Quest Diagnostics To Release First Quarter 2020 Financial Results On April 22

On April 7, 2020 Quest Diagnostics Incorporated (NYSE: DGX), the world’s leading provider of diagnostic information services, reported that it will report first quarter 2020 results on Wednesday, April 22, 2020, before the market opens (Press release, Quest Diagnostics, APR 7, 2020, View Source [SID1234556186]). It will hold its quarterly conference call to discuss the results beginning at 8:30 a.m. Eastern Time on that day.

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The company also will provide an update on the impact of the COVID-19 pandemic. On March 31, 2020, Quest Diagnostics filed a Current Report on Form 8-K with the Securities and Exchange Commission to outline the impact of the pandemic on its operating results, cash flows and financial condition and withdraw its previously announced guidance for full year 2020.

The conference call can be accessed by dialing 888-455-0391 within the U.S. and Canada, or 773-756-0467 internationally, using the passcode: "Investor." The earnings release and live webcast will be posted on www.QuestDiagnostics.com/investor. The company suggests participants dial in approximately 10 minutes before the call.

A replay of the call may be accessed online at www.QuestDiagnostics.com/investor or by phone at 800-839-1170 for domestic callers or 402-998-0559 for international callers; no passcode is required. Telephone replays will be available from approximately 10:30 a.m. Eastern Time on April 22, 2020 until midnight Eastern Time on May 6, 2020.

Anyone listening to the call is encouraged to read the company’s periodic reports on file with the Securities and Exchange Commission, including the discussion of risk factors and historical results of operations and financial condition in those reports.

Perrigo Announces Preliminary Unaudited First Quarter 2020 Net Sales And Provides First Quarter Operating Income Range

On April 7, 2020 Perrigo Company plc (NYSE; TASE: PRGO) reported preliminary unaudited first quarter 2020 net sales and provided GAAP and non-GAAP operating income for the first quarter (Press release, Perrigo Company, APR 7, 2020, View Source [SID1234556170]).

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Perrigo CEO and President, Murray S. Kessler commented, "While our first priority is the health and wellbeing of our employees and their families, all of us at Perrigo recognize the importance of access to our self-care and health-care products during this global health crisis. For perspective, Perrigo’s Consumer Self-Care Americas business supplies more than half of the acetaminophen (Tylenol equivalent) volume in the United States in addition to many other essential products. During the first quarter, Perrigo continued to experience strong growth across all business segments, while also benefiting from a dramatic surge in demand in March related to the COVID-19 pandemic. Through a herculean effort by our employees, especially our production employees around the world, we were able to supply most of the demand. As a result of these efforts and other factors, Perrigo first quarter net sales increased 14% versus prior year, with organic net sales(1)(2) higher by 11%. First quarter non-GAAP operating income is estimated to be $220 million to $225 million versus $203 million in the prior year quarter. This includes new supplemental bonuses to demonstrate our appreciation to front-line production employees for their dedication and hard work in delivering our essential products to consumers and patients during these unprecedented times."

Preliminary Unaudited First Quarter 2020 Net Sales & Operating Income Range
Consolidated first quarter net sales were approximately $1.3 billion, an increase of 14% compared to the prior year quarter. Excluding exited businesses(2) and the impact of currency, net sales increased 18%. Organic net sales were up 11%.

Worldwide Consumer first quarter net sales were approximately $1.1 billion, an increase of 16% compared to the prior year quarter. Excluding exited businesses and the impact of currency, net sales increased 21%. Organic net sales were up 12%. As a reminder, Worldwide Consumer is comprised of the Consumer Self-Care Americas segment, Consumer Self-Care International segment and corporate.

Consumer Self-Care Americas segment first quarter net sales were approximately $700 million, an increase of 20% compared to the prior year quarter. Excluding exited businesses and the impact of currency, net sales increased 25%. Organic net sales were up 15%.

Consumer Self-Care International segment first quarter net sales were approximately $380 million, an increase of 9% compared to the prior year quarter. Excluding exited businesses and the impact of currency, net sales increased 14%. Organic net sales were up 8%.

