Pipeline updates are highly awaited events in the pharma/biotech sector as they play an important role in deciding whether or not to invest in a particular company. These updates provide information on experimental drugs and at times give an insight into the commercial potential of the candidate once it is successfully developed and commercialized.
Abbott Labs (ABT) recently announced that it will initiate a trial, ABSORB IV, on bioresorbable vascular scaffold (BVS) Absorb.
The trial will evaluate whether Absorb is more cost-effective and offers a higher quality of life than other metallic drug eluting stent (DES).
The randomized heart stent trial will measure angina (chest pain) as the primary endpoint at one year. The other primary endpoint of the ABSORB IV trial is to assess the long-term clinical safety and performance based on the change in target lesion failure (TLF) from one to five years.
Abbott Labs plans to consolidate data from the ABSORB IV trial with that from the ABSORB III trial to create a population of more than 5,000 patients studied in the U.S.
Earlier, Abbott Labs released positive one-year results from the randomized, controlled trial ABSORB II. The trial, conducted in Europe, compared the safety and efficacy of the dissolving Absorb heart device to Abbott Labs’ Xience family of DES in patients suffering from coronary artery disease (CAD).
Data from the trial showed that patients treated with Absorb experienced a significantly lower rate of angina compared to those treated with the Xience family of DES.
We note that Absorb obtained the CE mark in Europe in Jan 2011 but is yet to be approved in the U.S.
The vascular business is an important part of Abbott Labs’ product portfolio that generated sales of $1.5 billion in the first half of 2014. Of the total vascular sales, approximately $738 million came from the DES and BVS product portfolio. The continued rollout of Absorb and Xience Xpedition along with new products such as Supera stents will further strengthen the company’s vascular portfolio in 2014.
Abbott Labs currently carries a Zacks Rank #2 (Buy). Investors may also consider stocks like Allergan (AGN), Gilead Sciences (GILD) and Shire (SHPG). While Allegan and Gilead Sciences carry a Zacks Rank #1 (Strong Buy), Shire is a Zacks Rank #2 stock.
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