3794 - Scrip
Transcription
3794 - Scrip
March 18th 2016 No 3794 scripintelligence.com New Active Substance Launches Plummet Rodrigo Kristensen/shutterstock.com The number of new active substances launched in 2015 fell by nearly a third compared with the previous year. But there is no need for despair – beating 2014’s recordbreaking year of 63 new active substance (NAS) launches was always going to be a tall order, and 2015’s tally actually came in at a very respectable 46. This makes 2015 the second-best year for launches of new active substances (i.e., new chemical and biological entities, and excluding generics, new formulations and new combinations of old products) for some time, and it is a close third in terms of overall numbers. In fact, the past three years were the best on record, and looking at the graph an upward trend can be discerned stretching back to 2007. That’s almost a decade of growth. As such, it appears that the drop in NAS launches last year was more to do with 2014 being anomalously high than anything that went wrong in 2015, and it was apparent early on that these heights would not be reached again anytime soon. As we explored last year, there was a glut of products HIGH STANDARDS: Drop in 2015’s NAS launches more to do with 2014 being anomalously high reaching the market for just one indication: hepatitis C. No fewer than seven NASs were launched for this disease in 2014 as the explosion of R&D for direct-acting antivirals came to fruition.No NASs were launched for HCV in 2015. Similarly, four products in the SGLT2 inhibitor class were launched for diabetes in 2014, but none this year. The full alphabetical list of NASs for 2015 is found in Table 1. Included in the table are the drugs’ generic and trade names, their Turn to page 10 Boehringer Hopes To Tap AbbVie’s ‘Humira Magic’ Boehringer Ingelheim and AbbVie Inc. have launched a global collaboration to develop two of the German group’s most advanced biologic compounds in immunology, a therapy field where the US-based group has acquired extensive insight from its TNF inhibitor Humira (adalimumab). The investigative two compounds - BI 655066 and BI 655064 - are in various stages of clinical development for a number of immunology indications. BI 655066, a monoclonal anti-IL-23 antibody is the most advanced and will be tested in psoriasis, Crohn’s Disease, and psoriatic arthritis. BI 655064, a monoclonal anti-CD-40 antibody which is currently in Phase I being studied for Lupus Nephritis, also has potential for treating inflammatory bowel diseases such Let’s get Social as Crohn’s Disease and colitis ulcerosa, the companies announced March 7. AbbVie Expertise Key Both compounds have been discovered and developed in-house by the family-controlled German drug maker, at its Ridgefield Connecticut labs in the US. Turn to page 8 We are tweeting, chatting, liking and sharing the latest industry news and insights from our global team of editors and analysts, join us! @scripnews /scripintelligence contents/editor’s letter singh_lens/shutterstock.com 7 1 1 3 4 5 6 6 7 8 9 New Active Substance Launches Plummet Boehringer Hopes To Tap AbbVie’s ‘Humira Magic’ Biotech IPOs: Will There Be A March Miracle? Amgen: Sandoz Seeks To Circumvent Biosimilars Law Schizophrenia Overview: Doctors Highlight Pipeline Voids PhRMA Condemns Medicare B Rx Drug Payment Experiment Medicare Chief: Engage With Us On Payment Experiment Zydus’ Humira Biosimilar: The Story So Far In India Sanofi Pasteur, Merck Part Ways On European Vaccines Venture PhRMA Chief: Time To Play Offense On Price Debate 14A Life Sciences Fortuitous Opportunity: NASA’s Twins Study 15Pharma’s Space Frontier: Come On And Take A Free Ride 16R&D Bites 18$1.14bn For Xtandi Royalties: How UCLA Cut Risk, Diversified Its Assets 19Using Patient Biology To Shepherd Clinical Trials 19Has FDA Lost Its Grip? The Amarin Deal 20Business Bulletin 20Policy & Regulation Briefs 21Expert View: Can Premium-Priced Trulicity Prickle Victoza In India? 22Stockwatch: Pharmaceutical Fight Club 23Pipeline Watch 24Appointments 13Opdivo Reimbursement Rejected In Scotland Scrip Editor: [email protected] Managing Editor: [email protected] News Editor: [email protected] South Asia Editor: [email protected] Washington Editor: [email protected] US West Coast Editor: [email protected] Features Editor: [email protected] Senior Reporter: [email protected] Principal Analysts: [email protected]; [email protected]; [email protected] Reporter: [email protected] Creative Content Reporter: [email protected] Editorial Assistant: [email protected] Production: [email protected] Pharma Data Editor: [email protected] Global Content Director: [email protected] All stock images in this publication courtesy of www.shutterstock.com unless otherwise stated. Customer Services Tel: +44 (0)20 7017 5540 or (US) Toll Free: 1 800 997 3892 Email: [email protected] To subscribe, visit scripintelligence.com To advertise, contact [email protected] We would love to hear your comments about Scrip’s coverage. Feel free to tweet us or post a discussion on our LinkedIn group, for your chance to interact with editor Eleanor Malone and the rest of the Scrip Intelligence team. Follow us at: @scripnews Join us at: linkd.in/scripintelligence Scrip is published by Informa UK Limited. ©Informa UK Ltd 2016: All rights reserved. ISSN 0143 7690. 2 March 18th 2016 Viktor Gladkov/shutterstock.com 22 Eleanor Malone, Editor, Scrip Intelligence 2014 was an extraordinary year for pharma and biotech. There were record numbers of new drug approvals, biotech investment boomed and the tax inversion gold rush intensified M&A. Last year saw the biotech boom continue for several months while M&A activity was buttressed by Pfizer and Allergan agreeing the biggest deal the industry has ever seen towards the end of the year. But everything on Earth is subject to gravity, and what goes up must come down. Sure enough, our headlines reflect a new reality. Last year, the launch of new active substances “plummeted” (see this week’s cover story for Alex Shimmings’ analysis of 2015’s drug debuts). In the second half of 2015, the decline in biotech stock values began the “is the bubble bursting?” debate, and this year, biotechnology stocks have been “in freefall”, as Mandy Jackson reports in her analysis of the current IPO landscape on p3. Even drug pricing, which has resisted the law of gravity for so long (at least in the US), is struggling to maintain its upwards trajectory, and is coming under constant pressure now from US politicians, pharmacy benefit managers and competitive challenges alike. On p6 Donna Young digs into the detail of the US government’s redesign of the Medicare Part B reimbursement system that is aimed at removing incentives for doctors to prescribe more expensive drugs. She reports on the new president and CEO of PhRMA’s determination to go on the offensive over the pricing debate, which he argues unfairly characterizes the pharma industry as adding to the cost of healthcare, on p9. With this debate making the headlines on a regular basis, the post-patent cliff uplift that the sector has enjoyed for a while now thanks to important new drug launches feels vulnerable. Gravity isn’t necessarily a bad thing for the industry, though. Bubbles burst, but being grounded enables us to distinguish true value from hype, and build on stronger foundations. Still, if that sounds depressingly mundane, NASA is offering space on its rockets for biomedical R&D projects looking to get away from gravitational pull (p15). It might be your best bet right now. Astute readers may have experienced déjà vu when reading this column last week. We apologize for any confusion caused when we accidentally republished an item from March 2014. @scripnews scripintelligence.com © Informa UK Ltd 2016 headline news Biotech IPOs: Will There Be A March Miracle? © Informa UK Ltd 2016 blackboard1965/shutterstock.com Biotechnology stocks have been in a freefall since the start of 2016, keeping firms with plans for initial public offerings on the sidelines. But with values up 5% since the start of this month, will IPO hopefuls take advantage of a Miracle March or will drug pricing concerns again push share prices lower? The Nasdaq Biotech Index (NBI) closed March 7 with a 5.15% gain versus where the index started the month, which feels like it could be the start of a recovery after investors watched the NBI fall 22.39% between the start of January and the end of February. However, the credit rating agency Moody’s Investors Service lowered its outlook for the global pharmaceutical industry from positive to stable on March 3, noting that drug makers are posting more moderate price increases in response to the ongoing debate about high prescription medicine costs in the US. Moody’s senior vice president Michael Levesque said in a statement that the rating agency’s pharma outlook changed, “because of a modest reduction in our expectations for the industry’s earnings growth.” Earnings are expected to increase across the board by 3% to 4% versus a prior forecast of 4% to 5%, due to pharma companies’ less aggressive pricing actions as well as foreign currency impacts and slower than expected adoption of some new products. Griffin Securities analyst Keith Markey noted in an interview with Scrip that, “As the pressure builds on the industry, we’re going to see greater and greater emphasis on the value for the dollar. If there are great products, but only a few people can afford them, they’re not going to do very well.” Markey said drug pricing has become a political hot potato during an intensely competitive US election cycle, with presidential hopeful Hillary Clinton shining a light on the issue in September. However, he noted, there will always be pressure on the cost of medicines when there’s a view that certain products aren’t priced appropriately relative to the value that they provide. “If there’s something truly innovative, and if it’s replacing an existing intervention, whether it’s surgical or pharmaceutical, you can look at the cost savings and use that as a guide for what the pricing ought to be,” Markey said, although he noted that different organizations have different ideas about how to value pharmaceutical innovation. He noted that the biopharma industry and health insurance provides are best-placed to look at the value of new or existing medicines versus the cost of – or lack of – available Good news for venture capitalists as M&A will help pharma companies grow in 2016 treatments. If the government steps in, “that’s probably the worst case scenario at this point in time,” he said. There’d be no flexibility in negotiating outcomes-based pricing and reimbursement agreements, which reward drug makers for therapies that improve outcomes and cut healthcare costs. IPOs Wait For Good Signs On the positive side, Levesque of Moody’s noted that mergers and acquisitions will help pharma companies grow in 2016, which is good news for venture capitalists looking to exit investments in private firms as well as for stock market investors seeking big paydays from publicly traded biotech holdings. “Pharmaceutical companies will remain active in the M&A market as they try to cut costs, achieve greater scale and diversification, and acquire pipeline drugs with high potential,” Levesque said. Moody’s issued its new outlook on global pharma a day before Syndax Pharmaceuticals Inc. launched the fifth biotech IPO of 2016 on March 2 at $12 per share, which was below the $14 to $16 offering price that Waltham, Massachusetts-based Syndax proposed in late February. The Syndax IPO, which grossed $52.8m for the cancer drug developer, was a big risk based on recent biotech IPO performance. Biotech IPOs that launched in 2015 provided such bad returns by year-end, and stock prices for therapeutics companies performed so poorly in January, that the first four drug developers to price an IPO in 2016 didn’t do so until February and they generated mixed results for investors. Of those four offerings in February, the gene editing company Editas Medicine Inc.’s @scripnews scripintelligence.com share price was 122% above of its IPO value as of March 4 and the Chinese immunooncology drug developer BeiGene Ltd. was trading 35% above its US offering price. However, Proteostasis Therapeutics Inc., AveXis Inc. and Syndax were trading 31%, 2% and 1% below their IPO values, respectively, noted the IPO-tracking firm Renaissance Capital LLC. Unfortunately, the Proteostasis, AveXis and Syndax offerings mirror more closely the performance of the 2015 IPO class, which generated an average return of 3.6% versus the offering price at year-end with last year’s IPO companies generating a 21.3% loss on average by the end of January 2016. Recent biotech IPO performance has not swayed new companies from announcing their intentions to become publicly traded entities, but some firms have withdrawn their names from contention. Hutchison China MediTech could become the second Chinese immuno-oncology company to list shares on the US stock market in 2016 after BeiGene’s successful IPO. The company said on March 4 that it may offer 6.1m American Depository Shares (ADSs) at $16.33 each to raise $100m, but that was a tentative price for the forthcoming offering. On the other hand, PLx Pharma withdrew its plan on March 7 to raise up to $68m to commercialize a delayed-release aspirin product. Also, there were no IPOs – not for biotech or among companies in any other industry – that were expected to price during the week of March 7 to 11, according to Renaissance Capital, suggesting that investors in first-time offerings of any kind remain on the sidelines. [email protected] March 18th 2016 3 headline news Amgen: Sandoz Seeks To Circumvent Biosimilars Law Lightspring/shutterstock.com Amgen Inc. has filed another lawsuit involving the Biologics Price Competition and Innovation Act (BPCIA) at the US District Court for the District of New Jersey against Novartis AG unit Sandoz Inc., accusing the biosimilar maker again of violating certain aspects of the law’s patent-dispute-resolution provisions – commonly called the patent dance. This suit involves Sandoz’s biosimilar of pegfilgrastim, a product Amgen markets as Neulasta. Elaine Herrmann Blais, a partner and head of litigation in the Boston office of Goodwin Procter LLP, noted that Amgen’s latest complaint does not allege patent infringement claims, but rather seeks a declaration from the court that Sandoz is wrong. It also alleges and that Amgen would not be limited to seeking reasonable royalties if it later brings a patent infringement suit against Sandoz concerning its pegfilgrastim product, she pointed out. Sandoz has indicated it does not intend to follow the patent dance provisions and has insisted Amgen file an immediate patent infringement action before the conclusion of the BPCIA dispute-resolution process and has threatened to seek penalties under law if the innovator failed to do so, the latter firm contended in a complaint filed on March 4. Sandoz asserted that Amgen must file its patent infringement lawsuit by March 4 or such lawsuit would be untimely and its patent infringement damages would be limited to a “reasonable royalty.” Amgen, which insisted Sandoz was wrong about having to file a patent infringement suit by March 4, said it filed its action to protect 4 March 18th 2016 its rights and to obtain an order compelling Sandoz to comply with the BPCIA’s provisions. The California biotech giant also disagreed with Sandoz’s assertion that filing a patent infringement lawsuit after March 4 deprived Amgen of its entitlement to other infringement relief provided by the BPCIA, such as a permanent injunction. Amgen already is tied up in two other lawsuits with Sandoz – one involving the latter firm’s biosimilar of filgrastim, Zarxio (filgrastim-sndz), which it wants the Supreme Court to settle – and the other involving its copycat of Enbrel, which also is before the New Jersey district court. Like the Enbrel biosimilar suit, Amgen accused Sandoz in the latest case of “piggybacking on the fruits” of the innovator’s “trailblazing efforts” and of trying to “once again” “reap the commercial benefits provided to biosimilar manufacturers under the BPCIA while seeking to avoid the obligations” Congress established to protect branded companies. In the new lawsuit, Amgen noted the BPCIA created an intricate and carefully orchestrated set of procedures for biosimilar applicants and reference product sponsors to engage in a series of information exchanges and good-faith negotiations between parties before filing a patent infringement lawsuit – provisions aimed at avoiding burdening the courts and parties with unnecessary disputes. The FDA accepted Sandoz’s 351(k) biosimilars application for its version of pegfilgratim this past October, although the company didn’t reveal that action until a few weeks later. On Nov. 13, 2015, Sandoz provided Amgen with a file transfer link to electronic files in which the biosimilar firm said constituted its application and information relating to the manufacturing process for its pegfilgrastim product. Amgen said it provided Sandoz on Jan. 12 a list identifying two patents for which the innovator believed a claim of patent infringement could