With the SPDR S&P Biotech Index up 37% 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.
As always, let’s start off with some of the positive stories we witnessed this week.
In a similar instance of great news, Incyte Corporation (NASDAQ:INCY) shares skyrocketed after announcing positive proof-of-concept data from a phase 2a clinical study of ruxolitinib in cases of refractory metastatic pancreatic cancer. The data from the study in which ruxolitinib (the scientific name for Jakafi, Incyte’s FDA-approved myelofibrosis drug) was combined with Roche‘s Xeloda demonstrated six-month survival of 42% for the ruxolitinib arm as compared to just 11% for the placebo. In addition, only the ruxolitinib arm showed any durable tumor response and significant improvement in body weight.
Not to be lost on this news, either, is Novartis AG (ADR) (NYSE:NVS) which is the global licensing holder to ruxolitinib outside the United States. Novartis AG (ADR) (NYSE:NVS) recently lost patent exclusivity to its best-selling hypertensive drug, Diovan, and is definitely looking for ways to bolster its product pipeline. If ruxolitinib, a JAK1 and JAK 2 inhibitor, continues to show progress in trials, I wouldn’t be shocked to see Novartis AG (ADR) (NYSE:NVS) simply snatch up Incyte and keep 100% of sales. Shares of Incyte Corporation (NASDAQ:INCY) gained 30% this week while Novartis AG (ADR) (NYSE:NVS)’ shares added 4%.
Rounding out the good news this week with a solid gain of 20% was Pain Therapeutics, Inc. (NASDAQ:PTIE), which rallied after Pfizer announced that it would indeed be running another clinical trial for painkiller Remoxy. The Remoxy saga, which was developed by Pain Therapeutics, Inc. (NASDAQ:PTIE), is licensed to Pfizer and incorporates DURECT‘s gel-capsule technology, seems to be right up there next to Days of Our Lives for longest running daytime drama.