Showing posts with label Benlysta. Show all posts
Showing posts with label Benlysta. Show all posts

11/18/10

Human Genome Sciences Shares Decline After FDA Recommend Benlysta

Elmo the Investment Banker
Elmo the Investment Banker is killing traders. 
Stick to Sesame Street Elmo. 
You aren't cut out for Wall St.

Just after Tuesday's FDA Recommendation for Human Genome Sciences' Lupus Therapy Benlysta, Citigroup and Bank of America downgraded the stock.  Obviously, they mistakenly shorted the stocks and wanted to get their money back after guessing wrong on the FDA decision.  The drug was recommended by a 13-2 vote.  It is very similar to other cases in recent FDA Approvals, where the stock has actually has gone down on good news, not up.

Manipulating shorts cover their positions by making sure they got analysts on their side to downgrade a stock in case a Panel vote goes against them. Here is a perfect example of how Hedge Fund Shorts cover their positions:

Two downgrades Wednesday morning, one each from Citi and Bank of America/Merrill Lynch, reflected these new concerns and sent Human Genome shares down 7% to $23.98 in early trading.

An advisory panel convened by the U.S. Food and Drug Administration voted 13-2 Tuesday night to recommend Benlysta's approval as the first new lupus therapy in 50 years.

11/16/10

Human Genome Sciences Gains FDA Recommendation for Benlysta. Shares Soar 10% in Afterhours Trading

Image representing Human Genome Sciences as de...

Good news today for Human Genome Sciences and those who suffer from Lupus.  FDA voted in favor of Benlysta with a strong vote of 13-2.  Although the FDA doesn't always approve drugs that are recommended by the panel, many times they do, and more so with an Approval Recommendation than without one.  Shares of Human Genome Sciences were up 10.51% to 28.60 in afterhours trading. 

Trading was halted throughout the day and will resume normal trading tomorrow.  I expect a strong day tomorrow and it should be watched closely tomorrow.  It's partner Glaxo SmithKline was trading slightly higher at 39.45 +0.91 a 2.36% gain.  This is really good news for investors who have watched HGSI drop from a high of  30.18 in September to a low of 23.60 this past Friday from a Doctor scandal, a CRL for Zalbin, and safety concerns from their Phase III clinical trial results for Benlysta. 

It did report positive 3Q 2010 results in the following press release,  Human Genome Sciences Announces Third Quarter 2010 Financial Results and Key Developments.  I see HGSI stock to rise towards the 32-35 mark with possible Full Approval coming December 9th.  

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Yahoo Finance--HGSI
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FDA panel favors lupus drug from Human Genome Sciences despite mixed results in studies

11/12/10

Tuesday's FDA Panel Review for Human Genome Science's Benlysta

Walking In Purple For Lupus Awareness In Honou...
Purple Walk for Lupus Awareness

Everything you need to know about Tuesday's FDA panel recommendation for Human Genome Sciences therapy for Lupus, Benlysta.  If approved Benlysta would be the first approved therapy in 50 years for Lupus.  Friday the FDA released the notes for the upcoming panel review Tuesday, November 16th.  Concerns for the panel Tuesday were an increased risk of suicide, risk of infection, and decreased efficacy in African-American patients, who are more prone to Lupus.  Forbes' The Medicine Show Blog with Matthew Herper highlighted some of these concerns.  Benlysta is teamed up with Glaxo SmithKline and if approved Human Genome Sciences will share marketing costs and profits.  The expected market is anywhere between 1-3 Billion.

I think the benefits for the drug outweigh any concerns and it could be approved December 9th by the FDA.  With that being said though, the FDA has rejected a lot of drugs this year and is very conservative.  There are some concerns and more clinical trials could be advised before approval.  We will have to see.  Today's FDA review notes had concerns with the drug's suicide rate and it's efficacy for African-Americans, who are more likely to have Lupus.  The concerns dropped the stock and has investors spooked, but I still think that it will be recommended.  I hope I am not wrong on this one. 


Wikinvest--Glaxo (GSK)
Yahoo Finance--HGSI
Yahoo Finance--GSK

For more on Tuesday's Decision

8/25/09

Market Rumors Human Genome Sciences as a takeover target


Rumors of Glaxo's takeover of Human Genome Sciences for $30/share have pushed the stock up considerably today. Human Genome Sciences stock (HGSI) was up $2.03 to $19.21 per share in afternoon trading with a gain of 11.79%. Aftermarket trading is up +0.46 to 19.66, another gain of 2.40%. I see this as only a rumor but it does make some since as Human Genome and Glaxo have been partner's since 1993. Human Genome Sciences worked together and received royalties from Glaxo in 2006 for the Diabetes medication Syncria. April 2008 saw HGSI reacquiring the rights for the HGS-ETR1 and HGS-ETR2 oncology programs from Glaxo.