reasonably be asserted against the pegfilgrastim biosimilar. Sandoz argued in its Feb. 2 reply the patents were “invalid, unenforceable or will not be infringed by the commercial marketing” of the biosimilar and said it no longer wanted to follow the strictures of the BPCIA – cutting the patent dance short and telling Amgen to move forward with a patent infringement lawsuit “Otherwise, the penalty for an untimely suit – that the ‘sole and exclusive remedy’ for any infringement be limited to a ‘reasonable royalty’ – applies.” @scripnews scripintelligence.com By refusing to participate in a “timely and complete manner” under the BPCIA, including by seeking to extinguish the innovator’s ability to consider and respond to Sandoz’s contentions about the patents the innovator had “properly identified” and “entirely evading” the negotiations, the biosimilar maker has “repudiated” its obligations under the BPCIA, Amgen charged. After beginning the statutory exchange process, Sandoz is unwilling to complete the BPCIA’s procedures and has sought to “circumvent” the law’s process by refusing to participate in the patent dance and threatening to seek penalties that limit Amgen’s relief for infringement to a reasonable royalty – rather than the full complement of remedies available, the latter company argued. Amgen has asked the court to issue a judgment declaring that that Sandoz failed to comply with the “mandatory” requirements of the BPCIA patent dispute resolution provisions, and that its attempt to “waive” the rest of the exchanges and negotiations preceding the “immediate litigation” phase of the law “means there can be no immediate patent infringement action, Herrmann Blais pointed out. Amgen said that although it has not yet filed an action for patent infringement, that does not mean it is thereby barred from later seeking the full scope of remedies available for patent infringement claims, including lost profits and injunctive relief, she explained. Herrmann Blais noted Amgen also asked for an order compelling Sandoz to comply with the rest of the BPCIA patent dance, and to compensate the innovator for “damages incurred as a results of biosimilar maker’s actions or inactions. “As Amgen notes in its complaint, this is not the first time a district court has been asked to consider whether biosimilar applicants can agree to immediate litigation on the patents listed by a reference product sponsor, instead of engaging in negotiations on which of the listed patents will be the subject of the first wave of immediate litigation contemplated by the BPCIA,” said Alexandra Lu, an associate in the litigation group at Goodwin Procter’s Boston office. Indeed, she said, the same question also has been raised in two other lawsuits pending at other district courts: Janssen v. Celltrion at the US District Court for the District of Massachusetts, and and Amgen v. Hospira, at the US District Court for the District of Delaware. [email protected] © Informa UK Ltd 2016 headline news Schizophrenia Overview: Doctors Highlight Pipeline Voids The top unmet needs in schizophrenia drug therapy are medicines for the management of negative symptoms, new treatments for refractory-positive symptoms and improved tolerability of drug treatment, according to a Datamonitor Healthcare survey of more than 200 psychiatrists. Negative symptoms in schizophrenia remain largely untreated, despite being present in nearly 50% of patients and despite the sizeable number of approved antipsychotics available for the disease overall – most of which focus on positive or cognitive symptoms. This treatment gap was marked as the greatest unmet need by 236 surveyed physicians. Even with this need, the current pipeline for new antipsychotics contains few products specifically targeting negative symptoms. Schizophrenia presents itself in various forms, with patients suffering different sets of symptoms. Certain subtypes of the disease are associated with negative symptoms, such as avolition, blunted affect, and slower movement patterns. Minerva Neurosciences is one company advancing development of a new drug, MIN101, specifically targeting negative symptoms of schizophrenia. MIN-101, currently in Phase IIb clinical trials, functions primarily by targeting the 5-HT2A receptor and Sigma2 receptor as an antagonist. It is thought that the blockade of 5-HT2A may improve negative symptoms of schizophrenia by cultivating mood without carrying significant side effects. Minerva believes MIN-101 will improve negative symptoms, cognitive symptoms, and correct sleep abnormalities in schizophrenia patients. ITI-007 from Intra-Cellular Therapies and encenicline from Forum Pharmaceuticals/ Mitsubishi Tanabe, both of which are in Phase III trials, are two other candidates being developed to help address negative and cognitive symptoms. ITI-007 also appears to address doctors’ concerns around improved tolerability of drugs for schizophrenia. Intra-Cellular Therapies reported positive Phase III data in September 2015 for ITI-007, which showed a potentially differentiated safety profile relative to approved antipsychotic drugs. As such the company is pursuing a first-line indication for ITI-007, which combines serotonin 5-HT2A receptor antagonism, dopamine receptor phosphoprotein modulation (DPPM), glutamatergic modulation and serotonin reuptake inhibition in a once-daily pill. Intra-Cellular reported that ITI-007 did not differ significantly from placebo in terms © Informa UK Ltd 2016 of safety, including motor, metabolic and cardiovascular side effects associated with other schizophrenia drugs. Sagient Research’s BioMedTracker expects ITI-007 to reach the market late in 2017 or early 2018 if the company is successful in gaining market approvals. Meanwhile, encenicline’s recently discovered gastrointestinal safety issues (noted in Alzheimer’s trials of the drug) could pose a risk to its development program. Positive symptoms of schizophrenia, such as hallucinations and/or delusions, are more widely treated by current therapies. However, the issue of drugs for refractory patients was among top concerns for doctors surveyed by Datamonitor Healthcare. The most commonly used option in treatment-resistant patients is clozapine, an atypical antipsychotic that improves schizophrenia symptoms in patients who do not respond adequately to standard antipsychotic treatments. Nevertheless, Datamonitor Healthcare analyst Ines Guerra highlighted that while clozapine is a “useful therapeutic option, the drug can cause severe neutropenia.” In the US, clozapine-treated patients need to be monitored and managed for severe neutropenia events, under the Clozapine Risk Evaluation and Mitigation Strategy (REMS) Program. There are currently no late-stage pipeline candidates that appear to have the potential to alleviate refractory positive symptoms, but between 10% and 30% of patients show little symptomatic improvement after multiple trials of typical antipsychotics. Oral Therapies Lead Charge Datamonitor Healthcare found that in every surveyed market, the most commonly prescribed treatments for acute schizophrenia included oral formulations of olanzapine, risperidone, and aripiprazole. However, of these 15 leading therapies, no single medication is recommended for first-line use in the US, the UK, Germany, Spain and Italy. This is likely because of the lack of differentiation between the clinical profiles of the available antipsychotics. To view a table online of all products in clinical development for the treatment of schizophrenia, Phase I to NDA submission, go to: http://bit.ly/1Uwqoy7 [email protected] Leading Schizophrenia Therapeutics Drug Name Company Most Commom Therapeutic Role Abilify Otsuka/Lundbeck Acute and maintenance treatment of schizophrenia Oral, tablets Abilify Maintena (aripiprazole) Otsuka/Lundbeck Acute and maintenance treatment of schizophrenia Intramuscular, long-acting injection Clozaril (clozapine) Novartis Acute and maintenance treatment of schizophrenia Oral, tablets Fanapt (iloperidone) Vanda Pharmaceuticals Treatment-resistant schizophrenia, reduction in risk of suicidal behavior in schizophrenia Geodon/Zeldox (ziprasidone) Pfizer/Meiji Seika Acute and maintenance treatment of schizophrenia Oral, tablets Invega (paliperidone) J&J Acute and maintenance treatment of schizophrenia Oral, tablets in adults and adolescents Invega Sustenna J&J Acute and maintenance treatment of schizophrenia Intramuscular, long-acting injection Latuda (lurasidone) Dainippon Sumitomo Acute and maintenance treatment of schizophrenia Oral, tablets Lonasen (blonanserin) Dainippon Sumitomo Acute and maintenance treatment of schizophrenia Oral, tablets Risperdal (risperidone) J&J Acute and maintenance treatment of schizophrenia Oral, tablets in adults and adolescents Risperdal Consta (risperidone) J&J Acute and maintenance treatment of schizophrenia Intramuscular, long-acting injection Saphris/Sycrest (asenapine) Allergan/Lundbeck/ Meiji Seika Acute and maintenance treatment of schizophrenia Oral, tablets Seroquel (quetiapine) AstraZeneca/ Astellas Acute and maintenance treatment of schizophrenia Oral, tablets in adults and adolescents Zyprexa (olanzapine) Eli Lilly Acute and maintenance treatment of schizophrenia Oral, tablets in adults and adolescents Zyprexa Relprevv Eli Lilly Acute and maintenance treatment of schizophrenia Intramuscular, long-acting injection @scripnews scripintelligence.com Administration Oral, tablets March 18th 2016 5 headline news PhRMA Condemns Medicare B Rx Drug Payment Experiment The Pharmaceutical Researchers and Manufacturers of America (PhRMA) wasted no time in condemning the Obama administration’s plans to launch a new experiment testing whether alternative payment designs may lead to reducing Medicare Part B expenditures, while preserving and potentially even enhancing beneficiaries’ quality of care. “Proposing sweeping changes to Medicare Part B drug reimbursement without thoughtful consideration and stakeholder input is not the right approach and puts Medicare patients who rely on these medicines at risk,” PhRMA spokesperson Allyson Funk told Scrip in a statement. She insisted the current drug payment methodology for Part B, which covers prescription medicines that are administered in physician’s offices or hospital outpatient departments, such as cancer therapies, injectables antibiotics and eye care treatments, is “an effective, market-based pricing mechanism that works to control costs.” But Patrick Conway, chief medical officer at the Centers for Medicare & Medicaid Services (CMS), argued the current structure provides “perverse incentives” that encourages doctors to prescribe the most expensive drugs over lower-cost products that are just as effective. Currently, Medicare Part B generally pays physicians and hospital outpatient facilities a drug’s average sales price (ASP) plus a “statutorily mandated” addon of 6%. But in a Federal Register notice posted online on March 8, CMS contended the ASP methodology “may encourage the use of more expensive drugs because the 6% add-on generates more revenue for more expensive drugs.” “The Part B payment method provides weak incentives for physicians to consider value – that is choose the lowest cost therapy to effectively treat a patient,” the agency said in a separate document posted on its website. Read full story at: http://bit.ly/1U0HuFX [email protected] 6 March 18th 2016 Medicare Chief: Engage With Us On Payment Experiment Centers for Medicare & Medicaid Services (CMS) acting administrator Andy Slavitt entered the lion’s den on March 9 and faced about 300 hundred drug company executives and other healthcare stakeholders at a meeting in Washington the day after releasing a controversial proposal to overhaul the way the government pays for outpatient prescription medicines, which had some industry leaders up in arms before it was even officially revealed. But Slavitt was conciliatory, declaring at the annual meeting of the Pharmaceutical Research and Manufacturers of America (PhRMA) that “I don’t think we feel like we have the monopoly on good policy.” He insisted, however, there was “nothing we proposed to do or intend to do or should do that, in any way, prevents a patient from getting the prescription medicine that they need.” Doctors encouraged to prescribe expensive drugs over lower-cost comparators with same benefits Slavitt said CMS’ March 8 proposal to test whether alternative payment designs may lead to reducing expenditures for Medicare Part B, which covers prescription medicines that are administered in physician’s offices or hospital outpatient departments, such as cancer therapies, injectables antibiotics and eye care treatments, would allow the agency to engage with stakeholders and the public and “invite people” to look at six “substantive” ideas. The centerpiece of the experiment involves changing the Medicare Part B reimbursement rate doctors and outpatient facilities are paid for prescription drugs. Currently, the payment covers a drug’s average sales price plus a “statutorily mandated” add-on of 6%. But CMS wants to test whether changing the add-on payment to 2.5% plus a flat fee payment of $16.80 per drug would strengthen the financial incentive for physicians to choose higher value drugs and improve quality. CMS officials argued the current system encourages doctors to prescribe the most expensive drugs over lower-cost products that are just as effective. But the plan was swiftly condemned by the big brand-name drug lobbying groups – with PhRMA warning that making “sweeping changes” to the Medicare Part B drug reimbursement rate “without thoughtful consideration and stakeholder input” would put beneficiaries “at risk.” @scripnews scripintelligence.com The Biotechnology Innovation Organization said it was “gravely concerned” CMS’ proposed model “threatens to disrupt the successful reimbursement framework” already in place. But Slavitt contended that “These are not ideas we’ve made up.” Rather, he said, the concepts in CMS’ Part B payment proposal have been “long discussed” and were “long-brought forward,” and should help people to want to connect with the agency – eventually getting to the “substance of what will make good policy.” “My ask of everyone is that we engage on this together, and we engage on it seriously and collaboratively,” the CMS chief declared. Slavitt said the agency’s goal with the Part B experiment is to determine what works well and what doesn’t and “adjust.” He acknowledged that before CMS could even get the proposal out the door, there already were efforts to stop it in its tracks. Kenneth Frazier, chair and CEO of Merck & Co. Inc. and PhRMA’s chair, said the industry was concerned about CMS making a “major shift in the healthcare delivery system.” “People want to make sure we are thinking about this very carefully,” Frazier said. Frazier told Slavitt to expect to hear “constructive reactions” from drug makers over the next few weeks. “Do I think we’ve thought of everything and every consequence? Absolutely not,” Slavitt responded. But he defended CMS’ actions – insisting it is a “process that invites the most public input possible.” He reminded drug makers at the PhRMA conference “We are in early innings still” with the Part B payment experiment, which actually won’t get underway until this fall, with the second stage not launching until early next year. Slavitt admitted that often a “policy that sounds great in Washington” may actually end up being burdensome when it’s put to the test in the real world, which is why Slavitt said it’s important to experiment with new models like CMS is attempting to do with the Medicare Part B program, rather than simply instituting the plan. Slavitt said he believes industry and government already are “past the point of finding the big ideas” on payment and reimbursement issues. “We are at the really interesting and difficult part of the nitty-gritty of rolling up our sleeves and making the world better for people,” he said. [email protected] © Informa UK Ltd 2016 headline news Zydus’ Humira Biosimilar: The Story So Far In India Challenges While Exemptia’s patient base may still be relatively small compared with the patient pool, expanding access in India for such products, though, comes with significant challenges given that only an estimated 400 © Informa UK Ltd 2016 singh_lens/shutterstock.com One dose of AbbVie’s blockbuster biologic, Humira (adalimumab), in the US equals around six doses of Zydus Cadila’s cut-price biosimilar version in terms of the cost of therapy and the Indian firm’s product appears to have triggered interesting shifts both in treatment dynamics and the competitive landscape on the domestic market. Zydus Cadila’s Exemptia (adalimumab) costs INR11,000-14,000 ($163.4-208) per dose, a fraction of Humira’s international price, estimated at around $1,000 per vial, and the Indian firm now has around 2,000 patients on the product since its debut in December 2014, it told Scrip. Zydus had at the time of launch claimed that Exemptia was a “fingerprint match” with the originator product in terms of safety, purity and potency. Experts suggest that the relevance of the biosimilar’s price advantage is probably more important in an out-of-pocket market like India, where physicians