I-Mab Biopharma and MorphoSys Announce First Patient Dosed in Phase 3 Clinical Study of TJ202/MOR202 in Multiple Myeloma

On April 29, 2019 I-Mab Biopharma (I-Mab), a China-based clinical stage biopharmaceutical company exclusively focused on the development of innovative biologics in immuno-oncology and autoimmune diseases, and MorphoSys AG (FSE: MOR; Prime Standard Segment, MDAX & TecDAX;NASDAQ: MOR), reported that the first patient has been dosed in a phase 3 randomized and multi-center clinical study in Taiwan to evaluate MorphoSys’s investigational human CD38 antibody TJ202/MOR202 in combination with lenalidomide in patients with relapsed or refractory multiple myeloma (Press release, I-Mab Biopharma, APR 29, 2019, View Source [SID1234535448]). I-Mab has the exclusive rights for development and commercialization of TJ202/MOR202 in mainland China, Taiwan, Hong Kong and Macao.

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"The initiation of our first phase 3 trial represents another important milestone in advancing TJ202/MOR202 towards registration with the hope of providing more therapeutic options for MM patients globally. With planned enrollment of 291 patients, this will be a broad trial of this second most common blood cancer worldwide," said Dr. Joan Shen, M.D., Head of R&D at I-Mab. "In parallel with our pivotal phase 2 trial of TJ202/MOR202 in combination with dexamethasone, the phase 3 study will further assess the efficacy of TJ202/MOR202 as a potential second line treatment in MM."

Under I-Mab’s fast-to-market development strategy, the phase 3 study, if successful, could lead to a biologics license application (BLA) in Greater China. The randomized, open-label, parallel-controlled, multicenter study will be conducted in mainland China and Taiwan to evaluate the efficacy and safety of the combination of TJ202/MOR202 plus lenalidomide (LEN) and dexamethasone (DEX) versus the combination of LEN and DEX in patients with relapsed or refractory MM who received at least one prior line of treatment. The primary endpoint is to evaluate the progression-free survival (PFS) comparing the efficacy of TJ202/MOR202 plus LEN/DEX versus LEN/DEX.

The dosing of the first patient triggers a milestone payment of USD 3 million to MorphoSys.

"We are delighted that our partner I-Mab has started a phase 3 trial of TJ202/MOR202 in combination with lenalidomide in Asia in addition to the ongoing phase 2 trial of MOR202 in combination with dexamethasone. We see a high medical need for the treatment of patients with multiple myeloma in the Chinese region and look forward to supporting I-Mab in developing this investigational compound for these patients," said Dr. Malte Peters, Chief Development Officer of MorphoSys AG.

With MorphoSys’s support through a licensing agreement in November 2017, I-Mab is currently leading the clinical development of TJ202/MOR202 in Greater China, including mainland China, Hong Kong, Macao and Taiwan. In addition to Taiwan, I-Mab has filed an investigational new drug (IND) application to China’s National Medical Products Administration in August 2018. Previously on March 20, 2019, I-Mab and MorphoSys announced the first patient dosing of TJ202/MOR202 in a phase 2 multi-center clinical study in Taiwan in patients with relapsed or refractory multiple myeloma.

About TJ202/MOR202
TJ202/MOR202 is an investigational human monoclonal antibody derived from MorphoSys’s HuCAL antibody technology. The antibody is directed against CD38 on the surface of multiple myeloma cells, which has been characterized as one of the most strongly and uniformly expressed antigens on the surface of malignant plasma cells. According to its suggested mode of action, the antibody recruits cells of the body’s immune system to kill the tumor through antibody-dependent cellular cytotoxicity (ADCC) and antibody-dependent cellular phagocytosis (ADCP). The antibody does not involve complement dependent cytotoxicity, or CDC, an additional immune mechanism involved in tumor cell killing. Scientific research suggest that an anti-CD38 antibody may have therapeutic potential also in other cancers as well as autoimmune diseases. Based on an exclusive regional licensing agreement signed in late 2017, I-Mab owns the exclusive rights for development and commercialization of TJ202/MOR202 in mainland China, Taiwan, Hong Kong and Macao.