So what is going on here? Has Glaxo seen results from their second set of pivotal Phase III trial and are ready to make a deal? Results are set to be released in November for their Lupus drug BENLYSTA. HGSI press releases from their website can be found here Benlysta Results. For more takeover target information check out the Washington Biz Journal's article HGSI:a takeover target?. MedicalNewsToday posted an article in June announcing the Lupus drug's positive results on Benlysta.

Regardless, I see this as positive financial news for Human Genome Sciences which once traded in March around 0.45. I'm not sure I believe the hype in the rumor but I do like the news coming in and anticipation for results in November. Many analysts see this stock as undervalued and have a target range around 26/share.

Human Genome Sciences has declined to comment on the rumor. Human Genome corporate leaders have stated in the past that they are seeking independence in approval of these 2 trials and have no reason to change that. This was quoted by CEO Tom Watkins in July: “We’re really focused on getting the drugs to patients. We think we have the capability and wherewithal to do it on our own, and we don’t see any reason why that would change.”

With that said I don't know. I've seen CEOs take the money and run but I don't think this is the case. Just a hunch. Rumors have surrounded Spectrum Pharma as a takeover target for Bayer AG recently and those did not fall through either. It is a good marketing tool to push the stocks price up and it works pretty well. Needless to say I like Human Genome's chances with their Phase III results in November. I do see the stock price going higher with positive results and after all is said and done with this rumor I see the price will value out and be a good buy. Just a reminder not to chase stocks. Buy at a valued price and good things will happen.

Disclosure: Long Human Genome Sciences

7/21/09

Human Genome Sciences Lupus News and Stock Future.



With the news of Human Genome Science's Lupus drug, HGSI stock soared to about 275% the previous value. This is reminiscent of Dendreon's huge gain with their Prostate Cancer drug. With this said I am sceptical of the overall longevity of this trade and with so many cashing out I see a huge fallout, as this is simply a Phase III clinical trial and another phase must be acheived before FDA approval. I see this stock dropping like a rock and many late investors will lose a lot of money tomorrow. Usually after a huge spike the stock has to come down. It's a simple supply and demand chart when it comes to stocks and this one is not any different than the price of gas, or the value of the dollar. I wasn't the best at Econ101 in college as I'm more of a finance person but this stock is going down.

Although I feel the drug will eventually be approved, this could be years down the road. With Human Genome's shaky past I see this as a longshot for longevity. So buyer beware. I too have taken the plunge and followed eagerly on Clinical Trial news like this only to see the stock dropping heavily in the days to weeks to come. Still this is great news for the biotech community and we should be focused on the treatment of Lupus but if you are in it for a quick buck, you've missed out. I still like the long option of HGSI but for day trading its too late and you need to be careful on following the hype and look for the next Human Genome Science or Dendreon out there. Check the FDA calendars and follow closely with the news and PR newswires and another will come along. With that said, it can take years to manufacture a drug for a biotech and many problems can arise even after the drug's approval.

I've seen it all when it comes to biotech manufacturing. The molecule can drop out of solution producing low yeilds. The manufacturing facility can have sterility issues. This is very common although we won't admit it. Sure the final product is sterile, but what did they have to do to acheive this? So many things can go wrong. I'm not saying they will, I'm just saying they can. It takes a considerable amount of time before the molecule hits the market and the company makes a profit. HGSI is not out of the woods just yet. Wait for it to drop and buy it up for the next round.

Here is a nice article on Human Genome Sciences found on Barron's website.

http://online.barrons.com/article/SB124809851547865115.html?ru=yahoo

MONDAY, JULY 20, 2009
BARRON'S TAKE

What's Next for High-Flying Human Genome Sciences? By TERESA RIVAS | MORE ARTICLES BY AUTHOR

Positive results for the company's experimental lupus drug sent shares skyrocketing on Monday.
HUMAN GENOME SCIENCES (ticker: HGSI) investors don't have a case of the Monday blahs. With a 231% gain in mere hours, how could they?

Before the bell Monday, Human Genome and GlaxoSmithKline (GSK) announced that the experimental lupus drug Benlysta showed promise in treating the stubborn autoimmune disease in its first Phase III trials.