Rx segment first quarter net sales were approximately $260 million, an increase of 6% compared to the prior year quarter, which benefitted from the U.S. Food and Drug Administration approval and launch of generic albuterol sulfate inhalation aerosol. This more than offset the negative net sales impact of price erosion on testosterone gel 1.62%, which launched in the prior year with 180-day market exclusivity.

The Company estimates first quarter GAAP operating income of $140 million to $145 million, versus $102 million in the prior year quarter. The Company estimates non-GAAP operating income for the quarter of $220 million to $225 million versus $203 million in the prior year quarter. Both the reported and non-GAAP estimates include $4 million in supplemental production employee bonuses.

The Company currently intends to release complete first quarter 2020 financial results during the last week of April 2020. Given the volatility and uncertainty of the current operating environment, the Company does not expect to modify full-year guidance at that time.

See attached Appendix for reconciliation of adjusted (non-GAAP) to reported (GAAP) financial measures.

(1) Organic net sales growth excludes the 2019 acquisition of Ranir, exited businesses and the impact of currency.

(2) Exited businesses refers to the divested animal health business in the prior year period, which was previously included in the Consumer Self-Care Americas segment, and the divested Canoderm prescription product in the Nordic region in the prior year period, which was previously included in the Consumer Self-Care International business. In 2019, net sales of Canoderm were $13 million with adjusted operating income of $8 million.

Kazia’s Paxalisib Shows Positive Overall Survival Signal in Phase II Glioblastoma Study

On April 7, 2020 Kazia Therapeutics Limited (ASX: KZA;NASDAQ: KZIA), an Australian oncology-focused biotechnology company, reported to share positive interim data from its ongoing phase II study of paxalisib (formerly GDC-0084) in glioblastoma, the most common and most aggressive form of primary brain cancer (Press release, Kazia Therapeutics, APR 7, 2020, View Source [SID1234556187]).

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Key Points

Interim analysis of Part A (escalation cohort) (n=9) showed median overall survival (OS) of 17.7 months, representing a clinically meaningful extension of life when compared to the 12.7 months associated with the existing standard of care, temozolomide
Interim analysis of all evaluable patients (Part A = 9; Part B = 21) shows median progression-free survival (PFS) of 8.5 months, broadly in line with previous analysis, and comparing favourably to the 5.3 months associated with temozolomide
The longest-treated patient remains progression-free 19 months after diagnosis
Approximately half the enrolled patients remain on drug and both OS and PFS figures may further improve as the trial progresses toward conclusion
Kazia expects to present further data in 2H CY2020 and final data in 1H CY2021
Summary of Paxalisib Data in Comparison to Temozolomide (existing standard of care)

Temozolomide
(FDA-approved treatment)

Paxalisib

(interim phase II data)

Progression-Free Survival (PFS)

Measures ability of a drug to slow
growth of a tumour

5.3 months

8.5 months

Overall Survival (OS)

Measures ability of a drug to
prolong life

12.7 months

17.7 months

Kazia CEO, Dr James Garner, commented, "This is an excellent result, and we are delighted with the emerging data. The ‘gold standard’ for any new cancer treatment is the ability to extend life – an especially challenging goal in a disease such as glioblastoma – and this data provides our first evidence that paxalisib may achieve this objective in a very challenging patient population."

He continued, "There have not been any new drug treatments for newly-diagnosed glioblastoma patients for over twenty years, and we aspire to change that situation. We believe that paxalisib is rapidly becoming one of the most promising drug candidates in the global pipeline for this very challenging disease and we will be working strenuously to make it available to patients as quickly and efficiently as possible. The study continues to follow a number of patients who remain on treatment, and we currently expect to report a further data read-out in the second half of the year."

Background

The reported overall survival (OS) figure of 17.7 months represents a strong signal of clinical efficacy. The existing, FDA-approved standard of care, temozolomide, is associated with an OS of 12.7 months in this patient population[1]. Comparison between different studies is always imprecise, but the magnitude of the numerical difference provides powerful evidence that treatment with paxalisib may extend life in this patient group.

The reported progression-free survival (PFS) figure of 8.5 months is slightly better than the figure of 8.4 months previously reported in November 2019. Temozolomide is associated with a PFS of 5.3 months in this patient population.