Medicure Reports Financial Results for Quarter and Year Ended December 31, 2018

On April 29, 2019 Medicure Inc. ("Medicure" or the "Company") (TSXV:MPH, OTC:MCUJF), a pharmaceutical company, reported its results from operations for the quarter and year ended December 31, 2018 (Press release, Medicure, APR 29, 2019, View Source [SID1234535447]).

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Year Ended December 31, 2018 Highlights:

Recorded total net revenue from the sale of products of $29.1 million during the year ended December 31, 2018 compared to $27.1 million for the year ended December 31, 2017;
Recorded total net revenue from the sale of AGGRASTAT of $28.5 million during the year ended December 31, 2018 compared to $27.1 million for the year ended December 31, 2017;
Net income for the year ended December 31, 2018 was $3.9 million, compared to net income of $43.4 million for the year ended December 31, 2017, which includes the gain on the sale of the Apicore business which occurred in October 2017;
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA)1 for the year ended December 31, 2018 was $0.2 million compared to adjusted EBITDA of $4.8 million for the year ended December 31, 2017 and
Diversified product portfolio with US FDA ANDA approval of Sodium Nitroprusside and acquisition of US marketing rights to ZYPITAMAGTM.
Financial Results

Net revenues for the year ended December 31, 2018 were $29.1 million compared to $27.1 million for the year ended December 31, 2017. Net revenues from AGGRASTAT for the year ended December 31, 2018 were $28.5 million compared to $27.1 million for the year ended December 31, 2017. Additionally, ZYPITAMAGTM, which was launched commercially by the Company in 2018, contributed $0.7 million of net revenues for the year ended December 31, 2018.

Net revenues from AGGRASTAT for the three months ended December 31, 2018 were $8.2 million compared to $5.0 million for the three months ended December 31, 2017.

The Company continues to experience an increase in patient market share held by AGGRASTAT and an increase in the number of new hospital customers using the product leading to the highest hospital demand for AGGRASTAT in the Company’s history, which is partially offset by increased price competition as a result of increased generic competitors, which resulted in lower discounted prices for AGGRASTAT throughout 2018. An increased volume of AGGRASTAT sold and a weaker Canadian dollar compared to its US counterpart resulted in the revenue increases experienced in 2018.

Medicure continues to focus on expanding the customer base for AGGRASTAT and growing the sales of ZYPITAMAGTM (pitavastatin). Diversification of revenues remains an important aspect of the Company’s focus with the Company signing a marketing agreement for ReDSTM in January 2019 and the expected launch of Sodium Nitroprusside in mid-2019.

Adjusted EBITDA for the year ended December 31, 2018 was $0.2 million compared to $4.8 million for the year ended December 31, 2017. The decrease in adjusted EBITDA for the year is the result of the higher selling, general and administration expenses caused by the incurrence of additional costs relating to the commercial organization due to the launch of ZYPITAMAGTM and higher research and development expenses related to the Company’s product development pipeline. Adjusted EBITDA for the three months ended December 31, 2018 was negative $2.0 million compared to negative $0.6 million for the three months ended December 31, 2017.

Net income for the year ended December 31, 2018 was $3.9 million or $0.25 per share. This compares to net income of $43.4 million or $2.78 per share for the year ended December 31, 2017, which includes income of $11.5 million or $0.74 per share from continuing operations and income from discontinued operations of $31.9 million or $2.04 per share. Discontinued operations includes the operations of Apicore and the gain on the sale of the Apicore business.

Net income for the three months ended December 31, 2018 was $1.5 million or $0.10 per share, compared to net income of $51.4 million or $2.81 per share for the three months ended December 31, 2017, primarily relating to the gain on the sale of the Apicore business.

At December 31, 2018, the Company had unrestricted cash and short-term investments totaling $71.9 million compared to $5.3 million as of December 31, 2017. The increase in cash is due to the proceeds received from the sale of the Apicore business in October 2017, which were received in 2018. Cash flows from operating activities for the year ended December 31, 2018 totaled $0.7 million.

All amounts referenced herein are in Canadian dollars unless otherwise noted.

