On October 28, 2021 West Pharmaceutical Services, Inc. (NYSE: WST) reported its financial results for the third-quarter 2021 and updated full-year 2021 financial guidance (Press release, West Pharmaceutical Services, OCT 28, 2021, View Source [SID1234592128]).

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Third-Quarter 2021 Summary (comparisons to prior-year period)

Net sales of $706.5 million grew 28.9%; organic sales growth was 27.9%.
Reported-diluted EPS of $2.31 increased 112%.
Adjusted-diluted EPS of $2.06 increased 79%.
Company is raising full-year 2021 net sales guidance to a new range of $2.800 billion to $2.810 billion, compared to a prior range of $2.760 billion to $2.785 billion.
Company is raising full-year 2021 adjusted-diluted EPS guidance to a new range of $8.40 to $8.50, compared to a prior range of $8.05 to $8.20.
The Company also announced that its Board of Directors has approved a fourth-quarter 2021 dividend of $0.18 per share, a 5.9% increase over the $0.17 per share paid in each of the four preceding quarters. This is the twenty-ninth consecutive annual increase in the Company’s dividend. The dividend will be paid on November 17, 2021, to shareholders of record as of November 10, 2021.
"Adjusted-diluted EPS" and "organic sales growth" are Non-U.S. GAAP measurements. See discussion under the heading "Non-U.S. GAAP Financial Measures" in this release.

"We had robust growth in all three of our Proprietary Products market units, led by the sales of components in our High-Value Product (HVP) portfolio," said Eric M. Green, President and Chief Executive Officer. "This quarter’s strong performance came from both our base business, especially in the Biologics market unit, and COVID-19 related sales. Demand continues to grow for our premium offerings, such as NovaPure and FluroTec components, and, as a result, we are again increasing our planned capital expenditures, commencing next year, to expand HVP capacity at existing sites."

Proprietary Products Segment
Net sales grew by 36.9% to $577.0 million. Organic sales growth was 35.7%, with currency translation increasing sales growth by 120 basis points. HVP sales represented over 70% of segment sales and generated double-digit organic sales growth, led by customer demand for Westar, FluroTec and NovaPure components and Daikyo Crystal Zenith containers.

All three market units – Biologics, Generics and Pharma – had strong double-digit organic sales growth.

Contract-Manufactured Products Segment
Net sales grew by 2.4% to $129.7 million. Organic sales growth was 2.1% with currency translation increasing sales growth by 30 basis points. Segment performance was led by sales of healthcare-related medical devices.

Financial Highlights (first nine months of 2021)
Operating cash flow was $423.2 million, an increase of 30.7%. Capital expenditures were $176.9 million, an increase of 51.6% over the same period last year. Free cash flow (operating cash flow minus capital expenditures) was $246.3 million, an increase of 18.9%.

During the first nine months of 2021, the Company repurchased 479,000 shares for $137.1 million at an average share price of $286.23 under its share repurchase program.

Full-Year 2021 Financial Guidance

Full-year 2021 net sales are expected to be in a range of $2.800 billion to $2.810 billion, compared to a prior guidance range of $2.760 billion to $2.785 billion.
Organic sales growth is expected to be 28%, compared to a prior range of 24% to 25%.
Net sales guidance includes an estimated full-year 2021 benefit of $55 million based on current foreign exchange rates. This updated guidance is a reduction of $25 million, compared to a prior estimated full-year benefit of $80 million.
Full-year 2021 adjusted-diluted EPS is expected to be in a range of $8.40 to $8.50, compared to a prior range of $8.05 to $8.20.
Full-year adjusted-diluted EPS guidance range includes an estimated benefit of approximately $0.19 based on current foreign currency exchange rates. This updated guidance is a reduction of $0.08, compared to a prior estimated benefit of $0.27.
The revised guidance includes a $0.35 EPS positive impact of tax benefits from stock-based compensation from the first nine months of 2021.
For the remainder of the year, our EPS guidance range assumes a tax rate of approximately 23% and does not include potential tax benefits from stock-based compensation. Any tax benefits associated with stock-based compensation beyond those recorded in the first nine months of 2021 would provide a positive adjustment to our full-year EPS guidance.
Third-Quarter 2021 Conference Call
The Company will host a conference call to discuss the results and business expectations at 9:00 a.m. Eastern Time today. To participate on the call please dial 877-930-8295 (U.S.) or 253-336-8738 (International). The conference ID is 5587559.

