Bayer Discontinues Hemophilia Study (ABBV) (BAYRY) (BIIB) (CPTS)

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Bayer’s (BAYRY) HealthCare segment recently decided to discontinue the phase II/III TRUST (TReatment with Unique recombinant rFVIIa STudy) study on BAY 86-6150. The study was evaluating the efficacy and safety of the candidate in patients suffering from hemophilia A or hemophilia B with inhibitors.

Bayer stated that a neutralizing antibody was detected during the course of the study. Since patient safety was the primary objective of the study, the company discontinued the BAY 86-6150 trial as a precautionary measure.

Bayer already has Kogenate in its product portfolio for the treatment of haemophilia. The drug generated around €1.2 billion in revenues during 2012. Bayer also has BAY 94-9027 (rFVIII mutein) in its pipeline targeting hemophilia A. The candidate is currently in phase III development.

We note that companies like Biogen Idec Inc. (BIIB) are also developing therapies targeting the hemophilia market.

Bayer was recently in the news when it inked a deal to buy Conceptus Inc. (CPTS) for $31.00 per share or approximately $1.1 billion in cash. Bayer intends to launch a public tender soon to acquire all shares of Conceptus. The transaction is expected to close by mid-2013.

Bayer’s impending acquisition of Conceptus will add the Essure permanent (non-surgical) birth control system to its product portfolio. We note that Conceptus’ Essure procedure was approved in 2002 in the US and is well accepted in the market.

Bayer, a large cap pharma company, presently carries a Zacks Rank #4 (Sell). Other large cap pharma companies such as Abbvie Inc. (ABBV) currently look more attractive. Abbvie carries a Zacks Rank #2 (Buy).

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