generally try to economize and prescribe adalimumab for around six months to bring down/control the severity of the symptoms after which the patient can be tapered off the biologic and maintained on oral/conventional therapies. “Physicians may want the patient to continue on the product for longer but the patient’s economic condition may not permit that in India,” an industry expert told Scrip. Significantly, the arrival of biosimilar adalimumab is also believed to have triggered price cuts in therapies such as etanercept and infliximab – the latter is said to have seen dramatic reductions in the average monthly treatment costs over the past 15 months, though specifics could not immediately be got. “In the last six months there has been a reduction of about 40% in the prices of other biologics,” Zydus Cadila said. Earlier this year, competitor Torrent Pharma had followed Zydus onto the domestic market with its adalimumab biosimilar (marketed as Adfrar). The product is part of the biosimilars portfolio covered under Torrent’s 2014 exclusive licensing pact with the local firm Reliance Life Sciences, wherein the latter was to develop and supply these products to Torrent post regulatory approvals. top Indian physicians are said to be focused on rheumatology as a discipline and they are largely based in metro cities and Class A towns. “There is the question of awareness and access in terms of medical expertise. Besides, unfortunately, though patients may have medical insurance, typically in India, insurance covers only in-patient treatments. This is a chronic disease that has a significant economic/health burden, but our insurance system is not geared to support this,” the expert added. Zydus claimed Exemptia was a ‘fingerprint match’ in terms of safety, purity and potency Zydus, though, maintains that it is on course to developing Exemptia into an INR1bn brand in around three years. It is believed to be experimenting with an equal monthly instalment (EMI)-based financing model for the product. The model has currently been rolled out on a pilot basis, though the absence of a “pre-defined hard stop” for treatment adds to complexities of expanding such models. India has seen such EMI-based financing models for hepatitis C therapies and in the devices space, among others. Typically, under such financing schemes, patients can stagger payment of the actual therapy cost over a specified period via EMIs – along the lines of similar schemes for consumer durables. Zydus had, at the time of launch, also indicated that it was putting in a place an Exemptia Care program, which aims to provide important support and information regarding access, adherence, awareness and help patients to appropriately manage their disease. @scripnews scripintelligence.com Exemptia has been approved for the treatment of auto immune disorders such as rheumatoid arthritis, juvenile idiopathic arthritis, psoriatic arthritis, ankylosing spondylitis, ulcerative colitis and Crohn’s disease in India. Zydus, whose pipeline comprises 24 biosimilars under development including four novel biologics, expects to take products such as Exemptia to international markets. “The plan is to launch all the molecules first in India, then in the emerging markets and finally selected molecules globally in the more regulated markets (the US and the EU). Three molecules are already in global development for the more regulated markets,” Zydus said. On AbbVie’s reference to limited studies with Exemptia in India, Zydus indicated that its product has a finger print match with the innovator product – one of the most difficult things to achieve and that once achieved the assumption generally is that all that has been proven with the innovator brand should be replicable with the fingerprint like biosimilar. Zydus also said that its study was statistically powered, significantly enough for the regulator to give an approval. The company added that it expects to take its product to other markets and its dossiers would be “robust” to withstand those guidelines and pass through. AbbVie had earlier noted that Exemptia’s Phase III study included only 120 patients in India and in a single indication, rheumatoid arthritis. “As a result, it is unclear whether it is a biosimilar by the standards of other regulatory agencies, such as the FDA,’’ AbbVie said then. Humira raked in 2015 revenues of $14bn (+11.7%), accounting for more than half of AbbVie’s $22.8bn in total sales for the year. [email protected] March 18th 2016 7 headline news Boehringer Hopes To Tap Abbvie’s ‘Humira Magic’ Boehringer Ingelheim says it now needs a well-placed, experienced partner to ensure that the medicines are developed and commercialized as best and as quickly as possible. “We have entered this collaboration to ensure that these two very promising compounds can be progressed to benefit all patients directly from the moment of launch,” according to Jan Poth, who heads immunology at Boehringer Ingelheim “We have been active in immunology for quite some time already but we don’t have any product on the market yet so we don’t have a commercial organisation for that therapeutic area yet. AbbVie on the other hand has extensive experience in the immunology field,” Poth said in an interview, noting as an example AbbVie’s blockbuster Humira, currently the biggest selling drug in the world. “So they are the ideal partner for us [and Boehringer Ingelheim’s aspirations in immunology].” “This collaboration positions BI 655066 as AbbVie’s lead investigational compound in psoriasis, complementing our robust immunology pipeline,” said AbbVie’s chief scientific officer, Michael Severino. “Our expertise in developing and commercializing the world’s leading biologic, combined with Boehringer Ingelheim’s clinical success to-date will enable us to offer patients a new treatment option with the potential to meaningfully improve the standard of care,” Severino said in a statement. More than 100 million people suffer from psoriasis, a chronic, systemic, immune-mediated disease. The two companies will work together in clinical trials comprising various indications for the two compounds. BI 655066 is entering four Phase III trials in psoriasis, two of which have already been initiated. “And probably in the late 2016 or early next year, we will begin Phase III trials [of BI 655066] in Crohn’s Disease. This compound is currently in Phase II testing for psoriatic arthritis,” Poth told Scrip. The last of the four Phase III trials is expected to end in late 2019 or early 2020, he added. BI 655066 is also in Phase II trialling for Ankylosing Spondylitis as well as for asthma. The new collaboration’s second focus, BI 655064, is a bit earlier in clinical development and will start Phase II testing in Lupus Nephritis within the next few months, Poth said. Under the deal, AbbVie will make an initial upfront payment of $595m. Boehringer Ingelheim will be eligible to receive additional development and regulatory milestone payments and royalties on net sales, the terms of which are not disclosed. The partners hope BI 655066 can replicate 8 March 18th 2016 (Continued from page 1) the positive data seen in a Phase II head-tohead psoriasis study that showed it having superior efficacy over Johnson & Johnson’s successful IL-12/IL-23 blocker Stelara (ustekinumab). Last October, Boehringer Ingelheim released nine-month data from that study, dubbed NCT02054481, which investigated the efficacy and safety of BI 655066 versus ustekinumab in 166 patients and which after nine months showed 69% of patients with moderate-to-severe plaque psoriasis maintained clear or almost clear skin as measured by the Psoriasis Area Severity Index (PASI 90) with BI 655066, compared to 30% of patients on ustekinumab. Patients also achieved this skin clearance significantly faster - around eight weeks versus approximately 16 weeks, and for more than two months longer than those on ustekinumab. Completely clear skin (PASI 100) was maintained after nine months in nearly triple the percentage of patients on BI 655066 compared with ustekinumab, or 43% versus 15%, Boehringer Ingelheim said at the time. “We hope to repeat these kinds of results in Phase III and, based on that, expect these compounds to have very good potential,” Poth said. The abnormal immune response in psoriasis is driven by immune cells and proteins that are released, known as cytokines. A cytokine known as interleukin-23 (IL-23) is a key driver in psoriasis, Poth explained. AbbVie To Lead Regulatory Pathway Asked about the likely regulatory pathway for the two investigation biologics, BI 655066 and BI 655064, Poth replied: “that’s a little down the road but the plan is for AbbVie to lead the registration process. The current timeline foresees a launch of BI 655066 sometime in late 2019 or early 2020.” Boehringer Ingelheim has already had an end-of-Phase II meeting with the FDA on BI 655066.” The program has already been evaluated by the FDA as well as the EMA [European Medicines Agency] and we have taken their advice into account with these coming Phase III studies,” he said. Eventual commercialization of the two compounds will be done solely by AbbVie. The immunology space is particularly fertile for me-too drug and biologic development. With multiple, relatively common diseases including rheumatoid arthritis, psoriasis, ankylosing spondylitis and inflammatory bowel disease sharing the same or similar biological pathways, immunology products like AbbVie’s Humira have become megablockbusters. [email protected] @scripnews scripintelligence.com Sanofi Pasteur, Merck Part Ways On European Vaccines Venture retrorocket/shutterstock.com Sanofi Pasteur MSD - the joint venture in Europe between Sanofi SA’s vaccine arm and Merck & Co – is ending after 22 years as the duo believes they can better manage their product portfolios independently. Founded in 1994 and owned 50/50 by the French and US drugmakers, Sanofi Pasteur MSD was formed to combine their geographic footprints and vaccines offerings. It had sales of €824m in 2015, but revenues have flattened recently. The companies on March 8 said the decision to dissolve their vaccines partnership reflected changing times in international markets and within the companies themselves. “Merck and Sanofi have reviewed their strategic priorities for vaccines operations and determined that operating independently would benefit both by giving them better control and flexibility, execute more efficiently, accelerate growth within their businesses and optimise global access to their vaccines,” Merck & Co spokesperson Lainie Keller told Scrip. Reflects New Sanofi CEO’s Priorities The arrival of Sanofi’s new chief executive Olivier Brandicourt has also played a part. The French executive, who is reshaping France’s biggest pharmaceuticals group, has been in the role less than a year but served notice last November that its vaccines business was a core activity. Sanofi Pasteur believes its experience developing Dengvaxia, the first vaccine to prevent dengue fever, as ➤ © Informa UK Ltd 2016 headline news well as vaccines against Chinese encephalitis and yellow fever, gives it clear competitive advantages going forward. The decision to dissolve the vaccines partnership reflected changing times in international markets and within the companies themselves Asked by Scrip whether Brandicourt’s plans for the overall group were the catalyst for the decision, spokesperson Alain Bernal replied: “The decision was taken, it is true, at a point where we at Sanofi are looking for more simplification and clarity within the organization, so it should be seen in conjunction with optimizing our vaccines businesses, but I don’t think one thing triggered the other.” Bernal said each company in the joint venture now had adequately large vaccine portfolios to proceed alone. “The joint venture had a very good rationale when formed, and was very successful. Now, not all Sanofi Pasteur MSD products are being promoted at the level that they could or should be, however, so customers are not getting the optimum options for our respective vaccines. Separating should improve business for each of the companies,” Bernal said. Merck and Sanofi said they would integrate their respective European vaccines businesses into their existing operations, independently manage their product portfolios and pursue distinct growth strategies. “We understand that one time cost of restructuring for Sanofi should be around €100m, with eventual revenue synergies of €60m driven by Sanofi being able to provide more sales effort behind their own products,” commented analysts at Credit Suisse in a note. They added that “Merck should see a small boost to their revenues as they begin to book sales for their own vaccines, but this is expected to generally be offset by loss of equity income from the JV.” Merck will create a new vaccine division for Europe, located in Lyon, France, the same city that Sanofi Pasteur has its vaccines base. Both Sanofi Pasteur and Merck said they intend to keep investing in vaccines R&D and will continue efforts to commercialize Vaxelis, a combination vaccine designed to protect infants and toddlers against diphtheria, tetanus, pertussis, hepatitis B, poliovirus types 1, 2 and 3, and invasive disease caused by Haemophilus influenzae type B, giving it the unwieldy nickname DTaP5-IPV-Hib-Hep. Sanofi Pasteur and Merck said they will ensure that any impact on employees as a result of the proposed changes to the business model “will be managed responsibly. We are also focused on a smooth and orderly transition while achieving our public healthcare goals and upholding our commitments to our customers and business partners.” Sanofi Pasteur and Merck expect dissolution of their joint venture to complete by the end of 2016. [email protected] PhRMA Chief: Time To Play Offense On Price Debate Drug makers have played defense long enough in the debate over skyrocketing prices of medicines and it’s time to go on the offense and drive the discussion, declared the new president and CEO of the Pharmaceutical Research and Manufacturers of America (PhRMA). Stephen Ubl asserted the debate over drug prices in the US has largely been “myopic and misinformed.” It’s myopic, he said during a March 10 address at PhRMA’s annual meeting in Washington, because it focuses on a “small” share of healthcare spending and “not the true cost driver, chronic disease, which is 80% of US healthcare spending.” Ubl noted the lion’s share of healthcare costs are being borne in the institutional settings, like hospitals, skilled nursing facilities and physician office visits, where he insisted “Our products stand the best chance of ameliorating those costs.” Ubl reverberated what’s become PhRMA’s standard argument – the debate over drug prices “ignores the value our products bring to patients, the healthcare system and the broader economy” – pointing to hepatitis C medicines, which have been at the center of much of the firestorm, as actually avoiding costly complications, like liver disease or transplants, and therefore saving the system money. Value, he charged, is “barely a footnote.” Ubl pointed to the tweet sent out last September by former Secretary of State and © Informa UK Ltd 2016 presidential candidate Hillary Clinton about her plan to take on “price gouging, which led to a $132bn drop in market cap in the industry, as how vulnerable drug makers are to the debate over the costs of medicines. But Ubl argued “the debate is misinformed because it focuses on list prices and ignores increasingly consolidated and sophisticated purchasers with enormous marketplace leverage.” ‘Critics are basing all of their policy solutions on the anomaly’ He contended that “critics are basing all of their policy solutions on the anomaly” or 2014, when there were record FDA approvals, a Medicaid expansion and the entrance to the US market of new, and expensive, hepatitis C medicines, “and not the long-term trend.” Ubl criticized the Centers for Medicare & Medicaid Services’ proposal to overhaul the way the government pays for outpatient prescription medicines as “sweeping” and radical. “This proposal would apply to vast majority of the country, violating definition of demonstration and the spirit of the authority outlined in the statute,” Ubl said, taking more of a hard-line tone than PhRMA’s @scripnews scripintelligence.com outgoing chair, Kenneth Frazier, CEO of Merck & Co. Inc.,took the day before. “It would usher in a new era of government deciding what seniors can get. We believe these are the wrong ways to solve the healthcare cost problem.” The new PhRMA chief, who stepped in to John Castellani’s shoes this past December, said “No one should doubt our resolve to fight price controls in whatever shape they may take.” “We know from experience,” he said, “mandating prices leads to reduced access and choice for patients.” At PhRMA’s conference, Ubl also outlined a new policy framework, which he said consisted of four commonsense proposals: modernizing the FDA; moving towards valuebased healthcare; engaging patients; and addressing market distorting policies. “Now is the time for PhRMA to play a leadership role in advancing pragmatic, proconsumer policies that enhance the private market and address costs holistically,” he