A live broadcast of the conference call will be available at the Company’s website, www.westpharma.com, in the "Investors" section. Management will refer to a slide presentation during the call, which will be made available on the day of the call. To view the presentation, select "Presentations" in the "Investors" section of the Company’s website.

An online archive of the broadcast will be available at the website three hours after the live call and will be available through Thursday, November 4, 2021, by dialing 855-859-2056 (U.S.) or 404-537-3406 (International) and entering conference ID 5587559.

On October 28, 2021 argenx (Euronext & Nasdaq: ARGX), a global immunology company committed to improving the lives of people suffering from severe autoimmune diseases and cancer, reported its third quarter 2021 financial results and provided a business update and outlook for the remainder of the year (Press release, argenx, OCT 28, 2021, View Source [SID1234592127]).

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"With three parallel regulatory reviews in our key priority territories of the U.S., Japan and the EU and the simultaneous build-out of our respective commercial organizations, we are well-positioned for the planned global launch of efgartigimod for the treatment of generalized myasthenia gravis. In order to optimize our strategy to make efgartigimod available to patients in need across the world, we are pursuing innovative partnerships, such as the strategic partnership with Zai Lab in China and the agreement with Medison in Israel which we are excited to announce today," said Tim Van Hauwermeiren, Chief Executive Officer of argenx.

"As part of our commitment to becoming a fully-integrated, global immunology company, we are expanding our efgartigimod development plan to be in at least 15 indications by 2025 while also advancing a series of additional high-potential programs emerging from our Immunology Innovation Program. This includes a first-in-class C2 inhibitor, ARGX-117, which is on track to begin the first Phase 2 trial in multifocal motor neuropathy patients by the end of this year. Our growing commercial infrastructure along with our expanding pipeline ambitions provide considerable opportunity for argenx to deliver long-term, sustainable growth," concluded Mr. Van Hauwermeiren.

THIRD QUARTER 2021 AND RECENT BUSINESS UPDATE

Three global regulatory reviews ongoing for FcRn antagonist efgartigimod for the treatment of gMG

Biologics License Application (BLA) under review with U.S. Food and Drug Administration (FDA) with target action date of December 17, 2021 under Prescription Drug User Fee Act (PDUFA)
Marketing Authorization Application (J-MAA) under review with Japan’s Pharmaceuticals and Medical Devices Agency (PMDA) with anticipated approval in first quarter of 2022
MAA under review with European Medicines Agency (EMA) with anticipated approval in second half of 2022
Zai Lab on track with expected regulatory discussions with National Medical Products Administration (NMPA) for approval in China
Signed exclusive partnership agreement with Medison to commercialize efgartigimod for gMG in Israel; under agreement, Medison will also be responsible for seeking requisite regulatory approvals
Field teams onboard in U.S. and Japan, including 70 U.S. and 24 Japan sales representatives
New data from Phase 3 ADAPT trial of efgartigimod for the treatment of gMG presented during American Association of Neuromuscular and Electrodiagnostic Medicine (AANEM) Annual Meeting. Additional data to be presented at upcoming Myasthenia Gravis Foundation of America (MGFA) Scientific Session. Highlights of the new data points include:

