AbbVie (ABBV) was in the news last week thanks to its agreements with Infinity Pharmaceuticals (INFI) and Calico. Keryx Biopharmaceuticals (KERX) was also in the headlines – the company’s shares declined despite receiving FDA approval for its oral, ferric iron-based compound. Gilead (GILD) was in the news as well, once again due to its hepatitis C virus (HCV) treatment, Sovaldi.
Recap of the Week’s Most Important Stories
1. AbbVie was very active on the deal making front last week with the company signing agreements with Infinity Pharma and Calico (the Google-backed life sciences company). The Infinity Pharma deal could see AbbVie shelling out up to $805 million in the form of upfront and milestone payments. The agreement is focused on experimental cancer treatment, duvelisib. AbbVie, which will be acquiring Shire, is looking to reduce its dependence on Humira and expand its portfolio (read more: Will AbbVie's $805 Million Agreement for Duvelisib Pay Off?).
2. Keryx saw its shares sliding despite receiving FDA approval for ferric citrate, its oral, ferric iron-based compound. Shares were down reflecting concerns regarding the product labeling which may curtail uptake (read more: Keryx Falls after Ferric Citrate's Approval with Warnings).
3. Prana Biotechnology’s shares were up on news that the company has gained orphan drug status in the U.S. for its experimental Huntington disease treatment, PBT2. This means that the company will enjoy seven years of market exclusivity for PBT2 in the treatment of Huntington disease. The company will get other incentives as well (read more: Prana Biotechnology Up on Orphan Drug Status for PBT2).
4. Gilead is rumored to be close to sealing a deal under which its high-priced HCV treatment, Sovaldi, will be provided at a huge discount to 80 developing countries including India and Pakistan. According to a Bloomberg report, Sovaldi could be sold for as less as $900 for a 12-week course. This is in stark contrast to the drug’s $84,000 price tag in the U.S. for the same period of treatment. Gilead’s shares were down on concerns that this steep discount may once again lead to questions being raised about the drug’s high price tag in the U.S. (read more: Gilead Down on Likely Sovaldi Generic Deal in Poor Nations).
5. Amgen (AMGN), which has made significant progress with its pipeline this year, has filed for EU approval of its PCSK9 inhibitor, evolocumab. Evolocumab is one of the most important candidates in Amgen’s pipeline and represents huge commercial potential, once approved and launched. The company had filed for U.S. approval just a few days back (Read more: Amgen Seeks EU Approval for PCSK9 Inhibitor Evolocumab).
Performance
Last week, several of the major biotech stocks were down except Vertex which was up a nominal 0.17%. Gilead was the biggest gainer over the last six months with share price increasing 33.06%.
Biogen (BIIB) was the biggest loser among the big biotechs last week with its shares declining 4.63%. Alexion was a close second with shares declining 4.59%. The company, which had already received a warning letter from the FDA last year for its Rhode Island manufacturing facility, received a Form 483 with three inspectional observations from the FDA late last month (read more: Alexion's Soliris Manufacturing Facility Fails to Please FDA). Alexion’s shares were down 3.98% over the last six months.
Overall, the NASDAQ Biotechnology Index lost 2.42% last week. (See the last biotech stock roundup here: United Therapeutics Up on Court Ruling, Amgen Files PCSK9 Inhibitor)
| Company | Last Week | Last 6 Months |
| AMGN | -0.41% | 13.54% |
| BIIB | -4.63% | -0.58% |
| GILD | -3.17% | 33.06% |
| CELG | -2.27% | 18.71% |
| REGN | -3.65% | 5.57% |
| ALXN | -4.59% | -3.98% |
| VRTX | 0.17% | 16.49% |
What's Next in the Biotech World?
NPS Pharmaceuticals’ (NPSP) Natpara, which is currently under FDA review for hypoparathyroidism, will be reviewed by an FDA Advisory Committee later this week.
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