said. Also at the meeting, the board elected its new directors, naming Biogen Inc. CEO George Scangos as the lobbying group’s new chair, succeeding Frazier. Joaquin Duato, worldwide chair of pharmaceuticals at Johnson & Johnson Inc., also was voted chair-elect and Joseph Jimenez, CEO at Novartis AG, assumed the role of board treasurer. [email protected] March 18th 2016 9 headline news New Active Substance Launches Plummet mechanisms of action, the companies which have launched them, the diseases they are launched for, and the country and month of first launch. Also noted is an indication of whether or not they have received orphan drug status, and whether or not they can be considered novel in terms of whether a drug with the same mechanism(s) is already on the market. These are some of the key metrics by which to measure pharma’s R&D performance over the year. Arguably for innovation, the most important is the number with previously unseen mechanisms of action, and here the list makes for encouraging reading. An impressive 14 of the NASs listed are first-inclass products, up from 12 (19.4%) in 2014 and therefore making up an even greater percentage of the whole at 30.4%. Orphans One striking feature of the 2015 NAS list is how many of the drugs which feature are orphans: at 24 this was more than half. The final column in the NAS table shows (see p11 & 12) whether or not each of the NASs has orphan drug status in at least one market for at least one condition (it may not always be the country/ disease for which it received its first launch, although this is mainly the case). A comparison with recent years shows a dramatic increase in the proportion of NAS launches with an orphan drug status, showing a real shift in drug development towards rare diseases. Interestingly a large proportion of these are for cancer indications (particularly multiple myeloma) rather than the relatively easier-todevelop enzyme replacement therapies. Company Performance Once again, Novartis led the way with four NAS first launches, and in 2015 the Swiss firm shared top-billing with Allergan (it was with Merck & Co and Eli Lilly the year before). But Merck still did well in 2015 with three NAS launches to its name. Indeed, each of the top 10 companies managed at least one launch last year. But six of them were outplayed by relative minnow Alexion, which enjoyed a stellar year with two product launches, both in its core area of expensive enzyme replacement therapies. Early sales data have been disappointing, though. One of the most notable features of the list is the further evidence it provides that the revolution in cancer R&D is now bearing NAS fruit. In 2014, products in the oncology area accounted for 29.3% of drugs in the pipeline, but only 14.5% of NAS launches. In the year just closed, this gap had narrowed 10 March 18th 2016 (Continued from page 1) at 30.4% and 28.2%, respectively. Thirteen novel anticancers made their market debuts during 2015, making this the most successful therapeutic group by some way. And when compared with oncology performance for the past 15 years a clear trend can be discerned. Five of the new anticancers are first-inclass products, and three of these also fit into the rapidly expanding immuno-oncology area. These include AbbVie and BristolMyers Squibb’s Empliciti (elotuzumab), the first SLAMF7 antagonist. It’s one of nine monoclonal antibodies on the list this year, four of which are for cancer. SLAMF7 is a CD2-like receptor involved in the activation of cytotoxic cells, and the drug was launched for the treatment of multiple myeloma. In another first for multiple myeloma, Genmab and Johnson & Johnson’s Darzalex (daratumumab), the first CD38 antagonist, was launched in the US, while the final immuno-oncology MAb anticancer NAS on the list is United Therapeutics’ Unituxin (dinutuximab). This chimeric MAb targets ganglioside antigen GD2 in the treatment of pediatric Neuroblastoma, and has orphan drug designation in both the EU and the US. By contrast, there were far fewer antiinfectives hitting the pharmacies for the first time last year – eight, compared with 21 in the previous 12 months. But this was partly due to the previous year’s HCV bubble, while 2015 was also light on new vaccine introductions. There is only one first-in-class anti-infective this year, and this is just a component of an antibiotic combination. AstraZeneca and Allergan added the novel specific lactamase A and C inhibitor avibactam to the previously-marketed cephalosporin ceftazidime to form Avycaz for abdominal and urinary tract infections. And it was yet another disappointing year for neurologicals. Despite being once again the second-largest area in terms of number of pipeline products, it fared poorly in delivering just two new drugs to the market, continuing a run of poor years for this difficult area. The cardiovascular class performed better. Two new PCSK9 inhibitors, Regeneron/ Sanofi’s Praluent (alirocumab) and Amgen’s Repatha (evolocumab), reached the market for hypercholesterolemia, with Praluent just pipping its rival to the market after a very close race. These injectable therapies are now at the forefront of pricing and reimbursement battles, a reminder if any were needed that getting a product to market is not the final hurdle to market success. Also boosting the year’s tally to five, and keeping the cardiovascular NAS @scripnews scripintelligence.com output relatively steady over the years, were Boehringer Ingelheim’s Praxbind and Novartis’s Entresto. Praxbind (idarucizumab) is the first specific reversal agent for an oral anticoagulant, in this case Boehringer Ingelheim’s Pradaxa (dabigatran etexilate) in cases where surgery is required or uncontrolled bleeding occurs. The company expects Praxbind to be used minimally, but its existence should boost Pradaxa’s use, as doctors will be more confident using it knowing its effect can be reversed when necessary. Entresto contains the widely-prescribed angiotensin II 1 antagonist valsartan along with new drug sacubitril and is an important improvement in the treatment of symptomatic chronic heart failure. Other novel entries The respiratory arena has not benefitted from much in the way of new mechanistic approaches in recent years, but in 2015 GlaxoSmithKline produced Nucala (mepolizumab), the first interleukin-15 antagonist to reach the market. This is the first of a new wave of products focusing on severe refractory eosinophilic asthma. Another novel NAS MAb which targets an interleukin, this time 17A, Novartis’ Cosentyx (secukinumab) was one of the Japanese first launches, debuting there back in January 2015. Another notable entry is Sprout’s (Valeant’s) Addyi (flibanserin), which gained approval at the third attempt for acquired generalized hypoactive sexual desire disorder in premenopausal women. But side-effect limitations and a lack of marketing mean that, far from being the “female Viagra,” the drug has thus far been a commercial flop. One thing that hasn’t changed over the years is the US’s dominance of first launches. It was the market of choice for 29 of the NASs, well over half at 63%, and up from 2014’s 56%. Japan again performed well, its eight launches this year beating the whole of Europe combined; its recent push to accelerate approval timelines is having the desired effect. Within Europe, Germany was the most popular European market for a first launch, despite some companies’ ongoing reimbursement problems there. [email protected] With thanks to Ian Lloyd senior director for Citeline’s Pharmaprojects for help in compiling, refining and analysing the NAS list. Click here to access the full version of this story, including interactive charts and tables. © Informa UK Ltd 2016 headline news Table 1: New Active Substance Launches 2015 Generic Name Trade Name Company Indication Mechanism Of Action Country Of First Launch Month Of First Launch? ↕ First In Class? Orphan Drug Status? afamelanotide Scenesse Clinuvel Erythropoetic protoporphyria Melanocyte stimulating hormone A receptor agonist Italy and Switzerland July Yes Yes alipogene tiparvovec Glybera uniQure/Chiesi Lipoprotein lipase deficiency Lipase clearing factor stimulant Germany September No Yes alirocumab Praluent Regeneron/Sanofi Heterozygous familial hypercholesterolemia & mixed dyslipidaemia PCSK9 inhibitor USA July Yes No anthrax immune globulin, Emergent Anthrasil Emergent BioSolutions Anthrax infection Immunostimulant USA September No Yes asfotase alfa Strensiq Alexion Perinatal, infantile and juvenile-onset hypophosphatasia Alkaline phosphatase stimulant Japan August Yes Yes avibactam* + ceftazidime Avycaz AstraZeneca/Allergan Complicated abdominal and urinary tract infections Lactamase A/C inhibitor, Cell wall synthesis inhibitor USA April Yes No brexpiprazole Rexulti Otsuka Major depressive disorder and schizophrenia Dopamine D2/D3 receptor agonist, 5-HT1A receptor agonist, 5-HT2A receptor antagonist USA November No No cangrelor tetrasodium Kengrexal The Medicines Company Adjunctive therapy to percutaneous coronary intervention Purinoreceptor P2Y12 antagonist, Platelet aggregation inhibitor EU and USA September No No ceftolozane sulfate** + tazobactam Zerbaxa Cubist/Merck & Co Complicated,intra-abdominal & urinary tract infection Cell wall synthesis inhibitor, Lactamase inhibitor USA February No No chidamide Epidaza Shenzhen Chipscreen Biosciences Peripheral T-cell lymphoma Histone deacetylase inhibitor China January No Yes cobimetinib Cotellic Exelixis/Roche Melanoma MEK inhibitor USA November No Yes daratumumab Darzalex Genmab/Johnson & Johnson Multiple myeloma CD38 antagonist; Anticancer immunotherapy USA November Yes Yes deoxycholic acid Kybella Kythera (Allergan) Submental fat reduction Membrane integrity inhibitor USA June No No dinutuximab Unituxin United Therapeutics Neuroblastoma Ganglioside antigen GD2 antagonist, Anticancer immunotherapy USA October Yes Yes DTP + polio vaccine, Kitasato Daiichi Sankyo Squarekids Daiichi Sankyo Pertussis, diphtheria, tetanus and poliomyelitis prophylaxis Immunostimulant Japan December No No elotuzumab Empliciti AbbVie/Bristol-Myers Squibb Multiple myeloma SLAMF7 antagonist; Anticancer immunotherapy USA December Yes Yes eluxadoline Viberzi Furiex (Allergan) Diarrhoea-predominant irritable bowel syndrome Opioid mu receptor agonist, Opioid delta receptor antagonist USA December No No erismodegib Odomzo Novartis Basal cell carcinoma Hedgehog pathway inhibitor USA October No Yes evolocumab Repatha Amgen Heterozygous familial hypercholesterolemia & clinical atherosclerotic cardiovascular disease PCSK9 inhibitor UK and USA September No Yes flibanserin Addyi Sprout Pharmaceuticals (Valeant) Acquired generalized hypoactive sexual desire disorder in premenopausal women 5HT1A receptor agonist, 5-HT2A receptor antagonist, Dopamine D4 receptor agonist USA October Yes***** No idarucizumab Praxbind Boehringer Ingelheim Anticoagulant reversal Chelating agent USA October No Yes isavuconazonium chloride Cresemba Basilea/Astellas Invasive aspergillosis & mucormycosis Cell wall synthesis inhibitor USA April No Yes Turn to page 12 © Informa UK Ltd 2016 @scripnews scripintelligence.com March 18th 2016 11 headline news ixazomib citrate Ninlaro Takeda Multiple myeloma Proteasome inhibitor, Transcription factor NF-kappaB inhibitor USA December No Yes lenvatinib Lenvima Eisai Metastatic thyroid cancer VEGFR-1,2,3 tyrosine kinase inhibitor, FGF receptor 1,2,3,4 tyrosine kinase inhibitor, Platelet-derived growth factor receptor beta kinase inhibitor, RET tyrosine kinase inhibitor, C-kit inhibitor USA February Yes****** Yes lumacaftor*** + ivacaftor Orkambi Vertex Cystic fibrosis CF transmembrane conductance regulator agonist USA September No Yes lusutrombopag Mulpleta Shionogi Thrombocytopenia Thrombopoietin agonist Japan December No No mepolizumab Nucala GlaxoSmithKline Severe asthma Interleukin 5 antagonist USA December Yes Yes myoblast cell therapy, ACT HeartSheet Terumo Congestive heart failure Not applicable Japan September No Yes necitumumab Portrazza Eli Lilly Non-small cell lung cancer EGFR antagonist USA December No Yes nemonoxacin Taigexyn Warner Chilcott/ TaiGen Community-acquired pneumonia DNA topoisomerase II/IV inhibitor Taiwan December No No omarigliptin Marizev Merck & Co Type 2 diabetes Dipeptidyl peptidase 4 (DPP IV) inhibitor Japan December No No osimertinib Tagrisso AstraZeneca Non-small cell lung cancer EGFR kinase inhibitor USA November No Yes palbociclib Ibrance Pfizer/Amgen Breast cancer Cyclin-dependent kinase 4/6 inhibitor USA February Yes No panobinostat Farydak Novartis Multiple myeloma Histone deacetylase inhibitor USA March No Yes patiromer Veltassa Relypsa Hyperkalaemia Potassium antagonist USA December Yes No polmacoxib Acelex Aestura (AmorePacific)/ CrystalGenomics Musculoskeletal and osteoarthritic pain Cyclooxygenase 2 inhibitor, Carbonic anhydrase inhibitor South Korea September No No rolapitant Varubi OPKO Health/Tesaro Chemotherapy-induced nausea and vomiting Neurokinin 1 receptor antagonist USA November No No rotavirus vaccine, Bharat Rotavac Bharat Biotech Rotavirus infection prophylaxis Immunostimulant India March No No sacubitril**** + valsartan Entresto Novartis Chronic heart failure Angiotensin II 1 antagonist, Membrane metallo endopeptidase inhibitor USA July No No safinamide mesylate Xadago Newron/Zambon Parkinson’s disease Monoamine oxidase B inhibitor, Sodium channel antagonist, Calcium channel antagonist, Glutamate release inhibitor, Dopamine reuptake inhibitor Germany May No No sebelipase alfa Kanuma Synageva BioPharma (Alexion) Lysosomal acid lipase deficiency Lysosomal acid lipase stimulant Germany October Yes Yes secukinumab Cosentyx Novartis Psoriasis & psoriatic arthritis Interleukin 17A antagonist Japan January Yes Yes talimogene laherparepvec Imlygic Amgen Melanoma Granulocyte macrophage colony stimulating factor agonist, Anticancer immunotherapy USA November No Yes trelagliptin Zafatek Takeda/Allergan Type 2 diabetes Dipeptidyl peptidase 4 (DPP IV) inhibitor, Insulin secretagogue Japan May No No vonoprazan fumarate Takecab Takeda/Otsuka Ulcer and oesophagitis Potassium-competitive acid antagonist Japan February No No 9-valent HPV vaccine, Merck Gardasil 9 Merck & Co Human papilloma virus infection prophylaxis Immunostimulant Canada April No No Source: Scrip Intelligence, Citeline’s Pharmaprojects *avibactam is the NAS here **ceftolozane sulfate is the NAS here ***lumacaftor is the NAS here ****sacubitril is the NAS here *****Dopamine D4 antagonist is the novel mechanism here ******FGF-2 and -4 tyrosine kinase inhibition are the novel mechanisms here ↕Some months may be approximations 12 March 18th 2016 @scripnews scripintelligence.com © Informa UK Ltd 2016 headline news Opdivo Reimbursement Rejected In Scotland Bristol-Myers Squibb’s skin cancer therapy, Opdivo (nivolumab), has been rejected for use on the Scottish National Health System – an unusual decision considering the drug’s recent approval for use in England and Wales. The Scottish Medicines Consortium issued guidance not recommending the use of Opdivo – a PD-1 immune checkpoint inhibitor, a new class of cancer medicines – as a monotherapy for the treatment of advanced (unresectable or metastatic) melanoma in adults. The health technology appraisal body said it was disappointed about returning a negative verdict, but said “weaknesses” in the health economic case presented by BMS led to “considerable uncertainty” about the drug’s cost-effectiveness. However, BMS’s product was accepted, uncharacteristically quickly, by the SMC’s neighbor NICE for use on the NHS in England and Wales in January this year. It is not uncommon for the two devolved HTAs in Britain to come to opposing verdicts for new products and in the past the groups have returned differing opinions on the use of a number of expensive new cancer therapies. Nevertheless, the SMC has usually been more flexible for novel oncology products, approving medicines that NICE has rejected. For example, in December 2014 the SMC reimbursed two cancer products that NICE had already turned down – Eli Lilly’s Alimta (pemetrexed)as a monotherapy for the maintenance treatment of locally advanced or metastatic non-small cell lung cancer; and Celgene’s Imnovid (pomalidomide) in combination with dexamethasone for the treatment of adult patients with relapsed and refractory multiple myeloma. Furthermore, in April 2015, Scotland gave the green light to three anticancers that England had at the time rejected – Ariad’s Iclusig (ponatinib), Boehringer Ingelheim’s Vargatef (nintedanib) and Bayer’s Stivarga (regorafenib). Some of these products have since been accepted for reimbursement by NICE. The assessment for Opdivo in Scotland also included views from a Patient and Clinician Engagement (PACE) meeting, but doctors’ opinions emphasizing the need for new therapies like Opdivo, which have fewer side effects and can be used in patients who don’t have BRAF mutations, were not able to sway the SMC. A spokesperson for the SMC told Scrip that BMS’s submission for Opdivo contained a complex economic model involving treatment naïve and pre-treated melanoma patients with more than one possible comparator. “There were a number of uncertainties in the analyses and some