The results were huge news -- the FDA has not granted approval for a new lupus treatment in half a century -- and investors' reactions were even bigger. Human Genome shares more than tripled in early afternoon trading, up $7.68, or 231%, to $11.

There's no doubt that Benlysta could be enormously important for Human Genome and lupus sufferers worldwide, but given past volatility and uncertainty, investors might want to take profits in light of today's phenomenal pop and look to pick up shares later, and ostensibly at a lower price, before Benlysta makes it to market.

Benlysta, although promising, still has to pass the second Phase III trial in November to assess its long-term effectiveness. Given the nature of the disease, many lupus sufferers will likely relapse over time, meaning that the November trial may not be as resounding a success as the first, according to Thomas Weisel analyst Ian Somaiya.

Somaiya thinks that the strength of the first Phase III trial alone, combined with the current antiquated lupus treatment, should be enough for approval. However, one might expect that with a stock that has risen so dramatically, investors may not read into the nuances of a less than stellar November trial.

Even taking Benlysta's approval for granted, the drug will likely not make it to market until 2011. That leaves Human Genome the rest of 2009 and all of 2010 without the benefit of its sales. Analysts do not expect the company to turn a profit either year, with losses projected to jump from 13 cents this year to well over $1 in 2010. And before today's pop, Human Genome's more than $580 million in debt well outstripped its market cap.

Additionally, Human Genome has a history of hype without results. In 2004, the company was touted as the one of the main beneficiaries of Project Bioshield, a government program aimed at developing and stockpiling vaccines and antidotes to bioweapons, but enthusiasm quickly faded.

Likewise, in March shares lost more than half their value in one day, when Albuferon, Human Genome's Hepatitis C drug, was trumped by Roche's (RHHBY) competing treatment in a late-stage trial, despite meeting other trial goals.

Not to mention that it is difficult to justify chasing a stock that has risen from 45 cents in March to a high of just over $11 in midday trading today (a 2,349% rise in four months), especially months before an FDA decision and more than a year before any sales start rolling in.

That said, Lazard Capital Markets analyst Terence Flynn pegs the global lupus market as a $2.9 billion opportunity, given the paucity of treatments. Flynn notes that when Benlysta finally hits the market in 2011, it will likely see sales of $207 million, eventually hitting the $1 billion mark in 2014. Still, he doesn't see the stock running much further than today's price, putting its fair value at $10.

Therefore, Benlysta is undoubtedly a boon for the five million lupus sufferers worldwide, and may eventually reward investor as well. But given the stock's furious run-up, history of volatility, interim earnings losses, and the time lapse before the drug's first sales, it seems wise to take profits. Investors should have plenty of time to pick up the shares cheaper and still benefit from Benlysta's promise.


Another good article is on Bloomberg at the following link.

http://www.bloomberg.com/apps/news?pid=20601085&sid=am8d7NnxYQ9Y

Human Genome Science Triples on Success of Lupus Drug (Update3)

By David Olmos and Lisa Rapaport

July 20 (Bloomberg) -- Human Genome Sciences Inc. more than tripled in New York trading after the company and GlaxoSmithKline Plc said their experimental lupus drug reduced patients’ symptoms in a yearlong study.

Human Genome Sciences leaped $9.19 to $12.51 at 4 p.m. in Nasdaq Stock Market composite trading, its greatest single-day rise since shares began trading in December 1993. London-based Glaxo’s American depositary receipts rose 4 percent, or $1.45, to $37.81 in New York Stock Exchange trading, after the study raised hopes of the first new therapy in more than 50 years for the autoimmune disease.

The positive results for Benlysta were unexpected by analysts who cited disappointing data in earlier clinical trials and a history of failures for treatments of lupus, which triggers the immune system to attack healthy cells. Ten of 12 analysts rated Human Genome a “hold” or “sell” as of July 17, according to Bloomberg data. No cure exists for the disease, which affects about 5 million people worldwide.

“The lupus community has really been on tenterhooks waiting for a positive announcement,” Sandra Raymond, chief executive of the Lupus Foundation of America, a Washington, D.C.-based patient advocacy group, said in a July 17 telephone interview, before the results were announced. “Since lupus was first discovered over a century ago, there has never been a drug specifically developed for lupus.”










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7/20/09

Human Genome Sciences Up over 200 percent Monday July 20, 2009




This has been one of my favorites for awhile after learning about Craig Venter and Sequencing the Human Genome. Craig partnered with Human Genome Sciences but you can learn more by reading Craig Venters A Life Decoded Biography which shows the ups and downs a scientist can have especially when dealing with the Government and the Human Genome Project.