Notes

(1) The Company defines EBITDA as "earnings before interest, taxes, depreciation, amortization and other income or expense" and Adjusted EBITDA as "EBITDA adjusted for non-cash and non-recurring items". The terms "EBITDA" and "Adjusted EBITDA", as it relates to the quarters and years ended December 31, 2018 and 2017 results prepared using International Financial Reporting Standards ("IFRS"), do not have any standardized meaning according to IFRS. It is therefore unlikely to be comparable to similar measures presented by other companies.

Conference Call Info:

Topic: Medicure’s Fiscal Year End 2018 Results

Call date: Tuesday, April 30, 2019

Time: 7:30 AM Central Time (8:30 AM Eastern Time)

Canada toll-free: 1 (888) 465-5079 Canada toll: 1 (416) 216-4169

United States toll-free: 1 (888) 545-0687

Passcode: 8925377#

Webcast: This conference call will be webcast live over the internet and can be accessed from the Medicure investor relations page at the following link: View Source

You may request international country-specific access information by e-mailing the Company in advance. Management will accept and answer questions related to the financial results and operations during the question-and-answer period at the end of the conference call. A recording of the call will be available following the event at the Company’s website.

Daiichi Sankyo Announces Two Lancet Oncology Publications of Phase 1 Dose Expansion Results of [Fam-] Trastuzumab Deruxtecan in HER2 Positive Metastatic Breast and Gastric Cancer

On April 29, 2019 Daiichi Sankyo Company, Limited (hereafter, Daiichi Sankyo) and AstraZeneca reported the publication of two manuscripts in The Lancet Oncology reporting long-term phase 1 safety and efficacy results of [fam-] trastuzumab deruxtecan (DS-8201) (Press release, Daiichi Sankyo, APR 29, 2019, https://www.prnewswire.com/news-releases/daiichi-sankyo-announces-two-lancet-oncology-publications-of-phase-1-dose-expansion-results-of-fam–trastuzumab-deruxtecan-in-her2-positive-metastatic-breast-and-gastric-cancer-300840146.html [SID1234535446]). The investigational HER2 targeting antibody drug conjugate (ADC) was evaluated in heavily pretreated patients with HER2 positive metastatic breast cancer and gastric cancer.

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HER2 Positive Breast Cancer Results
The first manuscript reports efficacy results for 115 patients who received at least one dose of [fam-] trastuzumab deruxtecan, of which 111 were evaluable for confirmed response. These patients with HER2 positive metastatic breast cancer previously treated with ado-trastuzumab emtansine (T-DM1) received [fam-] trastuzumab deruxtecan at a recommended expansion dose of 5.4 or 6.4 mg/kg in the dose escalation or dose expansion parts of the phase 1 study. Patients enrolled in this part of the study had a median of seven prior anticancer regimens, including T-DM1 and trastuzumab, and in 86 percent of cases, pertuzumab.

A confirmed objective response rate of 59.5 percent [95 percent CI: 49.7-68.7] and a disease control rate of 93.7 percent [95 percent CI: 87.4-97.4] was observed with [fam-] trastuzumab deruxtecan. Median duration of response was 20.7 months (range 0.0-21.8), median progression-free survival was 22.1 months (range 0.8-27.9), and median overall survival has not yet been reached in the study. Fifty-five (48 percent) patients remain on treatment with [fam-] trastuzumab deruxtecan, as of data cut-off on August 10, 2018.

"For patients with HER2 positive metastatic breast cancer that progresses after trastuzumab, pertuzumab, and T-DM1, optimal treatment is not clearly defined and choices may be limited," said Kenji Tamura, MD, PhD, Department of Breast and Medical Oncology National Cancer Center Hospital, Tokyo, Japan, and lead author on the study. "These results demonstrate preliminary clinically meaningful response rates with an impressive duration of response, supporting further development and suggesting a potential role for [fam-] trastuzumab deruxtecan as a HER2 targeted therapy option in this setting."