assumptions, for example around treatment duration, that the committee felt were unlikely to reflect clinical practice,” the SMC said. BMS said it presented the same evidence to both NICE and the SMC, including the same drug list price that NICE found costeffective. In England Opdivo costs £439 per 4ml vial and £1,097 per 10ml vial, excluding VAT and any local procurement discounts. NICE’s appraisal committee in January decided that the incremental cost effectiveness ratio for the drug, compared with BMS’ Yervoy (ipilimumab), Roche’s Zelboraf (vemurafenib) and Novartis’ Tafinlar (dabrafenib), would be less than £30,000 per quality adjusted life year gained. In Scotland BMS now has the option to submit further data analysis to the SMC for consideration. [email protected] SPONSORED BY CATEGORY SPONSORED BY HUYA BIOSCIENCE’S BEST NEW DRUG AWARD WINNER: NOVARTIS’S COSENTYX This human monoclonal antibody is the first and only approved IL-17A inhibitor for plaque psoriasis, offering an important new treatment option, and a better chance of achieving clear skin. The judges said: “IL-17A has been an interesting target in psoriasis and this drug has shown selective binding that has translated into excellent clinical activity. The superiority of Cosentyx (secukinumab) against two of the most widely used drugs is impressive and the long-term data confirm its potential to transform treatment.” “ Novartis is honored that Cosentyx has been named the Best New Drug of 2015. This award speaks to a turning point for psoriasis patients, as Cosentyx is the first and only approved treatment targeting the IL-17 pathway, which plays a key role in the development of plaque psoriasis. Nearly half of all psoriasis patients have not found relief from previously existing therapies with the condition seriously impacting their everyday lives, both physically and psychosocially. Cosentyx truly provides a better chance of achieving clear skin and improving the quality of life of psoriasis patients. © Informa UK Ltd 2016 @scripnews scripintelligence.com “ Vasant Narasimhan, Global Head of Development, Novartis Pharmaceuticals March 18th 2016 13 headline news A Life Sciences Fortuitous Opportunity: NASA’s Twins Study While the goal of the yearlong mission aboard the International Space Station (ISS) involving US astronaut Scott Kelly and his Russian counterpart cosmonaut Mikhail Kornienko, who both returned to Earth on March 2, was intended to examine the effects of microgravity on the human body with the aim of reducing the health risks on future crewmembers, NASA serendipitously fell into a fortuitous situation to study spaceflight at the molecular level, potentially providing the life sciences sector a wealth of data – an opportunity that may not come around again for quite some time, if at all. Kelly, of course, just happens to have an identical twin brother, Mark, who also is an astronaut – a situation never before seen at NASA or any other space agency. The idea of studying one twin in space and the other on the ground came about more by happenstance than a planned situation when Scott Kelly was selected for the ISS mission, said John Charles, chief scientist of NASA’s Human Research Program (HRP). Had anyone else been selected, “we wouldn’t be having this discussion” and there would be no Twins Study, Charles told Scrip. But once the suggestion was made in 2012 and the Kelly brothers accepted, there was a “very big flurry of activities,” and Charles quickly found some HRP funding and put together a research solicitation, getting 40 responses right away, with 10 principal investigators and their proposed projects ultimately selected. What surprised Charles, he said, was the fact that five of those 10 investigators had never before worked with NASA and previously never considered how the US space agency was relevant to their genetic research. “And those have now been some of the most enthusiastic participants,” he declared, although he added that most “everybody is enthusiastic when you’re on a spaceflight mission.” The twins experiment has allowed NASA to connect with “a whole new community of investigators who can give us new insights that we need to continue the work that we’re doing of mitigating the risks of astronauts of long-duration space flights beyond low-Earth orbit,” Charles said. Being able to include the Twins Study data in the efforts of the Precision Medicine Initiative, which is being led by the National Institutes of Health, could provide “great interest” for drug companies’ research and development, Roberts told Scrip. He said CASIS would like to work with pharmaceutical companies to replicate the Twins Study to perform experiments using models with identical mice or flat worms in precision medicine-type experiments with the goal of drug discovery and development. “You can perform a lot of the same tests to understand how they are responding to the microgravity environment with prolonged exposure to that environment over time,” Roberts said. He said he thought the Twins Study also could have implications for Obama’s and Vice President Joe Biden’s Cancer Moon Shot Initiative, given the examination of Scott Kelly’s long-term radiation exposure that will be examined over time from his year in space, which started on March 27, 2015. Precision Medicine The Experiments Even though it’s a very small cohort of two men, the Twins Study data could wind up playing a role in President Barack Obama’s Precision Medicine Initiative, he said. “That is one of the major reasons we embarked on this study is to understand exactly how we can use precision medicine Among the 10 Twin Study investigations is one being conducted by researchers from the University of California at San Diego (UCSD) and Dana-Farber/Harvard Cancer Center in Boston in conjunction with NASA’s cardiovascular and nutritional biochemistry labs to examine the metabolomic and genomic markers of 14 March 18th 2016 in making more efficient and effective plans for these long duration plans beyond the lowEarth orbit,” Charles said. Michael Roberts, deputy chief scientist at Center for the Advancement of Science in Space Inc. (CASIS), which manages the ISS US National Laboratory, said he’d like to see an astronaut cohort be part of the Precision Medicine Initiative, “because even though it’s a small sample size, you have a segment of the population that goes from being perfectly healthy to manifesting some aspects of disease as a result of their exposure to microgravity” – an environment whose effects on physiology can mimic the process of aging and some human conditions on Earth, like muscle atrophy and the loss of bone mineral density. CASIS looking to work with pharma to replicate the study and perform precision medicine-type experiments on identical mice or flat worms @scripnews scripintelligence.com atherosclerosis related to oxidative stress, inflammation and vascular function. Another group of researchers from NASA’s cardio and advanced projects labs have teamed with UCSD investigators in conducting a proteomic assessment of fluid shifts and the association with visual impairment and intracranial pressure. Researchers from Northwestern University, Rush University Medical Center and the University of Illinois in Chicago are exploring the astronaut brothers’ dietary differences and stressors to find out how both affect the organisms in their guts through a microbiome experiment involving metagenomic sequencing. Researchers at Colorado State University will be working with NASA investigators to assess whether spaceflight influences telomere length and telomerase activity, with the hopes of providing informative biological indicators of aging and age-related degenerative diseases, like cardiovascular disease and cancer. Investigators from Johns Hopkins University are measuring DNA methylation and chromatin at a genome-wide level in biological samples obtained from the Kelly brothers, with the aim of integrating epigenomic data with exposure to spaceflight conditions, looking for exposurelinked changes, and by comparison to the ground-based twin, determining whether those are transient or long-lived effects. They also are seeking to determine whether DNA mutations arise secondarily to those epigenetic changes. Researchers at Stanford University are studying how long-term space travel affects the immune system, examining how parameters of the immune system changes at baseline and after a seasonal flu vaccination. They are seeking to understand how the immune response to vaccination differs in the twins. Charles noted that because the Russian Soyuz that brought Kelly back to Earth on March 2 doesn’t have much extra room, his blood and urine samples remained up in space in a freezer on the ISS and are expected to be brought back on the return flight of the next SpaceX Dragon mission – a trip in which Eli Lilly & Co. is sending several experiments up to the space station next month. Charles said the Kelly brothers will be followed for at least the next nine months by one of the groups of investigators, with most of the other researchers wrapping up their studies in the next 60 days to six months. [email protected] © Informa UK Ltd 2016 headline news Pharma’s Space Frontier: Come On And Take A Free Ride Mr.Creative/shutterstock.com Space is waiting for you pharma. So come on and take a free ride – literally. Indeed, while NASA astronaut Scott Kelly, who returned to Earth on March 2, was up in space on the International Space Station (ISS) for the past year, with him were hundreds of biomedical experiments, many of which were intended to help researchers from drug companies, the US government and academic institutions solve the mysteries of human diseases. And the American taxpayers footed the bill – on average of about $7.4m per experiment – of getting that research from the ground to space and back, including the costs of operating the ISS US National Laboratory and crew time, explained Dr. Michael Roberts, deputy chief scientist at Center for the Advancement of Science in Space Inc. (CASIS). None of that $7.4m – an amount that can vary – is passed along to the experiment’s investigators, whether they’re private-sector firms, universities or non-NASA government agencies, like the National Institutes of Health, Roberts told Scrip. “It’s not part of what they have to come up with,” said Roberts, whose organization was selected by NASA in 2011 to manage the ISS US National Lab, which was created by Congress in 2005 as a way to open up and maximize the research opportunities of the space environment. Biopharmaceutical companies, academic institutions or non-NASA government agencies, however, are responsible for covering the costs of getting their project developed and ready for flight and the supplies needed for the investigation. But some of those costs may be covered through CASIS challenge grants or federal agency funds, Roberts said. Companies like Merck & Co. Inc., Eli Lilly & Co. and Novartis AG already have sent experiments, or soon will, up to the ISS, he said. Roberts pointed out that microgravity – whose effects on physiology can mimic the process of aging and some diseases in © Informa UK Ltd 2016 humans on Earth, including muscle atrophy and the loss of bone mineral density – provides a unique research environment. Historically, microgravity research that went up on the space shuttle was essentially “oneand-done” types of experiments, lasting only days or weeks, he said. But now with the ISS, which is orbiting 240 miles above Earth, experiments in space can last for months, Roberts said. Merck Merck’s research on the ISS has focused primarily on protein crystal growth experiments of investigational monoclonal antibodies using microgravity, Roberts said. “Drug companies utilize the environment in microgravity to grow these large crystals, bring them back to Earth, take high resolution x-ray or neutron diffraction images of them,” he said. “From that, they can derive information to better target their drugs so that they have fewer side effects.” Drug companies can take their science and technology into space and accelerate the pace of their discoveries Roberts said CASIS also has had some discussions with Merck about model organisms and testing of some of the experimental therapeutics agents in the company’s pipeline for potential future missions. Novartis Novartis already has flown two drug research missions to the ISS, which focused on R&D of products to prevent muscle loss and combat age-related weakening of muscles, Roberts said. “Many societies are aging and there’s a great interest in looking at ways to maintain muscle mass and slow the weakening of bones,” he said. Novartis’ research was included in the September 2014 “Rodent Research-1 (RR1)” mission to validate the ISS Rodent Research Facility, which includes modules for transporting rodents to and from the space station and units to handle and house the rodents, Robert said. The Rodent Research Hardware System was designed to allow rodents to spend up to six months in space, he explained. “That’s a quarter of their natural life span,” which is the “equivalent of doing a human study @scripnews scripintelligence.com where you looked at someone for 25-30 years,” Roberts said, noting that previously, experiments could be done for only up to 60 days. The Novartis experiment included five wildtype mice and five transgenic “knock-out” mice that lacked the MuRF1 gene, which is believed to trigger muscle wasting by degrading muscle protein. The experiment was aimed at revealing new molecular targets for treating skeletal muscle atrophy. In the follow-up RR-2 mission, Novartis researchers monitored the effects of the space environment on the musculoskeletal and neurological systems, with the idea of discovering new molecular targets that can facilitate the development of novel therapeutics for the treatment of muscle and bone-related diseases. The mice in RR-2 also were exposed to spaceflight for two to eight weeks to determine the progression of muscle wasting over time in the mice. Lilly Lilly has a very broad-based research approach with several experiments, including some focusing on protein crystal growth on drug formulation, expected to go up to the ISS next month on the SpaceX CRS-8, Roberts said. “They’re actually interested in looking at the physical structure of the drugs they have in development,” he said. Roberts said Lilly also has a rodent research experiment that’s looking at a drug in the firm’s pipeline intended to prevent muscle loss. With Lilly’s experiments, 20 mice will be launched to the ISS, he said. An Opportunity To Accelerate R&D For the most part, the experiments from drug makers involving R&D of medicines going up to the ISS is for diseases that affect large populations, like musculoskeletal disease and metabolic disorders, Roberts said. He emphasized CASIS does not set the research agenda. “We’re simply responding to what the principal investigators identify as important areas of research,” Roberts said. What CASIS does, he said, is aid the US in ensuring the ISS US National Laboratory, which provides access to a wide range of hardware and R&D-enabling technologies, is” most effectively utilized as a research environment.” Drug companies and others involved in biomedical R&D have an opportunity to “take their science and technology development up into space and accelerate the pace of their discoveries,” Roberts declared. [email protected] March 18th 2016 15 R&D bites R&D Bites All Eyes On Sun’s Ophthalmology US NDA Sun Pharmaceutical Industries’ ophthalmology NDA BromSite (0.075% bromfenac), comes up for US regulatory approval next month, setting the stage for a potential push in a segment where the Indian firm has been prepping for a ramp up. Bromsite, which has been assigned a Prescription Drug User Fee Act (PDUFA) action date of April 10, is the firm’s first ophthalmology NDA coming up for approval following the merger of Insite Vision with Sun. Last year, Sun acquired Insite edging out previous bidder and Canadian biotech QLT Inc; the acquisition was completed in November 2015, with InSite becoming an indirect wholly owned arm of Sun. InSite is seeking FDA approval for BromSite in the treatment of inflammation and prevention of ocular pain in the post-cataract surgery setting. BromSite combines a low dose of bromfenac with InSite’s DuraSite platform, a synthetic polymer-based formulation designed to extend the time of a drug in the eye relative to conventional topical therapies. BromSite has a patent life extending to August 2029, Insite said previously. Scrip affiliate Sagient Research’s BioMedTracker has placed the likelihood of BromSite’s approval at 83%, which is 4% above the average probability of FDA approval for the specified disease group based on the historical performance of medicines in the same development phase, and expects the PDUFA date to occur on April 8 [April 10 falls on a Sunday]. Bromsite’s NDA submission was based upon two Phase III trials that were conducted in over 500 patients. Imbruvica Boosts CLL Lead AbbVie Inc. and Johnson & Johnson’s BTK inhibitor Imbruvica (ibrutinib) has reinforced its lead position in the chronic lymphocytic leukemia market with a first-line indication from FDA. FDA approval of a supplemental