Biotech Breakfast – Healthcare Equities Close Higher, Biotech Rallies; LLY Announces $2.5 billion Injectable Manufacturing Expansion
Dow +0.58%, S&P 500 +0.74%, Nasdaq +1.13%, Russell 2000 +0.52%
Healthcare equities closed broadly higher on Monday afternoon, with all major health groups finishing the session higher as we start the Holiday week. Healthcare was up +0.42% versus the S&P 500 which rose +0.71%. Biotech outperformed, MedTech stocks saw moderate gains, and Hospitals were higher again at the closing bell.
Notable gainers during the day were MediciNova ($MNOV) which rose +15.7% on successfully achieving primary endpoints in its glioblastoma clinical trial, Alector ($ALEC), which was up +14.2% and the day’s best performer on XBI, and Anavex Life Sciences, which saw gains of +11.6% as it begins its regulatory submission to EMA. The day’s decliners were NanoString Technologies ($NSTG) which plummeted (50.0%) following Delaware District Court ruling that will see the company pay approximately $31 million in damages to 10x Genomics for patent infringements. Seres Therapeutics ($MCRB) lost (31.7%) and 2seventy Bio ($TSVT) was downgraded at Wedbush, losing (18.3%) in intraday trading.
In headlines, Teva Pharmaceuticals ($TEVA) received FDA approval on Friday for its teriparatide injection, a complex generic of Eli Lilly’s ($LLY) successful Forteo (teriparatide) for osteoporosis. Tenet Healthcare ($THC) announced it will sell three South Carolina hospitals to Novant Health for around $2.4 billion and Eli Lilly ($LLY) announced a $2.5 billion expansion to its injectable manufacturing capacity in Germany, with construction slated to begin next year, and operations to commence in 2027.
Global Public Health Crises
Diseases that pose the most significant threat to the health of the world’s population are on the rise due to aging populations and risk factors including tobacco use, alcohol abuse, sedentary lifestyle, poor diet and air pollution. According to the World Health Organization, diabetes, cancer and cardiovascular disease are responsible for the deaths of 41 million people each year, more than 70% of all deaths worldwide. The CDC lists diabetes, obesity, cardiovascular disease, stroke, liver disease and dementia as being among the leading causes of death in the United States.
The increasing prevalence of these diseases across the global population deems them public health crises that require urgent and coordinated action for control and prevention. Two significant conferences were held this week – the American Heart Association’s 2023 Scientific Sessions and the American Association for the Study of Liver Diseases (AASLD) Liver Meeting – with sobering health statistics emerging from both.
Experts blame rising rates of obesity and diabetes for a projected increase in cases of chronic liver disease by 2050, which is expected to result in nearly twice as many liver cancers and almost triple the need for liver transplantation. Attendees at the AHA Scientific Sessions heard that sedentary behavior has emerged as a distinct factor influencing negative outcomes for patients recovering from acute coronary syndrome.
This week, PRISM MarketView launched its PRISM Emerging Public Health Index to track the progress of micro and small cap companies contributing to treatments that address these significant threats to global health.
In Public Health clinical news, BioVie ($BIVI) announced positive safety and efficacy data from its Phase 2 clinical trial of BIV201 for patients with refractory ascites due to cirrhosis, Esperion Therapeutics ($ESPR) presented an analysis demonstrating inflammation’s role as a predictor of cardiovascular risk at the 2023 AHA Scientific Sessions, and Chemomab ($CMMB) received FDA Fast Track designation for CM-101 for progressive liver disease.
The Trader’s Lens
Clinical-stage immunotherapy company $HARP is leading the Prism MarketView Biotech index. The stock is now back to where it was in late August after it had a big slide from September to mid-October.
PRISM MarketView, a leader within the financial markets and news community, has debuted its PRISM Emerging Public Health Index.
The week’s headlines
BioVie Inc. (NASDAQ: BIVI) has announced announced positive clinical safety data from the Company’s Phase 2b open-label study evaluating the efficacy and safety of BIV201 (terlipressin) administered as a continuous infusion, with standard of care (SOC) in patients with refractory ascites due to cirrhosis.
Esperion Therapeutics (NASDAQ: ESPR) has presented results from a pre-specified, exploratory analysis of CLEAR Outcomes at the 2023 American Heart Association (AHA) Scientific Sessions. Results were also simultaneously published in the peer-reviewed AHA journal, Circulation.
Chemomab Therapeutics Ltd. (Nasdaq: CMMB) has received FDA Fast Track Designation for CM-101 for the treatment of primary sclerosing cholangitis (PSC). PSC is a progressive, fibrotic liver disease that can result in liver transplant, cancer and early death.
SciSparc Ltd (Nasdaq: SPRC) has announced positive topline results from its investigator-initiated Phase IIa trial evaluating its proprietary SCI-110 treatment for Alzheimer’s agitation.
Medical technology company, HeartSciences (Nasdaq: HSCS), has announced that its MyoVista® wavECGTM has been selected by Cardiact Ltd to be used in its heart screening program of members of the Association of Garda Sergeants and Inspectors (AGSI).