Safety results for 115 patients with HER2 positive metastatic breast cancer, who received at least one dose of [fam-] trastuzumab deruxtecan 5.4 or 6.4 mg/kg in part one or part two of the study also were reported. The most common adverse events (≥30 percent, any grade) included nausea, decreased appetite, vomiting, alopecia, fatigue, anemia, diarrhea, and constipation. Fifty (50.0) percent of patients experienced an adverse event grade ≥3, and 19.0 percent had a serious adverse event, including two previously reported cases of grade 5 drug-related pneumonitis. Any reported cases of interstitial lung disease (ILD)/pneumonitis in the [fam-] trastuzumab deruxtecan clinical development program are evaluated by an independent adjudication committee, and a formal monitoring and management program is in place with ongoing analyses to help optimally characterize the risk. A presentation of ILD risk characterization at the San Antonio Breast Cancer Symposium in December 2018 in patients with metastatic breast cancer treated at the recommended dose of 5.4 mg/kg showed an overall incidence of 5.6 percent, with the majority of cases being grades 1 and 2, and 1.1 percent grade 3 and above, including one (1) case of grade 5 (Poster # P6-17-06).1

Summary of Results

Total evaluablei

(n=114)

Confirmed Objective Response Rate (ORR)ii, iii

(95% CI)

59.5%

(49.7-68.7)

Disease Control Rate (DCR)ii, iv

(95% CI)

93.7%

(87.4-97.4)

Duration of Response (DOR)v

Median in months

(95% CI)vi

20.7

(0.0-21.8)vi

Progression Free Survival (PFS)

Median in months

(95% CI)vi

22.1

(0.8 – 27.9)vi

i The activity evaluable set included all patients who received at least one dose of trastuzumab deruxtecan at 5·4 mg/kg or 6·4 mg/kg and for whom both baseline and post-treatment activity data were available.

ii There were 111 patients who had two or more post baseline scans, had progressive disease, or discontinued treatment for any reason before second postbaseline scan and were considered evaluable for confirmed response.

iii Objective response was calculated as the proportion of patients showing complete response or partial response for a minimum of 5 weeks from the first dosing date.

iv Disease control was calculated as the proportion of patients demonstrating complete response, partial response, or stable disease for a minimum of 5 weeks from the first dosing date.

v Duration of response was measured from the time at which complete response or partial response criteria are first met until the first date of objectively documented progressive disease.

vi Censored observation indicated with plus (+).

HER2 Positive Gastric Cancer Results
The second manuscript reports results for 44 patients with HER2 positive advanced gastric or gastro-esophageal junction cancer previously treated with trastuzumab who received [fam-] trastuzumab deruxtecan at a recommended expansion dose of 5.4 or 6.4 mg/kg in the dose escalation or dose expansion parts of the study. These patients had a median of three prior anticancer regimens including trastuzumab.

A confirmed objective response rate of 43.2 percent [95 percent CI: 28.3, 59.0] and a disease control rate of 79.5 percent [95 percent CI: 64.7-90.2] were seen with [fam-] trastuzumab deruxtecan. The median duration of response was 7.0 months (range 4.4-16.6), median progression free survival was 5.6 months [95 percent CI: 3.0-8.3], and median overall survival was 12.8 months (range 1.4-25.4). Three (3) patients remain on treatment with [fam-] trastuzumab deruxtecan as of data cut-off on August 10, 2018.

"These results are encouraging given the limited options for patients with advanced HER2 positive gastric cancer that progresses after initial treatment regimens including trastuzumab," said lead study author Kohei Shitara, MD, National Cancer Center Hospital East, Chiba, Japan. "There are no other anti-HER2 therapies approved for gastric cancer beyond trastuzumab, and these data support further study of [fam-] trastuzumab deruxtecan in these patients."

Safety results for the 44 patients with HER2 positive gastric or gastro-esophageal junction cancer who received at least one dose of [fam-] trastuzumab deruxtecan 5.4 or 6.4 mg/kg in part one or part two of the study also were presented. The most common adverse events (≥30 percent, any grade) included nausea, decreased appetite, white blood cell count decrease, anemia, platelet count decrease, and constipation. Sixty-four (64.0) percent of patients experienced an adverse event grade ≥3, and 25.0 percent had a serious adverse event. There were two deaths due to TEAEs, (one due to pneumonia and one due to progression of disease), and neither were considered drug-related.

