mshow.com/295458/ and http://www.discoverylabs.com. It is recommended that participants log onto one of these sites at least 15 minutes prior to the call. The Internet broadcast will be available for up to 30 days after the call at both website addresses. The replay number to hear the conference call is 800-642-1687 or 706-645-9291. The passcode is 7560777.
About Discovery Labs
Discovery Laboratories, Inc. is a biotechnology company developing its proprietary surfactant technology as Surfactant Replacement Therapies (SRT) for respiratory diseases. Surfactants are produced naturally in the lungs and are essential for breathing. Discovery's technology produces a precision-engineered surfactant that is designed to closely mimic the essential properties of natural human lung surfactant. Discovery believes that through its technology, pulmonary surfactants have the potential, for the first time, to address respiratory diseases where there are few or no approved therapies available.
Discovery's SRT pipeline is initially focused on the most significant respiratory conditions prevalent in the neonatal intensive care unit. Discovery's lead product, Surfaxin(r), for the prevention of Respiratory Distress Syndrome (RDS) in premature infants, has received an Approvable Letter from the FDA and is under review for approval in Europe by the EMEA. Surfaxin is also being developed for the prevention and treatment of Bronchopulmonary Dysplasia (BPD, also known as Chronic Lung Disease) in premature infants. Discovery is preparing to conduct multiple Phase 2 pilot studies with Aerosurf, aerosolized SRT administered through nasal continuous positive airway pressure (nCPAP), for the treatment of neonatal respiratory failure.
To address the various respiratory conditions affecting pediatric, young adult and adult patients in the critical care and other hospital settings, Discovery has completed a Phase 2 clinical trial to address Acute Respiratory Distress Syndrome (ARDS) in adults, and is developing aerosol formulations of SRT to address Acute Lung Injury (ALI), asthma, COPD, and other respiratory conditions.
For more information, please visit our corporate website at http://www.Discoverylabs.com.
To the extent that statements in this press release are not strictly historical, including statements as to business strategy, outlook, objectives, future milestones, plans, intentions, goals, future financial conditions, future collaboration agreements, the success of Discovery's product development, events conditioned on stockholder or other approval, or otherwise as to future events, all such statements are forward-looking, and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from the statements made. Among the factors which could affect Discovery's actual results and could cause results to differ from those contained in these forward-looking statements are the risk that financial conditions may change, risks relating to the progress of Discovery's research and development, the risk that Discovery will not be able to raise additional capital or enter into additional collaboration agreements (including strategic alliances for aerosol and Surfactant Replacement Therapies), risk that Discovery will not be able to develop a successful sales and marketing organization in a timely manner, if at all, risk that Discovery's internal sales and marketing organization will not succeed in developing market awareness of Discovery's products, risk that Discovery's internal sales and marketing organization will not be able to attract or maintain qualified personnel, risk that approval by the FDA or other health regulatory authorities of any applications filed by Discovery may be withheld, delayed and/or limited by indications or other label limitations, risks that any such regulatory authority will not approve the marketing and sale of a drug product even after acceptance of an application filed by Discovery for any such drug product, risks that Discovery's CMC will not satisfy the FDA, risk in the FDA review process generally, risks relating to the ability of Discovery's third party contract manufacturers and development partners to provide Discovery with adequate supplies of drug substance, drug products and expertise for completion of any of Discovery's clinical studies, risks relating to drug manufacturing by Discovery, risks relating to the integration of manufacturing operations into Discovery's existing operations, other risks relating to the lack of adequate supplies of drug substance and drug product for completion of any of Discovery's clinical studies, risks relating to the ability of the Company and its collaborators to develop and successfully commercialize products that will combine our drug products with innovative aerosolization technologies, risks relating to the significant, time-consuming and costly research, development, pre-clinical studies, clinical testing and regulatory approval for any products that we may develop independently or in connection with our collaboration arrangements, and risks relating to the development of competing therapies and/or technologies by other companies. Companies in the pharmaceutical and biotechnology industries have suffered significant setbacks in advanced clinical trials, even after obtaining promising earlier trial results. Data obtained from tests are susceptible to varying interpretations, which may delay, limit or prevent regulatory approval. Those associated risks and others are further described in Discovery's filings with the Securities and Exchange Commission including the most recent reports on Forms 10-K, 10-Q and 8-K, and any amendments thereto.
Contact:
Discovery Laboratories, Inc.
Lisa Caperelli, Manager, Investor Relations
(215) 488-9413
--------------------------------------------------------------------------------
Source: Discovery Laboratories
http://biz.yahoo.com/pz/060405/96849.html
Dew, I believe Caris and Company agrees with your views on RHEO. They just initiated coverage today as a "SELL"
I'm still puzzled how the company's value is 3.5 times their cash holding.
http://finance.yahoo.com/q/ud?s=RHEO
My apologes for posting what was apparently a two year old article on Mitch Gold, CEO of Dendreon. I saw the date of the Seattle paper at the top and swore it was the a March date. I got spoofed from the yahoo message board.
Won't happen again Dew!
<DNDN hit a new 52 week low today. Currently trading at 4.27>
$4.22 may have been the low for this year??
DNDN now trading at $4.73, up $0.25, on vol of 600k+ shares.