Wikipedia on Human Genome Sciences.
The company was founded by William A. Haseltine, a noted Harvard professor and AIDS researcher. HGS had a partnership for several years after its founding with Craig Venter and his non-profit TIGR to begin sequencing and submitting patents on hundreds of thousands of protein-encoding DNA fragments. In 2000, Haseltine said that his work "speeds up biological discovery a hundredfold, easily." He talked of finding in genes "the fountain of youth" in the form of "cellular replacement" therapies. More than $2 billion in investments was raised by the company by 1999-2000. Two initial drugs failed in clinical trials, and the stock share price declined from its highs. For example, in September 2000, the company reported that it had found a way to treat large, painful sores that often plague elderly patients, using a protein spray called repifermin, made by a human gene called keratinocyte growth factor-2. In February 2004, the company said that it was ending the development of repifermin because it showed no more benefit than a placebo in clinical trials.


On 7/20/09, Human Genome Sciences (NASDAQ:HGSI) and GlaxoSmithKline (NYSE:GSK) announced that Benlysta (belimumab, formerly LymphoStat-B) met the primary endpoint in BLISS-52, the first of two pivotal Phase 3 trials in patients with serologically active systemic lupus erythematosus (SLE). In the placebo-controlled BLISS-52 study, the results showed that Benlysta plus standard of care achieved a clinically and statistically significant improvement in patient response rate at Week 52, compared with standard of care alone. Study results also showed that belimumab was generally well tolerated, with adverse event rates comparable between belimumab and placebo groups. Assuming positive results in November 2009 from a second Phase 3 trial of Benlysta, the companies plan to submit marketing applications in the United States, Europe, and other regions during 1H10.




Human Genome Sciences, Inc. (Nasdaq: HGSI) and GlaxoSmithKline PLC (GSK) today announced that BENLYSTA(TM) (belimumab, formerly LymphoStat-B(R)) met the primary endpoint in BLISS-52, the first of two pivotal Phase 3 trials in patients with serologically active systemic lupus erythematosus (SLE). In the placebo-controlled BLISS-52 study, the results showed that belimumab plus standard of care achieved a clinically and statistically significant improvement in patient response rate at Week 52, compared with standard of care alone. Study results also showed that belimumab was generally well tolerated, with adverse event rates comparable between belimumab and placebo treatment groups. "The BLISS-52 results demonstrated that BENLYSTA has the potential to become the first new approved drug in decades for people living with systemic lupus," said H. Thomas Watkins, President and Chief Executive Officer, HGS. "Given the limited treatment options currently available, patients would benefit greatly from potential new treatments. BENLYSTA is an outstanding example of the type of treatment HGS is working to develop and bring to patients. Assuming positive results in November from our second Phase 3 trial of BENLYSTA, we and GSK plan to submit marketing applications in the United States, Europe and other regions in the first half of 2010."
Belimumab is an investigational drug and the first in a new class of drugs called BLyS-specific inhibitors. No new drug for lupus has been approved by regulatory authorities in more than 50 years. Belimumab is being developed by HGS and GSK under a co-development and commercialization agreement entered into in August 2006.

"Lupus is a chronic, often debilitating, and sometimes fatal illness that affects an estimated five million people worldwide and can have a devastating effect on both patients living with the disease and their families," said Carlo Russo, M.D., Senior Vice President, Biopharm Development, GSK. "BENLYSTA is the first medicine being developed specifically for lupus that has reached this late stage of clinical development with positive results. We look forward to completing the pivotal studies, with the hope of bringing this potentially important therapeutic advance to patients suffering from SLE."

Key Findings from BLISS-52

"The BLISS-52 results support and extend the findings that emerged in the serologically active subgroup of SLE patients at Week 52 in our Phase 2 trial," said David C. Stump, M.D., Executive Vice President, Research and Development, HGS. "We are delighted to report that the efficacy of treatment with BENLYSTA plus standard of care was superior in this study to that of placebo plus standard of care, while the safety profile was comparable overall to placebo. BENLYSTA met the primary endpoint in this Phase 3 study at a robust level of statistical significance. BENLYSTA also significantly reduced SLE disease activity versus placebo based on a number of other measures, including SELENA SLEDAI and Physician's Global Assessment. Of note, a greater percentage of patients receiving BENLYSTA achieved a clinically meaningful reduction in steroid dose. We hope to have a full presentation of BLISS-52 results at an appropriate scientific meeting later in 2009."