Summary of Results

Total evaluablevii

(n=44)

Confirmed Objective Response Rate (ORR)viii

(95% CI)

43.2%

(28.3-59.0)

Disease Control Rate (DCR)ix

(95% CI)

79.5%

(64.7-90.2)

Duration of Response (DOR)x

Median in months

(95% CI)xi

7.0

(4.4-16.6)xi

Progression Free Survival (PFS)

Median in months

(95% CI)xi

5.6

(3.0-8.3)xi

Overall Survival (OS)

Median in months

(95% CI)xi

12.8

(1.4-25.4)xi

vii The activity evaluable set included all patients who received at least one dose of trastuzumab deruxtecan at 5·4 mg/kg or 6·4 mg/kg and for whom both baseline and post-treatment activity data were available.

viii Objective response is calculated as the proportion of patients showing complete response or partial response for a minimum of 5 weeks from the first dosing date.

ix Disease control was calculated as the proportion of patients showing complete response, partial response, or stable disease for a minimum of 5 weeks from the first dosing date.

x Duration of response was measured from the time at which complete response or partial response criteria are first met until the first date of objectively documented progressive disease.

xi Censored observation indicated with plus (+).

"These long-term phase 1 results support our ongoing pivotal development program with [fam-] trastuzumab deruxtecan in HER2 positive metastatic breast and gastric cancers, where significant unmet treatment needs remain," said Gilles Gallant, BPharm, PhD, FOPQ, Vice President, DS-8201 Global Team Leader, Oncology Research and Development, Daiichi Sankyo. "Our pivotal phase 2 DESTINY-Breast01 study has completed enrollment and our phase 3 DESTINY-Breast02 and DESTINY-Breast03 trials are underway to further evaluate [fam-] trastuzumab deruxtecan in HER2 positive metastatic breast cancer. We also are enrolling patients with advanced HER2 positive gastric cancer previously treated with trastuzumab in the pivotal phase 2 DESTINY-Gastric01 study."

"These results reinforce our belief that [fam-] trastuzumab deruxtecan could become a transformative new medicine for the treatment of HER2 positive breast and gastric cancers," said Hesham Abdullah, Vice President, Head of Late-Stage Immuno-Oncology Development, Research and Development, Oncology, AstraZeneca. "The encouraging response rates and quality of the duration of response in this heavily pretreated and difficult-to-treat setting demonstrate the value this potential treatment can bring to patients with unmet medical needs."

About HER2
HER2 is a tyrosine kinase receptor growth-promoting protein found on the surface of some cancer cells that is associated with aggressive disease and poorer prognosis.2,3 To be considered HER2 positive, tumor cancer cells are usually tested by one of two methods: immunohistochemistry (IHC) or fluorescent in situ hybridization (FISH). IHC test results are reported as: 0, IHC 1+, IHC 2+, or IHC 3+. A finding of IHC 3+ is considered HER2 positive, and a finding of IHC 2+ is borderline and typically is confirmed by a positive FISH test.5

Unmet Need in HER2 Positive Breast and Gastric Cancer
Approximately one in five breast and gastric cancers (20 percent) are HER2 positive.4,5 Several unmet treatment needs remain today in HER2 positive metastatic breast cancer. Many HER2 positive breast cancers eventually advance to the point where no currently approved HER2 targeting therapy continues to control the disease;6 after treatment with trastuzumab, pertuzumab, and T-DM1, optimal treatment is less clearly defined and choices may be limited.7

HER2 expressing gastric cancer also is an area of unmet medical need, where treatment advances have been limited, largely due to the genetic complexity and heterogeneity of the disease.8 Currently, there are no approved HER2 targeting therapies for patients with HER2-positive advanced gastric cancer that progresses after treatment with a trastuzumab regimen.