new drug application (sNDA) for Imbruvica (ibrutinib) for first-line use in patients with chronic lymphocytic leukemia, announced March 4, gives the Bruton’s tyrosine kinase inhibitor from J&J (Janssen Biotech Inc.) and AbbVie (Pharmacyclics Inc.) the broadest label of the new generation of targeted therapies for CLL. Imbruvica is already a blockbuster drug, topping $1bn in 2015 sales following its 2014 approvals, initially for CLL patients who have received at least one prior therapy and then for CLL patients with a 17p genetic deletion. It is a first-in-class, oral, once-daily therapy that inhibits the Bruton’s tyrosine kinase protein, a key signalling molecule in the B-cell receptor signalling complex that plays an important role in the survival and 16 March 18th 2016 spread of malignant B cells. Imbruvica was one of the first medicines to receive FDA approval via the breakthrough therapy designation pathway. Optimism over the drug’s prospects induced AbbVie to buy Pharmacyclics, which developed the medicine with J&J, for $21bn in 2015. Epizyme Plans: Accelerated Tazemetostat Approval A year after losing its big pharma partner, epigenetic cancer therapy-focused Epizyme Inc. used its quarterly earnings call on March 9 to outline a four-step strategy for becoming a commercial company, expanding the potential uses for lead candidate tazemetostat (EPZ-6438, aka taz) and bringing at least three novel proprietary cancer candidates into clinical development by 2020. Central to this strategy is a plan to seek expedited approval of tazemetostat based on findings from Phase II studies in various forms of non-Hodgkin lymphoma (NHL) and in rare genetically defined solid tumors. CEO Robert Bazemore outlined a plan by which Epizyme will seek approval for varying indications based on data from individual arms of the two Phase II studies. Bazemore, a lymphoma survivor, joined the Cambridge, Massachusetts-based biotech last September after leaving Synageva BioPharma Corp., where he was the chief operating officer. The CEO said in an interview prior to Epizyme’s earnings call that tazemetostat could present a “platform-within-a-product opportunity.” The company regained almost all rights to the EZH2 inhibitor last year by paying Eisai Co. Ltd., its partner since 2011, $40m up front to largely unravel the collaboration around tazemetostat. Eisai retains Japanese rights to the compound, and is responsible for 100% of development costs in that market. Celldex Rintega Fails In Phase III Celldex Therapeutics Inc.’s stock was cut by more than half to $3.79 per share after the company revealed that it would discontinue the Phase III clinical trial known as ACT IV for the cancer vaccine Rintega (rindopepimut) based on an interim assessment of survival for glioblastoma (GBM) patients. Hampton, New Jersey-based Celldex closed down 53.7% on March 7 following the disclosure that median overall survival was 20.4 months in the Rintega arm of ACT IV versus 21.1 months in the control group for patients with newly diagnosed EGFRvIII-positive glioblastoma and minimal residual disease. The trial’s Data Safety and Monitoring Board (DSMB) determined that Celldex’s lead product candidate was unlikely to meet the study’s primary endpoint based on the interim survival data. The company said Rintega’s performance in Phase III was consistent with past Phase II studies, but the control arm in ACT IV performed significantly better than expected. As a result, Celldex “does not anticipate incurring substantial additional costs related to Rintega at this time,” the company said, meaning that it will discontinue development of the cancer vaccine in all indications. @scripnews scripintelligence.com Imbruvica Leads Sea Change In CLL Landscape Johnson & Johnson/AbbVie Inc. ‘s Imbruvica (ibrutinib) has rapidly established itself as standard of care in relapsed/refractory chronic lymphocytic leukaemia and will increasingly move into the first-line setting following its recent approval by the FDA for that use in patients with CLL, analysts say. That accolade was won after Imbruvica showed good efficacy in first-line CLL without the need for a chemotherapy backbone. Whether the BTK inhibitor will maintain that CLL lead is unclear, as there is a growing number of new drugs to treat the disease, which is the most widespread form of adult leukemia. Still, the innovative dynamism around the condition looks set to expand the CLL market enormously, largely because the orally administered drugs will remove reliance on chemo, and new drug classes will be administered more frequently than with previous products. Bass Wins Review Of Ampyra Patents Shares of Acorda Therapeutics Inc. tumbled 10.7% on March 11 after word came late in the day the Patent Trial and Appeal Board (PTAB) of the US Patent & Trademark Office agreed to review four of the firm’s patents on its FDA-approved multiple sclerosis drug Ampyra (dalfampridine) in response to so-called inter partes review (IPR) petitions filed by hedge fund manager Kyle Bass through his Coalition for Affordable Drugs. The stock closed the day at $32, down $2.71, or 7.8%. But Bass failed to win over the PTAB in seeking a review of a US patent held by Roche AG on Enbrel (etanercept), a tumor necrosis factor alpha marketed in the US by Amgen Inc., increasing the odds the drug will remain patent protected well into the late 2020s. Sanofi/Regeneron’s Sarilumab Stiff Competition Regeneron/Sanofi’s IL-6 inhibitor sarilumab has beaten AbbVie’s Humira (adalimumab) in a head to head trial. Top line Phase III results show sarilumab more significantly improved the signs and symptoms of rheumatoid arthritis after 24 weeks of treatment than blockbusting Humira did. The data will help differentiate the drug, but competition will remain fierce in the RA space, say analysts. “This is the first time an IL-6 receptor blocker delivered subcutaneously has demonstrated superiority over adalimumab monotherapy in RA,” said Janet van Adelsberg, Regeneron’s senior director of clinical sciences, immunology and inflammation. Sanofi CEO Olivier Brandicourt last year said that sarilumab was one of six key products that would generate combined peak sales of up to €14bn. The drug is expected to launch by the end of the year in the US, where it is undergoing regulatory review. Datamonitor Healthcare analyst Christina Vasiliou expects that Sanofi/Regeneron will try and position the drug early in the rheumatoid arthritis treatment pathway after patients fail on methotrexate. However, there will be a lot of competition to beat. © Informa UK Ltd 2016 headline news $1.14bn For Xtandi Royalties: How UCLA Cut Risk, Diversified Its Assets With no shortage of offers to buy its royalties from the prostate cancer drug Xtandi (enzalutamide), the University of California, Los Angeles (UCLA) recently decided to reduce its risk and diversify its holdings by selling the Xtandi revenue stream, accepting a bid from Royalty Pharma for $1.14bn. Privately-held Royalty Pharma kept in touch with UCLA while Xtandi patent licensee Medivation Inc. and its partner Astellas Pharma Inc. developed and commercialized the drug for later-stage and eventually frontline treatment of metastatic castrate-resistant prostate cancer (mCRPC). The investment firm’s tenacity paid off: It beat out four other bidders in a competitive process to buy the Xtandi royalties, repeating its history of eyepopping deals with nonprofit research groups. Royalty Pharma paid $3.3bn in November 2014 to acquire the Cystic Fibrosis Foundation (CFF) royalty stream from sales of Kalydeco (ivacaftor), the ground-breaking cystic fibrosis drug developed by Vertex Pharmaceuticals Inc. with research funding from CFF. Executives from the New York-based royalty acquirer expect to negotiate more transactions in the future with universities and patient advocacy groups as those entities get more creative about financing and benefitting from their investments in new drugs. Many Offers, Great Possibilities UCLA actually owns just 43.875% of the royalty interest that was sold to Royalty Pharma and its share of the transaction proceeds is $520m. The other 56.125% will be shared by the Howard Hughes Medical Institute along with the UCLA and Howard Hughes scientists who discovered Xtandi. The inventors get the bulk of the remaining proceeds, since the University of California (UC) system’s patent policy gives about 35% of royalty proceeds to the inventors – roughly $400m. The Royalty Pharma deal was negotiated by Westwood Technology Transfer, a nonprofit company that UCLA established in 2014 to oversee its intellectual property portfolio and maximize returns from technology invented by university researchers. Westwood supports the UC system’s push to encourage entrepreneurship among its students and faculty. The UC Board of Regents approved a $250m venture capital fund called UC Ventures in 2014 to invest in companies that spin out of the university system’s 10 campuses, five medical centers, three affiliated national laboratories and 20 technology incubators. 18 March 18th 2016 Westwood board member and Los Angeles-based venture capital investor Tom Unterman told Scrip that the Xtandi royalty stream is “a very visible piece of intellectual property, because it’s so large compared to what universities and research institutions typically own. We have been approached over the years about selling it, but this is not something the university has done actively before. We saw the volume of the incoming calls and thought we should consider it.” UCLA engaged Goldman Sachs as a financial advisor to analyze whether the university should monetize the Xtandi royalty stream, determine the asset’s value, solicit bids and broker a transaction; five bids were received in all. Legal advisors included Gibson Dunn for UCLA, Goodwin Procter for Royalty Pharma and Covington & Burling LLP for the inventors. Heyman Biotech LLC was a strategic advisor for the inventors, who include UCLA chemistry and biochemistry professor Michael Jung and Charles Sawyers, a doctor at Memorial Sloan Kettering Cancer Center in New York. Sawyers was an investigator at Howard Hughes while teaching medicine, urology and pharmacology at UCLA when the Xtandi-related intellectual property was created. Sawyers and his team at Howard Hughes identified why patients failed to respond to first-generation prostate cancer therapies and collaborated with Jung’s lab at UCLA on the discovery of the second-generation androgen receptor inhibitor Xtandi. Medivation licensed the chemical compound’s patent, which expires in 2027, in 2005. The San Franciscobased biotech company allied with Astellas in 2009 for global development of Xtandi and the partners won their first US approval for the drug in 2012. Xtandi is approved in the US for both preand post-chemotherapy treatment of men with mCRPC and recent clinical trials support the drug’s use early in the treatment of metastatic patients. Astellas reported $1.9bn in global Xtandi sales for 2015 and Medivation collected $695.5m of that revenue in 2015 versus $389.4m in 2014. UCLA has earned $2.8m in aggregate milestone fees under its licensing agreement with Medivation and the university earns an annual maintenance fee plus 10% of all sublicensing income from the company’s agreement with Astellas and a 4% royalty on global net sales of Xtandi. Astellas and Medivation share the royalty obligation equally for US sales, but Astellas pays royalties to UCLA based on ex-US sales. @scripnews scripintelligence.com Litigation is pending between UCLA and Medivation to determine whether the university is getting its fair share. UCLA sued Medivation in 2014 in a dispute over the operating profits that the company receives from Astellas and whether it qualifies as sublicensing income under Medivation’s license agreement with the university. The parties are awaiting a trial court date. UCLA’s Risk Management, Diversification Strategy Unterman said there were two key reasons why UCLA chose to sell its royalties to Royalty Pharma: 1) risk management in the event that a future competitor should steal significant sales from Xtandi and 2) diversification of revenue streams that fund research at the university. “The drug is on a strong growth trajectory, but cancer research is moving fast. Strong competitors could come to the market,” Unterman said. “If we could get the money now, we could assure a steady stream of money for years to come.” UCLA will hold its $540m share of the proceeds in a broadly diversified investment portfolio managed by the UC system’s chief investment officer. The investment portfolio is expected to generate $60m in unrestricted funding [annually] for UCLA through 2027. Most of the money will fund research, but the university expects to set aside some cash for scholarships and fellowships. So will UCLA via Westwood Technology Transfer cash in additional pharmaceutical royalty streams to fund research and scholarships at the university? It’s possible. “We do have other therapies that have been developed at UCLA that we, over time, would consider doing similar transactions for, but nothing in the next two or three years or of this scale,” Unterman said, noting that most royalty transactions involving research institutions total $40m to $50m. He said UCLA scientists sometimes are approached by investors that want to buy their and the university’s royalty stream, but UCLA or the UC system usually are approached first. Royalty Pharma vice president of investor relations and public affairs Alexander von Perfall said the firm has been interested in the Xtandi royalties since 2010 when it began tracking the drug’s clinical trials and regulatory progress. Read full story at: http://bit.ly/1YVWpjL [email protected] © Informa UK Ltd 2016 headline news Using Patient Biology To Shepherd Clinical Trials “Pharma is throwing the term precision medicine around but it still doesn’t really understand what it will take to achieve it,” according to the world’s first chief precision medicine officer, BERG Health’s Michael Kiebish. BERG is combining artificial intelligence and systems biology to analyze stacks of biological data. According to Kiebish, there needs to be a lot more collaboration: governments and pharmaceutical companies need to open up their data repositories, there needs to be better infrastructure to cope with the volume of electronic data becoming available, and we need to develop better analytical tools, “and not just genomics [tools], but adaptive ‘omics’ like metabolomics, proteomics, lipidomics.” The data repositories and analytics need to be built up and then we have to allow people to “dig into that data.” BERG was initially founded to develop an oncology asset, but quickly realized that “the use of artificial intelligence, population diversity and ‘omics’ could be used to develop biologics for lots of diseases.” “There were lots of pieces missing in the drug development cycle. First and foremost, the patient,” he told Scrip. Platform All of BERG’s research and clinical trials employ its Interrogative Biology platform. This “back to biology approach” is completely different from the traditional pharma approach to drug discovery through chemical libraries and hypotheses. BERG collects patient samples in both diseased and healthy states which are processed by high throughput mass spectrometer workflow. Biological activity is analyzed through adaptive ‘omics’. “We also look at mitochondrial function, oxidative states and ATP production to examine how the cells are functioning.” The process produces trillions of data points from a single sample. The data is then combined with patient clinical information and analyzed by BERG’s artificial intelligence machine learning analytics program. This combination of systems biology and artificial intelligence constitutes the Interrogative Biology platform. BERG builds its drugs in molecules and targets based on population diversity to “get into the core biological causes of disease,” says Kiebish. “Patients are a part of the drug discovery process from the beginning. Patient biology is shepherding the clinical trial © Informa UK Ltd 2016 process.” And that is the definition of precision medicine, he claims. However, before that can truly become a reality, there has to be education. Governments and pharma must make a “social contract” with patients “so there is understanding that it will take time, it is still your data, and it will be used for the greater good.” Kiebish joined BERG in 2012 as vice president of systems medicine before being appointed to his new role. Objectives “My near term objectives are to try and evolve the bioanalytics and informatics platforms to be quicker, more economical, to engage more in the clinical trial process. “In the mid term, I want to be establishing collaborations with the big analytical/ informatics hardware companies, and hospital insurance companies. “In the long term I will be keeping my eye on the prize. Developing those proof points for oncology, not just for our drug, but through companion diagnostics for other drugs. We want to help develop new pharma economic models to overcome outcome based reimbursement, the patent cliff.” BERG was founded by Silicon Valley billionaire Carl Berg, so doesn’t follow the model