About the BENLYSTA (belimumab) Phase 3 Development Program

The Phase 3 development program for belimumab includes two double-blind, placebo-controlled, multi-center Phase 3 superiority trials - BLISS-52 and BLISS-76 - to evaluate the efficacy and safety of belimumab plus standard of care, versus placebo plus standard of care, in serologically active (i.e., autoantibody-positive) patients with SLE. This is the largest clinical trial program ever conducted in lupus patients. BLISS-52 randomized and treated 865 patients at 90 clinical sites in 13 countries, primarily in Asia, South America and Eastern Europe. BLISS-76 enrolled and randomized 826 patients at 133 clinical sites in 19 countries, primarily in North America and Europe. The design of the two trials is similar, but the duration of therapy in the two studies is different - 52 weeks for BLISS-52 and 76 weeks for BLISS-76. The data from BLISS-76 will be analyzed after 52 weeks in support of a potential Biologics License Application in the United States and Marketing Authorization Application in Europe and other regions. HGS designed the Phase 3 program for belimumab in collaboration with GSK and leading international SLE experts, and the program is being conducted under a Special Protocol Assessment agreement with FDA.

The primary efficacy endpoint of BLISS-52 and BLISS-76 is the patient response rate at Week 52, as defined by: (1) a reduction from baseline of at least 4 points on the SELENA SLEDAI disease activity scale (which indicates a clinically important reduction in SLE disease activity); (2) no worsening of disease as measured by the Physician's Global Assessment (worsening defined as an increase of 0.30 points or more from baseline); and (3) no new BILAG A organ domain score (which indicates a severe flare of lupus disease activity) and no more than one new BILAG B organ domain score (which would indicate a moderate flare of disease activity). Analysis for the primary endpoint is based on intention-to-treat (ITT) and adjusted for baseline stratification factors, including SELENA SLEDAI score, proteinuria and race.

In each of the two Phase 3 trials, patients were randomized to one of three treatment groups: 10 mg/kg belimumab (BLISS-52, n=290), 1 mg/kg belimumab (BLISS-52, n=288), or placebo (BLISS-52, n=287). Patients are dosed intravenously on Days 0, 14 and 28, then every 28 days thereafter for the duration of the study. All receive standard of care therapy in addition to the study medication. Safety is reviewed by an independent Data Monitoring Committee throughout both studies.

About BENLYSTA (belimumab)

Belimumab is an investigational human monoclonal antibody drug that specifically recognizes and inhibits the biological activity of B-lymphocyte stimulator, or BLyS(R). BLyS is a naturally occurring protein discovered by HGS that is required for the development of B-lymphocyte cells into mature plasma B cells. Plasma B cells produce antibodies, the body's first line of defense against infection. In lupus and certain other autoimmune diseases, elevated levels of BLyS are believed to contribute to the production of autoantibodies - antibodies that attack and destroy the body's own healthy tissues. The presence of autoantibodies appears to correlate with disease severity. Preclinical and clinical studies suggest that belimumab can reduce autoantibody levels in SLE. BLISS 52 results suggest that belimumab can reduce SLE disease activity, and a second Phase 3 trial, BLISS-76, is underway to confirm these results.

About the Collaboration with GSK

In August 2006, HGS and GSK entered into a definitive co-development and co-commercialization agreement under which HGS has responsibility for conducting the belimumab Phase 3 trials, with assistance from GSK. The companies will share equally in Phase 3/4 development costs, sales and marketing expenses, and profits of any product commercialized under the current agreement.

About Systemic Lupus Erythematosus

Systemic lupus erythematosus (SLE) is a chronic, life-threatening autoimmune disease. Approximately five million people worldwide, including approximately 1.5 million in the United States, suffer from various forms of lupus, including SLE. Lupus can occur at any age, but appears mostly in young people ages 15 to 45. About 90 percent of those diagnosed with lupus are women. African-American women are about three times more likely to develop lupus, and it is also more common in Hispanic, Asian and American Indian women. Symptoms may include extreme fatigue, painful and swollen joints, unexplained fever, skin rash and kidney problems. Lupus can lead to arthritis, kidney failure, heart and lung inflammation, central nervous system abnormalities, inflammation of the blood vessels and blood disorders. For more information on lupus, visit the Lupus Foundation of America at www.lupus.org, the Lupus Research Institute at www.lupusresearchinstitute.org, the National Institute of Arthritis and Musculoskeletal and Skin Diseases at www.niams.nih.gov, or Lupus Europe at www.elef.rheumanet.org.


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