About the [Fam-] Trastuzumab Deruxtecan Phase 1 Study
An open-label, two-part phase 1 study is currently evaluating [fam-] trastuzumab deruxtecan in patients with advanced/unresectable or metastatic solid tumors that are refractory or intolerant to standard treatment, or for whom no standard treatment is available. The primary objectives of the dose escalation part of the study were to assess the safety, tolerability, and activity of [fam-] trastuzumab deruxtecan and determine the recommended dose for expansion. These data were published in The Lancet Oncology.9

In the dose expansion part of the study, [fam-] trastuzumab deruxtecan is being evaluated at two recommended doses (5.4 mg/kg and 6.4 mg/kg) in five patient cohorts, including HER2 positive advanced or metastatic breast cancer and gastric cancer, HER2 low expressing breast cancer, and other HER2 expressing solid tumors. Enrollment for patients with HER2 positive breast cancer and HER2 positive gastric/gastro-esophageal cancer has completed. Overall, 292 patients have been enrolled into this phase 1 study of [fam-] trastuzumab deruxtecan. For more information about the study, visit ClinicalTrials.gov.

About [Fam-] Trastuzumab Deruxtecan
[Fam-] trastuzumab deruxtecan (DS-8201; [fam-] trastuzumab deruxtecan in U.S. only; trastuzumab deruxtecan in other regions of world) is the lead product in the investigational ADC Franchise of the Daiichi Sankyo Cancer Enterprise and the most advanced program in AstraZeneca’s ADC Scientific platform.

ADCs are targeted cancer medicines that deliver cytotoxic chemotherapy ("payload") to cancer cells via a linker attached to a monoclonal antibody that binds to a specific target expressed on cancer cells. Designed using Daiichi Sankyo’s proprietary DXd ADC technology, [fam-] trastuzumab deruxtecan is comprised of a humanized HER2 antibody attached to a novel topoisomerase I inhibitor payload by a tetrapeptide-based linker. It is designed to target and deliver chemotherapy inside cancer cells and reduce systemic exposure to the cytotoxic payload (or chemotherapy), compared to the way chemotherapy is commonly delivered.

A broad and comprehensive development program with [fam-] trastuzumab deruxtecan is underway in North America, Europe, and Asia, including five pivotal studies. [Fam-] trastuzumab deruxtecan is in pivotal phase 3 development in previously treated HER2 low expressing metastatic breast cancer versus investigator’s choice (DESTINY-Breast04); phase 3 development in HER2 positive metastatic breast cancer versus ado-trastuzumab emtansine (T-DM1) (DESTINY-Breast03); and phase 3 development in HER2 positive metastatic breast cancer versus investigator’s choice post T-DM1 (DESTINY-Breast02). [Fam-] trastuzumab deruxtecan also is in pivotal phase 2 development for HER2 positive metastatic breast cancer resistant or refractory to T-DM1 (DESTINY-Breast01); pivotal phase 2 development for HER2 positive advanced gastric cancer resistant or refractory to trastuzumab (DESTINY-Gastric01); phase 2 development for HER2 expressing advanced colorectal cancer; phase 2 development for non-squamous HER2 overexpressing or HER2 mutated metastatic NSCLC; and, phase 1 development in combination with nivolumab for HER2 expressing metastatic breast and bladder cancer.

[Fam-] trastuzumab deruxtecan has been granted Breakthrough Therapy designation for the treatment of patients with HER2 positive, locally advanced or metastatic breast cancer who have been treated with trastuzumab and pertuzumab and have disease progression after T-DM1, and Fast Track designation for the treatment of HER2 positive unresectable and/or metastatic breast cancer in patients who have progressed after prior treatment with HER2 targeted therapies, including T-DM1 by the U.S. Food and Drug Administration (FDA). [Fam-] trastuzumab deruxtecan has received SAKIGAKE Designation for the treatment of HER2 positive advanced gastric or gastroesophageal junction cancer by the Japan Ministry of Health, Labour and Welfare (MHLW).

[Fam-] trastuzumab deruxtecan is an investigational agent that has not been approved for any indication in any country. Safety and efficacy have not been established.

About the Collaboration between Daiichi Sankyo and AstraZeneca
In March 2019, Daiichi Sankyo and AstraZeneca entered into a global collaboration to jointly develop and commercialize [fam-] trastuzumab deruxtecan as a medicine worldwide, except in Japan where Daiichi Sankyo will maintain exclusive rights. Daiichi Sankyo will be solely responsible for manufacturing and supply.