Among acetylcholine receptor-antibody positive (AChR-Ab+) patients, minimal symptom expression or MSE (MG-ADL of 0 or 1) was achieved by 59.1% (26/44) of MG-ADL responders following efgartigimod treatment during first cycle and 44.4% (16/36) during second cycle, compared to 36.8% (7/19) and 0% (0/11), respectively, for placebo patients
Among acetylcholine receptor-antibody negative (AChR-Ab-) patients, MSE was achieved in 31.6% (6/19) of MG-ADL responders following efgartigimod treatment during first cycle compared to 15.8% (3/19) for placebo patients
gMG and pemphigus patients who were vaccinated for influenza and pneumococcus during and prior to efgartigimod treatment in recent clinical trials showed that the ability to mount an immune antibody response was not impacted
Consistent and statistically significant disease score improvements were demonstrated following efgartigimod treatment across ADAPT patient subtypes, regardless of concomitant medication or affected muscle domain (bulbar, ocular, respiratory, limb/gross motor)
Initial patient-reported data from MyRealWorld MG real-world evidence study (N = 144) showed that despite taking an average of 2.3 treatments to control symptoms, people living with gMG experience substantial negative physical, mental, social, and emotional impacts of the disease
92% of responders agreed there is a significant need for new gMG treatments and are hopeful for ones with fewer side effects (96%)
In a separate argenx-sponsored patient burden survey (N = 150), 51% of gMG patients stopped working entirely as a consequence of their disease

Efgartigimod is currently being evaluated in five ongoing registrational trials across four indications, including ADAPT-SC (gMG), ADHERE (chronic inflammatory demyelinating polyneuropathy or CIDP), ADVANCE (IV) and ADVANCE-SC (primary immune thrombocytopenia or ITP), and ADDRESS (pemphigus)

Enrollment complete in ADAPT-SC and ADVANCE (IV); topline data for both trials expected in first half of 2022
Full Phase 2 trial results of efgartigimod for treatment of pemphigus published in British Journal of Dermatology
Protocol finalized for registrational trial of efgartigimod for treatment of idiopathic inflammatory myopathy (myositis), following FDA consultation; trial on track to start in first quarter of 2022
Registrational trial of efgartigimod for treatment of bullous pemphigoid on track to start by end of 2021
ARGX-117, a first-in-class C2-inhibitor, has potential to be the next pipeline-in-a-product opportunity across multiple severe autoimmune indications

Phase 1 data showed favorable safety profile and potential for infrequent dosing schedules
Phase 2 trial for treatment of multifocal motor neuropathy (MMN) on track to start by end of 2021
Wim Parys, M.D. to retire as Chief Medical Officer (CMO) on March 31, 2022 and transition to member of Research and Development Committee of argenx Board of Directors

Succession plans underway for Luc Truyen, M.D., Ph.D., Vice President, Research & Development Operations at argenx, to assume CMO role in April 2022

DETAILS OF THE FINANCIAL RESULTS

As of January 1, 2021, the Company changed its functional and presentation currency from euro to U.S. dollar, which results in reporting financial highlights in U.S. dollar as compared to euro in prior periods. Historical financials have been converted at the average exchange rate of the related period.

Cash, cash equivalents and current financial assets totaled $2,534.0 million as of September 30, 2021, compared to $1,996.5 million on December 31, 2020. The increase in cash and cash equivalents and current financial assets resulted primarily from (i) the closing of a global offering, which resulted in the receipt of $1,092.1 million in net proceeds in February 2021, (ii) the net receipt of a $73.1 million non-creditable, non-refundable development cost-sharing payment received from Zai Lab as part of the strategic collaboration for efgartigimod in Greater China, (iii) the payment of $98.0 million related to the purchase of the priority review voucher from Bayer HealthCare Pharmaceuticals, and other net cash flows used in operating activities.

Total operating income increased by $446.9 million for the nine months ended September 30, 2021 to $494.6 million, compared to $47.7 million for the nine months ended September 30, 2020. The increase was primarily due to the recognition of the transaction price as a consequence of the termination of the collaboration agreement with Janssen, resulting in the recognition of $315.1 million and the closing of the strategic collaboration for efgartigimod with Zai Lab, resulting in the recognition of $151.9 million in collaboration revenue.

