Recently, Pfizer Inc. (PFE) sold the right to its tuberculosis (TB) candidate, sutezolid (PNU-100480), to privately-held clinical-stage pharmaceutical company, Sequella. As per the terms of the agreement, Sequella will get worldwide development and commercialization rights to the candidate. Financial terms of the deal were not revealed.
Sutezolid has the potential to be used for several indications including multi-drug and extensively drug resistant tuberculosis (M/XDR-TB), HIV-associated tuberculosis (HIV-TB), drug-sensitive tuberculosis (DS-TB), and suspected M/XDR latent M.tuberculosis infection (M/XDR-LTBI). Additionally it has the potential to be developed for gram positive bacterial infections, which are resistant to antibiotics such as methicillin-resistant Staphylococcus aureus (MRSA) and vancomycin-resistant Enterococcus (VRE).
Sutezolid has shown promising efficacy in a phase IIa early bactericidal activity study in patients suffering from TB in South Africa.
We note that in preclinical laboratory studies the combination of sutezolid with Sequella’s TB candidate, SQ109, has demonstrated encouraging additional activity as compared to single agents alone. SQ109 is currently being evaluated in phase II studies for DS TB and multi-drug resistant (MDR) TB.
We believe Sequella’s acquisition of sutezolid rights makes strategic sense. The company plans to develop the TB candidates for both DS and MDR-TB. MDR TB alone represents a lucrative market for Sequella with the company estimating peak sales of $400-$500 million for any drug entering this market.
Pfizer currently carries a Zacks Rank #3 (Hold). Companies that currently look more attractive include Jazz Pharmaceuticals (JAZZ), NPS Pharmaceuticals, Inc. (NPSP) and Cadence Pharmaceuticals Inc. (CADX), carrying a Zacks Rank #1 (Strong Buy).
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