With the SPDR S&P Biotech Index up 35% over the trailing-12-month period, it’s evident that investment dollars are willingly flowing into the biotech sector. Keeping that in mind, let’s have a look at some of the rulings, studies, and companies that made waves in the sector last week.
There weren’t many well-known names making big moves this week, but we were privy to a good variety of stories including FDA designations and new drug filings, plenty of analyst action, and a late-week, rally-killing share offering.
The best-known, and potentially most exciting, story of the week was the Food and Drug Administration’s classification of Pfizer Inc. (NYSE:PFE)‘s Palbociclib as a “breakthrough therapy.” Palbociclib is an oral treatment for ER+, HER2-positive metastatic breast cancer that, in trials, when combined with Novartis AG (ADR) (NYSE:NVS)‘ Femara, crushed the control arm made up of Femara alone in terms of progression-free survival (26.1 months versus 7.5 months). Those amazing results earned Palbociclib this extremely rare designation from the FDA, which should help expedite its development and hopeful approval of the drug.
ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD) added on 63% since last Friday, following an announcement that the FDA will allow it to file an accelerated new drug application for its Parkinson’s disease anti-psychosis drug, Pimavanserin. ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD)’s drug met the primary endpoint of demonstrating highly significant anti-psychotic activity and the secondary endpoint of increased motoric tolerability in its late-stage trial, which provided more than enough evidence for the FDA to give the company the go-ahead to skip another confirmatory trial. Pimavanserin’s chances for approval definitely got a boost, but ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD)’s valuation certainly is giving me cause for concern.
The red-hot Astex Pharmaceuticals, Inc. (NASDAQ:ASTX) continued its impressive surge after updating its preclinical progress on SGI-110 on Wednesday. Astex Pharmaceuticals, Inc. (NASDAQ:ASTX) noted that “in ovarian cancer xenograft models, SGI-110 in combination with platinum significantly delayed tumor growth.” In addition, the combination was shown to induce demethylation and increased expression of multiple tumor suppressor and tumor differentiation genes. The good news here is this data would support the ongoing midstage trials for which SGI-110 is currently being used in combination with Carboplatin to treat platinum-resistant ovarian cancers. Shares of Astex Pharmaceuticals, Inc. (NASDAQ:ASTX) are now up 119% year to date.