Research and development expenses increased by $136.9 million for the nine months ended September 30, 2021 to $413.3 million, compared to $276.4 million for the nine months ended September 30, 2020. The increase in the first nine months of 2021 resulted primarily from higher external research and development expenses, mainly related to the efgartigimod program in various indications and other clinical and preclinical programs. Furthermore, the research and development personnel expenses increased due to a planned increase in headcount and the increased costs of the share-based payment compensation plans related to the grant of stock options.

Selling, general and administrative expenses totaled $210.2 million for the nine months ended September 30, 2021, compared to $113.2 million for the nine months ended September 30, 2020. The increase resulted primarily from higher personnel expenses, including the costs of the share-based payment compensation plans related to the grant of stock options, and consulting fees linked to the preparation of a possible future commercialization of argenx’s lead product candidate efgartigimod.

The change in fair value on non-current financial assets amounted to $11.2 million for the nine months ended September 30, 2021, which is the result of the closing of a Series B financing round of AgomAb Therapeutics, for which argenx maintains a profit share in exchange for granting the license for the use of HGF-mimetic antibodies from the SIMPLE AntibodyTM platform.

Exchange losses totaled $36.0 million for the nine months ended September 30, 2021, compared to $65.3 million for the nine months ended September 30, 2020. As a result of the change in the Company’s functional and presentation currency, the exchange losses for the nine months ended September 30, 2021 are reflecting the unfavorable change in euro/U.S. dollar exchange rate, mainly attributable to unrealized exchange rate losses on cash, cash equivalents and current financial asset position in euro.

FINANCIAL GUIDANCE

Based on current plans to fund anticipated operating expenses and capital expenditures, argenx continues to expect its full-year 2021 cash burn to approximately double from 2020. The increased spend has supported the Company’s transition to an integrated immunology company, including the build-out of global commercial infrastructure and drug product inventory ahead of the expected launch of efgartigimod in gMG in the U.S, the advancement of its clinical-stage pipeline, including expected registrational trials of efgartigimod in six indications, and the continued investment in its Immunology Innovation Program. As argenx further expands its commercial infrastructure and differentiated pipeline of assets, it is expected that the spend associated with these activities will continue to increase.

EXPECTED 2022 FINANCIAL CALENDAR

March 3, 2022: FY 2021 financial results and business update
May 12, 2022: Q1 2022 financial results and business update
July 28, 2022: HY 2022 financial results and business update
October 27, 2022: Q3 2022 financial results and business update
CONFERENCE CALL DETAILS
The third quarter 2021 financial results and business update will be discussed during a conference call and webcast presentation today at 2:30 pm CEST/8:30 am ET. A webcast of the live call may be accessed on the Investors section of the argenx website at argenx.com/investors. A replay of the webcast will be available on the argenx website.

On October 28, 2021 Starpharma (ASX: SPL, OTCQX: SPHRY) reported that it has been invited to present at the 11th annual Partnership Opportunities in Drug Delivery (PODD) conference, which will take place virtually this year on 28‑29 October 2021 (Press release, Starpharma, OCT 28, 2021, View Source;mc_eid=bf52dd3418 [SID1234592126]).

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PODD brings together leaders in the Pharmaceutical Industry’s product development, R&D and drug delivery experts to discuss industry needs and latest trends. The conference also showcases innovative drug delivery technologies which could improve the delivery of pharmaceuticals.

The PODD conference includes expert speakers and attendees from leading pharmaceutical companies including AstraZeneca, Pfizer, Roche Pharma, Novartis, Genentech, Merck, and Sanofi. PODD also provides an excellent opportunity for business development activities through organised networking and a partnering tool for new, emerging, and established collaborations.