of a traditional venture capital backed biotech. “We want to evolve into a lean, adaptive, healthcare solutions company where we build diagnostics globally, nurture our pipeline, understand the whole landscape of combination therapies for different diseases based on real time biology, and collaborate heavily with big pharma and IT companies. We want to position patients to have real time access to their health, through connectivity via wearable devices, empowering patient knowledge.” Kiebish says BERG has “lots of kettles boiling” regarding collaboration discussions but pharma “likes to see companies prove themselves in stages” and hence BERG is focusing on its pipeline. Pipeline BERG has two therapeutic products in earlystage clinical testing. BPM31510 is in Phase I/II trials as a monotherapy for squamous cell carcinoma and as a monotherapy and a combination therapy for advanced refractory solid tumors. BPM31543 is in Phase I trials as a topical treatment for chemotherapy-related alopecia. “2016 will be an interesting year for our pipeline,” says Kiebish. [email protected] @scripnews scripintelligence.com Has FDA Lost Its Grip? The Amarin Deal While the FDA was insistent its settlement with Amarin Corp. plc, which a federal district judge has signed off on, only applies to that company, in which the agency has agreed to not stand in the way of the firm sharing “truthful and nonmisleading” information about certain unapproved uses of its fish-oil pill Vascepa (icosapent ethyl), the deal, nonetheless, shows US regulators can be flexible, or at least, when they’re backed into a corner. Indeed, to the FDA, the deal with Amarin likely was the choice of the lesser of two evils – settle the legal dispute and let the company have its way, although with input from the agency, or wind up in an appeal, which had the chance of going badly for regulators, resulting in them losing their grip completely over off-label promotional activities. It was clear the FDA didn’t want to risk the possibility of the latter situation happening when it agreed this past August to explore a potential settlement with Amarin, which a few weeks earlier had been granted a preliminary injunction by Judge Paul Engelmayer of the U.S. District Court for the Southern District of New York, who said the company could share certain “truthful and non-misleading” information about Vascepa “without incurring liability for misbranding” – a verdict that was a major blow to the US regulatory agency. The FDA already had walked away from appealing its loss in an earlier decision, in which the US Court of Appeals for the Second Circuit in Manhattan had overturned the October 2008 conviction of a New York sales representative, Alfred Caronia, for conspiracy to introduce a misbranded drug into interstate commerce related to discussions he had with doctors about unapproved uses for Jazz Pharmaceuticals Inc.’s narcolepsy drug Xyrem (sodium oxybate). In that case, the Second Circuit ruled that “truthful” off-label promotion of US approved prescription drugs is not criminal activity and is protected speech under the First Amendment of the US Constitution. The FDA this past December also reached an agreement in another free-speech lawsuit with Pacira Pharmaceuticals Inc. Read full story at: http://bit.ly/1WekIHY [email protected] March 18th 2016 19 business bulletin/policy & regulation briefs Business Bulletin Patient Groups Rank ViiV Top Of Pharma League Table The latest PatientView report on the corporate reputation of pharma from the perspective of patient groups has been published. In a survey of pharma’s corporate reputation, ViiV Healthcare retained the overall top spot, with AbbVie a close second. Of the 48 companies that patient groups commented on, the bottom ranked companies were Valeant and Hospira. 2015 was a watershed year for pharma’s investment in relationships with patient groups and other patient-centric activities. This was reflected in pharma’s best standing in terms of corporate reputation since the survey was first conducted in 2011. The survey questioned 1,075 patient groups from 72 countries on six indicators of corporate reputation: patientcentricity; patient information; patient safety; useful products; transparency; integrity. The report also questioned 11 pharma companies on their activities in patient centricity and patient-group relations. Aprea Banks $51m Series B Aprea AB, which is targeting the “holy grail” of anticancer research – the p53 tumor suppressor protein – and has the former head of oncology drug discovery of Bristol-Myers Squibb as its executive chair, has raised SEK 437m ($51m) in a series B financing. The transaction sees former majority shareholder Karolinska Development drop its stake from 62% to around 19% via the conversion of SEK 60m of outstanding loans. The deal marks a year since Karolinska Development’s CEO Jim Van heusden took over the top job and was given the task of changing its strategy in a bid to change its fortunes. He has been busy spinning out portfolio companies such as Pharmanest and XSpray Microparticles to sharpen Karolinska’s focus, and also attract outside investment into the companies it retains. Spark Acquires Irish Ophthalmology Partner Philadelphia-based Spark Therapeutics has acquired private, Irish gene therapy company, Genable Technologies, for $6m in cash and 265,000 shares of Spark common stock. Spark and Genable have been partners since 2014 on the development of RhoNova, a drug targeting rhodopsin-linked autosomal dominant retinitis pigmentosa (RHOadRP), a form of inherited retinal disease (IRD). Through the acquisition Spark will gain full ownership of RhoNova, which is currently being explored in preclinical studies for RHO-adRP, a condition that leads to visual impairment and in the most severe cases to blindness. Using an adeno-associated virus (AAV) vector developed and manufactured at Spark, RhoNova, which has been granted orphan drug designations in the US and Europe, is designed to both suppress the expression of a faulty gene and deliver normal copies of the RHO gene to restore normal expression. Policy & Regulation Briefs Indian Court Rejects Whistle-Blower’s Suit India’s apex court has declined to admit Ranbaxy whistle-blower Dinesh Thakur’s petitions that sought “urgent intervention” to improve India’s drug regulatory standards and challenged the constitutionality of certain rules under the Drugs and Cosmetics Rules 1945. Thakur had moved the Supreme Court against India’s health ministry, the Central Drugs Standard Control Organization (CDSCO) and the Drugs Consultative Committee, among others, seeking a series of actions to improve the drug regulatory system in India, including “binding guidelines” for the recall of drugs that are not of standard quality, adulterated, spurious or misbranded. On March 11, the Supreme Court took up Thakur’s much publicized plea, but is said to have questioned the whistle-blower’s locus standi and apparently indicated that it had no time for publicity efforts by public activists. 20 March 18th 2016 No 12 Years Exclusivity In Biologics NDA-To-BLA Switch Even though the Biologics Price Competition and Innovation Act (BPCIA) – the law that permitted the FDA to approve biosimilars – has been in place since March 2010, it’s taken the agency six years to figure out how to implement the so-called “deemed to be a license” provision, which sets a deadline for regulators to stop approving biologics through certain pathways created under the Food, Drug and Cosmetic Act (FDCA). In a new draft guidance document posted online on March 11, the FDA laid out a new plan for moving protein products, like insulin and insulin analogues, human growth hormone, pancreatic enzymes and follitropin, which have been approved for the US market through the FDCA pathways – new drug applications (NDAs), abbreviated new drug applications (ANDAs) or 505(b)(2) NDAs – to the biologics license application (BLA) process. Round 2 ‘Innovation’ Bills Adopted A second set of bills intended to overhaul the US biomedical enterprise, aimed at accelerating the discovery, development and approval processes for medical products, mostly had smooth sailing through the Senate Health, Education, Labor and @scripnews scripintelligence.com TiGenix Raises $26m, Fistula Therapy Continues To Fizz The European leader in investigational allogeneic stem cell therapies, Belgium’s TiGenix NV, has turned its back for now on raising funds on Nasdaq, and has instead raised gross proceeds of €23.75m ($26.2m) in a private placement on Euronext Brussels completed Mar. 10, just days after it described the benefits of its lead product Cx601 at 52 weeks after administration, a longer period than previously reported. TiGenix has been publicly listed on Euronext Brussels since 2007 and was planning to raise funding in the US, but reported Mar. 9 that unfavorable capital market conditions meant it had not yet launched an initial public offering of American Depository Shares (ADSs). Xoma Kills Gevokizumab Xoma Inc. finally stopped all development for gevokizumab, shifting its entire focus to endocrine diseases and cutting even more jobs, but the company somehow expects to sell the asset to another party after racking up another Phase III clinical trial failure. Berkeley, California-based Xoma’s share price flirted with the $1 range on March 10 as investors responded to the company’s 2015 earnings report and corporate update, which was issued after the stock market closed on March 9. But Xoma ultimately ended the day just shy of $1 per share – up 8.1% at $0.96 – after the company hammered the final nail in gevokizumab’s coffin and said it would use its remaining cash to advance three development programs in various rare endocrine diseases. Pensions (HELP) Committee on March 9, with only a somewhat brief debate over how the measures will be funded holding up the votes for a short time. The seven bills, which were a hodge-podge of measures that would add new responsibilities to the FDA and the National Institutes of Health (NIH), are intended to eventually be wrapped up into a package that would serve as a companion to the House-passed 21st Century Cures Act. Valeant ‘Puzzled’ Over Accusations Valeant Pharmaceuticals International Inc. on March 10 said it was “surprised and puzzled” by the accusations from the Republican and Democratic heads of the House Oversight and Government Reform Committee that the firm was withholding documents. “We have produced more than 78,000 pages of documents,” said Washington lawyer Robert Kelner, a partner at Covington & Burling, who is representing Valeant. Kelner said it was “standard procedure” for any company responding to a congressional investigation and engaged in litigation to decline to produce documents covered by the “attorney-client privilege,” and said his firm was preparing a log for the Oversight Committee detailing what documents were being withheld under that privilege. © Informa UK Ltd 2016 expert view Can Premium-Priced Trulicity Prickle Victoza In India? Eli Lilly’s once-weekly diabetes therapy Trulicity (dulaglutide) appears to have made its Indian debut priced at a premium compared with certain Western markets –an indication that some innovator firms are less likely to consider major pricing flexibilities in first-wave markets for new products, even if these are emerging economies. India is among the first few countries in the world and the third Asian market after the UAE and Japan where Trulicity has been rolled out and the glucagon-like peptide-1 (GLP-1) receptor agonist has been priced at INR2,499 (£26) for a week, translating into an annual cost of around INR129,948 (£1354.5). In contrast, the annual cost in the UK of dulaglutide 1.5mg or 0.75mg once weekly is £1,182.35, as per details in NICE’s evidence summary for the product in June 2015, though an out-of-pocket market like India may not be strictly comparable with reimbursed markets like the UK. The exact impact of currency fluctuations on pricing was not immediately clear. Asked about the pricing approach in India and the premium compared with markets like the UK, Lilly said that it believes Trulicity’s price reflects both the “current market and competitive realities” while still allowing this important class to grow as it continues to serve more patients. “Every market is different in regards to pricing, access and reimbursement. Lilly offers Trulicity at a price which we believe is reflective of what the product offers, including proven efficacy, safety and patient-friendly administration,” Lilly told Scrip. One industry expert told Scrip that Lilly’s price point was a reflection of how the first wave of markets launch at “approximately the US price,” while tiered-pricing or other such flexibilities come in slightly later. “India is among the first wave markets to launch which is an acknowledgement by Lilly of India being the diabetes capital of the world. It’s a market that they would launch earlier rather than later,” the expert with a foreign firm said. India has more than 60m people living with diabetes, while 77.2m Indians are seen as pre-diabetic (impaired fasting glucose and/or impaired glucose tolerance). The expert, though, said that India continues to be a volume driven market and in the absence of insurance cover and patients paying out of pocket, Lilly will probably not see “really big volumes” unless it drops price. “However, given the nature of the product (once weekly), Lilly’s strategy could be a ‘value capture’ one too since it may target a smaller © Informa UK Ltd 2016 patient population than its other traditional insulins,” the expert told Scrip. Foreign firms have deployed a number of pricing approaches in India: Novo Nordisk’s once-daily basal insulin therapy Tresiba (insulin degludec) had some years ago made a similar premium debut, positioning itself at the top end of the private market. It had a strong run with an estimated 6,000 patients prescribed Tresiba in India within just two months of launch. In contrast Janssen launched its selective sodium glucose co-transporter 2 (SGLT2) inhibitor Invokana (canagliflozin) for type 2 diabetes in India at a fraction of the product’s US cost sticking with its “commitment” of offering India-specific pricing for its products as far as possible. Ditto for AstraZeneca’s Forxiga (dapaglifozin) that was priced 75% lower in India as compared with developed markets. Competition Some experts appear to give Trulicity a fair chance of making a dent in India, premium price approach notwithstanding. Ripple Mehta, senior consultant at MP Advisors, an Indian strategic business advisory firm, told Scrip that Trulicity will be a drug of choice for patients uncontrolled with two or three oral antidiabetics and are obese and need to start insulin. “The high price makes it a treatment of choice for rich, obese diabetics,” Mehta said, adding that she expects the product to take market share from Novo Nordisk’s Victoza (liraglutide), which is administered once daily. Victoza continues to be very successful, but has lost some market share to other GLP-1 agonists, including Trulicity, internationally. Novo Nordisk’s Victoza is available as a 6mg per ml solution for injection in a pre-filled pen. One pre-filled pen contains 18mg liraglutide in 3ml that costs INR4,840. Novo Nordisk, however, told Scrip that based on its interactions with prescribers, most of the patients in India are prescribed 0.6mg–1.2mg. “The weekly cost of Victoza is lesser than the newly launched molecule dulaglutide for most patients in India. For a 0.6mg dose, Victoza is economical by around INR1,370 per week (vis-à-vis dulaglutide) and for the 1.2mg dose, Victoza is economical by INR240 per week,” Novo Nordisk told Scrip. For all patients the starting dose is 0.6mg liraglutide daily; patients are expected to benefit by increasing the dose to 1.2mg and further to 1.8mg based on the clinical response, though a daily dose higher than 1.8mg is not recommended. @scripnews scripintelligence.com Mehta believes that Trulicity may also be able to wean away some market from SGLT2 inhibitors like Forxiga and Jardiance (empagliflozin) largely on account of the latter’s side effect profile. “Long term use of SGLT2 inhibitors needs close monitoring. Trulicity may fetch some market from this class of drugs due to its once weekly convenience of use, with weight loss/ highHbA1c reduction benefit despite being an injectable. “ Mehta also added that Victoza’s positive cardiovascular outcomes data from the LEADER trial announced recently, increases the possibility of broader uptake of the GLP-1 class in the early armamentarium of treating Type 2 diabetes replacing new oral combo medications. On March 4, Novo Nordisk announced top-line results from the LEADER trial, indicating that Victoza significantly reduces the risk of major adverse cardiovascular events. Trulicity received US FDA approval in September 2014 and EU approval in November that year. It comes in an easy to use, single-dose pen that does not require mixing or measuring and can be administered at any time of the day, independent of meals. Lilly India’s medical director, Tarun Puri, said that GLP-1 agonist class provides several benefits including a proven efficacy in controlling blood sugar levels