About Daiichi Sankyo Cancer Enterprise
The mission of Daiichi Sankyo Cancer Enterprise is to leverage our world-class, innovative science and push beyond traditional thinking to create meaningful treatments for patients with cancer. We are dedicated to transforming science into value for patients, and this sense of obligation informs everything we do. Anchored by three pillars including our investigational Antibody Drug Conjugate Franchise, Acute Myeloid Leukemia Franchise and Breakthrough Science, we aim to deliver seven distinct new molecular entities over eight years during 2018 to 2025. Our powerful research engines include two laboratories for biologic/immuno-oncology and small molecules in Japan, and Plexxikon Inc., our small molecule structure-guided R&D center in Berkeley, CA. Compounds in pivotal stage development include: [fam-] trastuzumab deruxtecan, an antibody drug conjugate (ADC) for HER2 expressing breast, gastric and other cancers; quizartinib, an oral selective FLT3 inhibitor, for newly-diagnosed and relapsed/refractory FLT3-ITD acute myeloid leukemia (AML); and pexidartinib, an oral CSF1R inhibitor, for tenosynovial giant cell tumor (TGCT). For more information, please visit: www.DSCancerEnterprise.com.

WuXi AppTec Announces Strong First-Quarter 2019 Results

On April 29, 2019 WuXi AppTec Co., Ltd. (stock code: 603259.SH / 02359.HK), a leading global pharmaceutical and medical device open-access capability and technology platform company with global operations, reported its financial results for first quarter 2019 (Press release, WuXi AppTec, APR 29, 2019, View Source [SID1234535445]).

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All financials disclosed in this press release are prepared in accordance with International Financial Reporting Standards (or "IFRS").

The 2019 First Quarterly Report of the Company has not been audited.

Financial Highlights

Strong revenue growth of 29.3% year-over-year to RMB2,769 million.
Gross profit grew 27.2% year-over-year to RMB1,055 million. Gross profit margin was 38.1%.[2]
Net profit attributable to owners of the Company increased 33.0% year-over-year to RMB386 million.
Adjusted non-IFRS net profit attributable to owners of the Company grew 28.3% year-over-year to RMB519 million.
Diluted EPS and adjusted non-IFRS EPS increased by 6.5% and 4.7%, respectively.[3]
Management Comment

"We are off to a solid start in 2019 with strong growth momentum," said Dr. Ge Li, Chairman and CEO of WuXi AppTec. "Our strong revenue growth was broad-based across all business segments, especially our clinical research and other CRO services. While achieving good revenue growth, we continuously invested in new capabilities and capacities, including talent, laboratories, manufacturing facilities and technologies."

"In the first quarter of 2019, our subsidiary WuXi STA’s new drug product manufacturing facility in Shanghai, since its inception at the end of 2018, has passed its first GMP inspection by the European Medical Products Agency (MPA). In addition, three of our Laboratory Testing Division’s facilities, Drug Safety Testing, Bioanalytical Services and Medical Device Testing, completed regulatory inspections by the US FDA (Food and Drug Administration), OECD (Organization for Economic Co-operation and Development), and CNAS (China National Accreditation Service for Conformity Assessment), all with excellent results. Moreover, our newly built Qidong research and development center began operation, and will become an extension of our Shanghai headquarter in the future."

"We believe these investments will build on our solid foundation sustaining our growth. At WuXi AppTec, we will continue to relentlessly enhance our platform with the most comprehensive and cutting-edge technologies so we can fulfill our dream that ‘every drug can be made and every disease can be treated’." Dr. Li concluded.