Starpharma will be represented by its VP of Business Development, Tony Eglezos, who will present an overview of the DEP platform and its benefits as part of the ‘Injectable Formulation Technologies’ stream. Starpharma’s presentation "Enhancing drug delivery: DEP dendrimer platform" is scheduled at 2:00pm (US Eastern Time) 28 October 2021, and includes:

Overview of Starpharma’s DEP strategy, and how the Company is leveraging its proprietary dendrimer platform to build high value products and partnerships that address significant unmet need
Therapeutic and commercial benefits of the DEP drug delivery platform in oncology and other therapeutic areas, including in combination therapies and new technology
Overview of Starpharma’s three internally developed phase 2 clinical programs
Use of DEP in the development of Antibody Drug Conjugates (ADCs), including the ability to provide additional flexibility in targeting
Use of DEP in the development of radiodiagnostic and radiotherapeutic conjugates, and the potential benefits of minimising off target toxicity and enhancing efficacy
Broad applicability therapeutic and commercial benefits of Starpharma’s DEP platform
Starpharma will also be conducting partnering discussions with other pharmaceutical companies attending the conference.

On October 28, 2021 Triumvira Immunologics ("Triumvira"), a clinical-stage company developing novel, targeted autologous and allogeneic T cell therapeutics that co-opt the natural biology of T cells to treat patients with solid tumors, reported that it has appointed Deyaa Adib, M.D., to serve as the company’s Chief Medical Officer, effective immediately (Press release, Triumvira Immunologics, OCT 28, 2021, View Source [SID1234592121]). Dr. Adib will report to President and CEO Dr. Paul Lammers and will succeed Dr. Sabine Chlosta.

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As a seasoned industry leader, Dr. Adib has over 24 years of medical oncology experience in the biotechnology and pharmaceutical industries, including seven successful registrations across solid tumor and hematologic malignancy indications. He previously served as acting chief medical officer at Rain Therapeutics, where he built the oncology portfolio leading to a successful IPO, and vice president of late-stage development at Blueprint Medicines advancing the development of avapritinib approved for gastrointestinal stromal tumor and advanced systemic mastocytosis. Dr. Adib also served as global therapeutics head for solid tumors at Baxalta, advancing the development of imalumab in colorectal cancer, non-small cell lung cancer (NSCLC), and ovarian cancer, and licensing nanoliposomal irinotecan that was subsequently approved for pancreatic cancer. In this role, he also led the efforts to secure licensing and development of a CD-19 target with Precision Biosciences in B cell malignancies and PD1, LAG3, TIM3 solid tumor targets with Symphogen, a Servier company. He also served as head of hematologic malignancies at ARIAD Pharmaceuticals (now part of Takeda) leading the global clinical program for ponatinib dose-finding and line extension in chronic myeloid leukemia.

On October 28, 2021 Synaffix B.V., a biotechnology company focused on commercializing its clinical-stage platform technology for the development of antibody-drug conjugates (ADCs) with best-in-class therapeutic index reported that the Company was awarded Best Poster at Hanson Wade’s 2021 World ADC Conference (Press release, Synaffix, OCT 28, 2021, View Source [SID1234592120]). Separately, Synaffix was also awarded ‘Runner-Up’ for the Best ADC Platform Technology.

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New data presented in the winning poster, titled: "GlycoConnect ADCs Based on Topoisomerase 1 Inhibitor Exatecan (SYNtecan E) Show Excellent In Vivo Efficacy and Tolerability Data" demonstrated complete tumor regression and high tolerability of SYNtecan E based ADCs, and underscores the ability of Synaffix’s technologies to enable best-in-class, next generation ADCs.

This marks the fifth year that Synaffix’ groundbreaking ADC platform technology has been acknowledged at the World ADC Awards ceremony as industry-leading, by a judging panel of world-renowned ADC experts. The 2021 finalists were shortlisted through a voting pool of over 2,500 individuals, with a panel of distinguished, independent industry experts from across the ADC field assessing each finalist to decide the winners.

Prof. Floris van Delft, CSO of Synaffix, said: "The SYNtecan E linker-payload represents a transformational innovation that emerged from our own laboratories here in the Netherlands. This appreciation by our industry peers serves as yet another testament to the high-quality science that underlies our broader ADC platform technology offering and we look forward to continuing the close collaboration with our various partners as this linker-drug enters the clinical development phase."