with a lower risk of hypoglycemia. “It might even help patients reduce a little weight,” a company statement quoting Puri said. The Indian diabetes market is valued at around INR78.17bn ($1.16bn) and growing at 22.7%, as per moving annual total (MAT) data for January 2016 from AIOCD AWACS, a market research agency that tracks retail sales. While Lilly did not immediately provide details on Indian studies for Trulicity, at the time of recommending the product for marketing authorization in late 2014, an Indian Subject Expert Committee (SEC) suggested that Lilly conduct a “structured” PMS [post marketing surveillance] study. “The study protocol of the same is to be submitted to DCGI [Drugs Controller General of India] office before marketing the drug in the country,” the SEC (metabolism and endocrinology) then said. SECs advise the Indian regulator on trialrelated permissions as part of a layered approval process, India currently follows a three-tier review process for clinical trials, under which applications are initially evaluated by specialized SECs. [email protected] March 18th 2016 21 stockwatch Pharmaceutical Fight Club Viktor Gladkov/shutterstock.com Last week was a hard week for life science stocks comprising three down days in the middle of the week that made me wonder about early retirement followed by a strong enough recovery on Friday to entice me back into the office on Monday. Even if we are close to a bottom if not a recovery in biotechnology and pharmaceutical share prices, it doesn’t help the sector ambiance that everyone seemed to be fighting each other last week. We are in the long tail of fourth-quarter earnings season and by now most of the reports are by loss-making companies. Amongst them are all three of those that developed the most recently approved medicines to treat obesity. Orexigen Therapeutics Inc. reported a paltry $2.6m in quarterly royalties from its partner Takeda Pharmaceutical Company Limited in respect of sales of Contrave (naltrexone/ bupropion), now in its second year on the market. Competitor Arena Pharmaceuticals Inc. reported only $3.9m in quarterly royalties from its partner Astellas Pharma Inc. in respect of sales of Belviq (lorcaserin), which, as the analysts from JP Morgan and Piper Jaffray both highlighted, lost 16% in market share last quarter. The analysts from JP Morgan (under) stated that “overall obesity [was] not meeting growth expectations” while those from Piper Jaffray cut their share price target on Orexigen, noting that their estimates on its profitability were based on growing revenues. By the time that Vivus Inc. reported $14m in quarterly net sales for Qsymia (phentermine/topiramate), a sales figure – like that of Belviq’s – that had declined in the last quarter, I wondered if I had been the first to realize that the three companies actively competing with recently launched medicines in the obesity indication appeared to be not so much in a confrontation, but a hapless series of misadventures. 22 March 18th 2016 There were, however, confrontations more worth the effort last week with bigger opponents Amgen Inc. facing off in court to challenge the intellectual property of partners Sanofi and Regeneron Pharmaceuticals Inc. on PCSK9 inhibition in the treatment of elevated lipids. Whatever the outcome, at least the lawyers will win – and if Amgen does prevail, the confrontation is likely to be settled by royalties at dawn. Ironically, like the three recently approved drugs to treat obesity, the great white hopes for PCSK9 inhibition are the ongoing cardiovascular outcome trials (CVOT). Expectations are perhaps too high for a dramatic turnaround in the commercial fortunes of any of these drugs, since – as Novartis AG has found – even in the face of a positive CVOT the commercial confrontation appears to be with pharmacy benefit managers, which are adverse to paying up for expensive drugs indicated for large populations, regardless of the clinical outcomes in those populations. In Europe last week another confrontation inched closer to a partial resolution with the revocation of one of Biogen Inc.’s patents on the 480mg dose of Tecfidera (dimethyl fumarate) for the treatment of multiple sclerosis. The patent challenge had been initiated by Forward Pharma A/S, whose sole reason for being seems to be to challenge Biogen’s patents, although I had wondered if dimethyl fumarate’s long history of use in inflammatory diseases in Europe may result in Forward opening Pandora’s box, inside which no party ends up with European exclusivity. Nevertheless, all the analyst notes I read suggested absolutely no read-through from Europe to Biogen’s US patents on Tecfidera, which was a stunning piece of analytical insight bearing in mind the reasons for the revocation have not yet been published. Another patent confrontation in another court also commenced last week between Gilead Sciences Inc. and Merck & Co. This @scripnews scripintelligence.com one has much higher stakes. The patents surrounding Gilead’s multi-billion dollar HCV antiviral franchise were being challenged by Merck. Like the PCSK9 challenge, while the eventual outcome may be solved by royalties – which the analysts from Jefferies estimate to be worth $2.3bn to date – the real confrontation will also be between any company with a successful HCV antiviral and those who are contracted to pay for it. Developing drugs for which there is no commercial market, or downplaying the fragility of their intellectual property, may cause confrontation between companies, but they often arise from the inability of companies to confront their own issues of drug development and convey them to their investors. In this respect, there is probably a confrontation brewing with Circassia Plc’s imminent Phase III trial announcement for its lead Cat-SPIRE allergy vaccine. Circassia has a track record of opacity in its clinical trial failure reporting – I am recalling the time when the same platform that generated the Cat-SPIRE vaccine failed to show a significant difference over placebo for the Phase II Ragweed-SPIRE allergy vaccine in the low bar of an exposure chamber clinical study. Circassia may hope to divert investors’ attention if Cat-SPIRE fails in the real-world Phase III clinical study by emphasizing the £10.2m in last-quarter sales it reported last week. These sales were generated by spending £188m of the £191m raised in its IPO and £275m secondary offering to buy two companies. While some of last week’s confrontations will be resolved by careful mediations, others are likely to lead to tears at bedtime rather than royalties at dawn. The Magna Biopharma Income fund holdings include Amgen, Regeneron, Gilead and Merck. Andy Smith Andy Smith is chief investment officer of Mann Bioinvest. Mann Bioinvest is the investment adviser for the Magna BioPharma Income fund which has no position in the stocks mentioned, unless stated above. Dr Smith gives an investment fund manager’s view on public life science companies. He has been lead fund manager for four life science– specific funds, including International Biotechnology Trust and the AXA Framlington Biotech Fund, and was awarded the Technology Fund Manager of the year for 2007. For all Stockwatch articles visit scripintelligence.com/stockwatch © Informa UK Ltd 2016 pipeline watch Scrip’s weekly Pipeline Watch tabulates the most recently reported late-stage clinical trial and regulatory developments from the more than 10,000 drug candidates currently under active research worldwide. Late-stage clinical developments for the week 4-10 March 2016 Lead Company Partner Company REGULATORY APPROVAL CSL Behring – Vertex Pharmaceuticals Inc. Eisai Co. Ltd. – Neopharm SUPPLEMENTAL REGULATORY APPROVAL AbbVie Inc. Johnson & Johnson REGULATORY FILING ACCEPTED Vericel Corp. – Drug Indication Market Comments Idelvion (albutrepenonacog alfa) hemophilia B US Orkambi 200/125 (lumacaftor 200mg and ivacaftor 125mg) Lenvima (lenvatinib) cystic fibrosis Australia For use in children and adults with hemophilia B. It is the first coagulation factoralbumin fusion protein product to be approved, and the second Factor IX fusion protein product approved in the US that is modified to last longer in the blood. For the treatment of cystic fibrosis in patients age 12 years and older who are homozygous for the F508del mutation in the CFTR gene. thyroid cancer Israel Indicated for the treatment of adult patients with progressive locally advanced or metastatic, differentiated (papillary, follicular, Hürthle cell) thyroid carcinoma refractory to radioactive iodine. Imbruvica (ibrutinib) chronic lymphocytic leukemia US Approved as a first-line treatment for patients with chronic lymphocytic leukemia (CLL). IMBRUVICA is now approved to treat CLL patients regardless of their treatment history (treatment-naïve and previously-treated patients). MACI (matrix applied characterized autologous cultured chondrocytes) knee cartilage defects US A BLA has been submitted for MACI, an autologous cellular product to treat symptomatic cartilage defects of the knee in adult patients. pediatric psoriasis US FDA has accepted a sBLA for expanded use of Enbrel in pediatric patients with chronic severe plaque psoriasis. The sBLA, submitted on Jan. 5, 2016, is based on results from a Phase III one-year study and its five-year open-label extension study in pediatric patients with moderate to severe plaque psoriasis. FDA has accepted for review a new sBLA to include data from KEYNOTE-010, a pivotal Phase II/III study comparing Keytruda to chemotherapy on the prospective measurement of PD-L1 expression in previously treated patients with advanced NSCLC. SUPPLEMENTAL REGULATORY FILING ACCEPTED Amgen Inc. – Enbrel (etanercept) Merck & Co Inc. – Keytruda (pembrolizumab) non-small cell lung cancer US (NSCLC) ORPHAN DRUG DESIGNATION AstraZeneca PLC – MEDI-551 neuromyelitis optica US For the treatment of neuromyelitis optica (NMO) and neuromyelitis optica spectrum disorders. Currently in Phase IIb for NMO. FAST-TRACK STATUS AstraZeneca PLC – MEDI-8852 influenza A US For the treatment of patients hospitalised with Type A strain influenza. MEDI8852 is in a Phase Ib/IIa clinical trial as a single iv dose in combination with oseltamivir, and as a monotherapy, in adult patients. Nuedexta (dextromethorphan / quinidine) pseudobulbar affect EU The European Commission withdrew the marketing authorisation for Nuedexta in the EU at the request of Jenson Pharmaceutical Services, which notified the European Commission of its decision not to market the product in the EU for commercial reasons. Xilonix (MABp1) elvitegravir, cobicistat, emtricitabine and tenofovir (E/C/F/TAF) colorectal cancer HIV EU Japan For use of an anti-IL-1a MAb for the treatment of advanced colorectal cancer. An anti-HIV single tablet regimen. Torii holds exclusive rights to market E/C/F/TAF in Japan, subsequent to JT obtaining manufacturing and marketing approval. SUPPLEMENTAL REGULATORY FILING Novartis AG Genmab Arzerra (ofatumumab) chronic lymphocytic leukemia EU For use with fludarabine and cyclophosphamide (FC) to treat relapsed chronic lymphocytic leukemia (CLL). The application was submitted by Novartis under its ofatumumab collaboration with Genmab. PARTIAL HOLD LIFTED Medivation Inc. CureTech pidilizumab diffuse large B-cell lymphoma US FDA has lifted the partial clinical hold in hematological malignancies and confirmed the Phase II clinical trial in relapsed or refractory diffuse large B-cell lymphoma, as well as other studies that cross reference the IND, may now proceed. The partial clinical hold was not related to any safety concerns. ofatumumab subcutaneous relapsing multiple sclerosis – ARX-04 (sufentanil) sublingual tablets OMS721 ThermoDox (heat activated liposomal doxorubicin) moderate to severe pain following surgery aHUS hepatocellular carcinoma – Novartis to begin Phase III studies with subcutaneous ofatumumab in patients with relapsing multiple sclerosis during the second half of 2016, following the transfer of rights to ofatumumab in this disease area from GSK to Novartis at the end of 2015. The Phase III study of the subcutaneous ofatumumab in pemphigus vulgaris, which was started by GSK will be discontinued to focus on relapsing multiple sclerosis. Patient enrollment and dosing in a multicenter, open-label Phase III clinical study, known as SAP303, has been initiated. A Phase III study in atypical hemolytic uremic syndrome has started in the US. The Phase III study, OPTIMA, has started to enroll patients in China with hepatocellular carcinoma, as well as in other countries. REGULATORY FILING WITHDRAWAL Otsuka Holdings – Co., Ltd. REGULATORY FILING Xbiotech Inc. – Japan Tobacco Inc. Torii Pharmaceutical Co. Ltd.; Gilead Sciences Inc. PHASE III TRIAL INITIATION Novartis AG Genmab AcelRx Pharmaceuticals Omeros Corp. Celsion – – – US China Source: Sagient Research's BioMedTracker © Informa UK Ltd 2016 @scripnews scripintelligence.com March 18th 2016 23 appointments Ameet Nathwani has been appointed to Sanofi’s executive committee – effective May 1, 2016. Nathwani joins the company from Novartis’ taking the position of executive vice president, group chief medical officer. From 1994 he held senior leadership roles in research and development in Glaxo, SmithKline Beecham and GlaxoSmithKline PLC. He joined Novartis in 2004 as senior vice president and global development head of the cardiovascular and metabolic franchise and held various senior development and commercial positions over the 11 years he was there. He was appointed global head of medical affairs Novartis Pharma AG. in June 2014. Specialist investment manager Pamplona Capital Management has appointed Mark Pacala operating partner with a focus on healthcare. Pacala brings over 20 years’ healthcare industry experience and most recently was a senior advisor in the healthcare team at Oak Hill Capital Partners. He was also general partner at Essex Woodlands Health Ventures and chair and CEO of American WholeHealth and Forum Group. Alzheon Inc. has appointed clinical professor Dennis H. Langer to its board of directors. Langer is currently clinical professor in the department of psychiatry at Georgetown University School of Medicine and director of Myriad Genetics Inc., Dicerna Pharmaceuticals Inc. and Delcath Systems Inc. He previously held executive-level positions at GlaxoSmithKline PLC. and its predecessor, SmithKline Beecham, most recently as senior vice president of research and development. CRISPR Therapeutics has appointed Marc Becker chief financial officer (CFO); he joins the company from rEVO Biologics where he was CFO and senior vice president. Prior to this, he spent 10 years at Genzyme, most recently serving as finance director for the UK and Ireland before becoming the vice president of finance for the Genzyme’s renal and endocrine business in the US. Synergy Pharmaceuticals Inc. has appointed Marino Garcia to the newly created role of executive vice president and chief strategy officer – effective immediately. Garcia has been senior vice president corporate development and part of the leadership team since he joined Synergy in 2014. Previously he was vice president of global business development at Aptalis Pharma (acquired by Forest Labs) and vice president of US commercial operations and new product development at Aspreva Pharmaceuticals (acquired by Vifor Pharmaceuticals). Earlier in his career, Garcia held various US and international leadership roles in companies like Eli Lilly & Co and Pfizer. Immunology focused biotech, Mologen AG.’s supervisory board has appointed Walter Miller member of the executive board and chief financial officer (CFO) – effective April 1, 2016. Miller has experience in working at startups and listed companies in Germany and abroad and most recently was CFO of Nuvisan GmbH. Prior to this he held various managerial positions at Santhera Pharmaceuticals Group. PuretTech’s Vedanta Biosciences has appointed Genzyme’s former vice president Bruce L. Roberts as chief scientific officer. Roberts most recently was head of neuro-immunology and immune-mediated disease research at Sanofi Genzyme. NantKwest, an immunotherapy company focused on the immune system, has appointed Fatih M. Uckun vice president of research and clinical development. Prior to joining NantKwest, Uckun was president of Ares Pharmaceuticals and he was also a professor in the department of pediatrics at the Keck School of Medicine of the University of Southern California and head of translational research in leukemia and lymphoma of the Children’s Center for Cancer and Blood Diseases. Diabetes focused Poxel has named Jonae R. Barnes senior vice president, investor relations and public relations. Barnes started her career at Sepracor (now Sunovion Pharmaceuticals) where she held various management and executive roles over a 14 year period and most recently was senior vice president, investor relations, corporate communications and internal communications. She also held senior leadership roles at Agenus. Let’s get Social We are tweeting, chatting, liking and sharing the latest industry news and insights from our global team of editors and analysts, join us! @scripnews 24 March 18th 2016 @scripnews scripintelligence.com /scripintelligence © Informa UK Ltd 2016