First-Quarter 2019 Results

First-quarter 2019 revenue increased 29.3% year-over-year to RMB2,769 million. We experienced strong revenue growth across all business segments, especially for our clinical research and other CRO services.
First-quarter 2019 gross profit increased 27.2% year-over-year to RMB1,055 million. Gross profit margin was 38.1%, slightly lower than 38.7% in first-quarter 2018[4] primarily given we continued to enhance capabilities and build capacity. We also paid more incentives, including share-based compensation, to our employees, to sustain talent.
First-quarter 2019 net profit attributable to owners of the Company increased 33.0% year-over-year to RMB386 million. We experienced significant synergies across business segments and increased customer conversion rate by fully leveraging the strength of our "integrated end-to-end" R&D services platform.
First-Quarter 2019 Non-IFRS Results

First-quarter 2019 non-IFRS net profit attributable to owners of the Company increased 32.0% year-over-year to RMB523 million. This adjusts for RMB32 million share-based payments, RMB99 million foreign exchange-related effects and RMB5 million amortization of intangible assets acquired.
First-Quarter 2019 Adjusted Non-IFRS Results

Excluding a further RMB10 million realized and unrealized gains from our venture investments and RMB6 million losses from our joint ventures, first-quarter 2019 adjusted non-IFRS net profit attributable to owners of the Company increased 28.3% year-over-year to RMB519 million.

EirGenix, Inc. Enters Into Global License Agreement for the Commercialization of its Biosimilar Drug EG12014

On April 29, 2019 EirGenix, Inc. reported that it has entered into a license agreement with global generic and biosimilar drug manufacturer Sandoz AG, granting an exclusive license to Sandoz for right of commercialization of EirGenix ‘s breast cancer biosimilar drug, EG12014 (Trastuzumab Biosimilar to Roche / Genentech’s Herceptin) globally with the exception of Taiwan and mainland China (Press release, EirGenix, APR 29, 2019, View Source [SID1234535444]). According to the terms of the agreement, EirGenix will receive an upfront payment, milestone payments, and is entitled to receive profit share payments for sales in the territory. The signing of this agreement is one of the most significant achievements for EirGenix’s product development business since the company’s establishment, and represents an exciting moment for Taiwan’s biotech industry.

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Sandoz is a Novartis division, and a global leader in generic pharmaceuticals and biosimilars and a pioneer in the emerging field of prescription digital therapeutics. Sandoz has a long history and extensive experience in the development and commercialization of biosimilar and cancer drugs in markets such as Europe and the United States. The collaboration between EirGenix and Sandoz will leverage the combined strength of EirGenix ‘s R&D of biosimilar drugs, with Sandoz’s substantial experience in global drug sales and advantages in market access. This collaboration will be conducive to EirGenix ‘s market development and expansion in the pharmaceutical market and will be extremely positive for EirGenix ‘s financial and business development as the collaboration will enhance the visibility and competitiveness of its products in the global market, which would thereby improve the company’s overall operating scale and profitability. With the successful market entry of EG12014, HER2-positive breast cancer patients will benefit from more treatment options.

EG12014 (Trastuzumab biosimilar) has entered a global Phase 3 clinical trial (Study No.: EGC002) which has been to date approved to conduct such trial by ten regulatory authorities including the U.S. FDA, Taiwan TFDA, as well as the authorities in Russia, Belarus, Ukraine, South Africa, Georgia, South Korea, India and Chile. A total of 800 breast cancer patients will be enrolled for this Phase 3 clinical trial, and the primary endpoint analysis is expected to be completed in the second half of 2020 to support the product registration. According to Roche’s 2018 annual report, Herceptin’s global sales amounted to 6.982 billion Swiss Francs. Herceptin tops the list in drug spending by Taiwan’s National Health Insurance, with an annual expenditure of nearly NT$3 billion.

EirGenix, Inc. has utilized reverse engineering technology in developing its four biosimilar products. In addition to the two antibody biosimilars for the treatment of HER2-positive breast cancers, there are two other anti-angiogenesis biosimilar drugs in development. EirGenix recently opened its commercial mass production facility in Zhubei, Taiwan, and aims to complete multiple batches of commercial-scale productions in 2019. In terms of CDMO business, it already reached break-even point in the first-half of 2016 and the revenue grew more than 35 fold since 2013 and is expected to steadily drive its revenue growth in the coming year. It is without a doubt that through its diligent pursuit of rapid business innovation, EirGenix has become one of the fastest growing companies in Taiwan’s biotech/pharmaceutical industry.