Before losing patent protection, temozolomide achieved peak sales in excess of US$ 1 billion per annum, which provides an indication of the commercial opportunity associated with a new treatment for glioblastoma.

Thirty patients were enrolled to this study, comprising 9 in Part A, and 21 in Part B. Data reported here are provisional figures from Part A (for OS) and from the entire study population (for PFS), but may change as ongoing patients proceed through the study. The study has been conducted at leading centers of excellence in the United States.

The safety of paxalisib remained broadly consistent with prior experience, with hyperglycaemia (raised blood sugar), oral mucositis (mouth ulcers), and low-grade rash among the most common drug-related toxicities.

In addition to this phase II study in glioblastoma, four other studies are underway with paxalisib in different forms of brain cancer, and it is anticipated that several of these will provide initial efficacy data during CY 2020.

This data had been accepted for presentation at the annual meeting of the American Association of Cancer Research (AACR) (Free AACR Whitepaper) in San Diego, CA from 24 -29 April 2020. However, given the cancellation of the AACR (Free AACR Whitepaper) meeting due to the COVID-19 outbreak, Kazia has determined to provide an update to investors via this ASX announcement.

Next Steps

The phase II study remains ongoing, with approximately half of the total enrolled patient population still receiving drug at the time of analysis and a number of additional patients still in follow-up. At this stage, Kazia expects to present further data in 2H CY2020, and final data in 1H CY2021.

ImaginAb and ARTMS Announce Strategic Partnership for Innovative Manufacture of 89Zr CD8 ImmunoPET Agent

On April 7, 2020 ImaginAb Inc., a leading clinical stage immuno-oncology imaging company, and ARTMS Products Inc., the global leader in the development of novel technologies which enable the production of the world’s most-used diagnostic imaging isotopes, reported they have entered a multi-year non-exclusive partnership to explore a novel radiochemistry manufacture of ImaginAb’s lead asset 89Zr CD8 ImmunoPET (Press release, ImaginAb, APR 7, 2020, View Source;utm_medium=rss&utm_campaign=imaginab-and-artms-announce-strategic-partnership-for-innovative-manufacture-of-89zr-cd8-immunopet-agent [SID1234556191]).

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Under the terms of the agreement, ARTMS’ high-power technology will be deployed to enhance the manufacture of ImaginAb’s proprietary antibody 89Zr-Df-IAB22M2C (89Zr CD8 ImmunoPET).

The CD8 ImmunoPET minibody binds to the CD8 receptor on human T cells and is used for non-invasive PET (positron emission tomography) imaging of CD8 T cells in patients as a pharmacodynamic and predictive marker for immunotherapy. Due to the zirconium-89 (89Zr) labeling of the minibody it can be visualized by PET imaging. ARTMS’ flagship product, the QUANTM Irradiation SystemTM (QISTM), provides for cost-effective, decentralized, and local production of important medical isotopes, including 89Zr which is used for the labelling of ImaginAb’s CD8 ImmunoPET agent.

This pioneering methodology of radiochemistry manufacture represents an innovative way to generate 89Zr which will allow for the local manufacture of a significant commercial scale leading to an increase in 89Zr supply as well as potentially expanding ImaginAb’s supply sites. This new process of manufacturing 89Zr has the potential to be applied in the development of other assets in ImaginAb’s pipeline.

As part of the research collaboration, ARTMS will run pilot and optimization studies to assess radiolabelling of ImaginAb’s CD8 ImmunoPET minibody using this new methodology.

Commenting on the news, Ian Wilson, Chief Executive Officer of ImaginAb, said: "We are very excited to expand our manufacturing capabilities with ARTMS. ImaginAb’s CD8 ImmunoPET technology is the most advanced CD8 PET tracer under clinical development, and this new collaboration has the potential to increase access of our technology to patients and partners alike."

Charles S. Conroy, Chief Executive Officer of ARTMS, added: "We are very pleased to join ImaginAb in the search and establishment of a novel and more efficient manufacturing process. This collaboration fits ARTMS’ vision of being a leading manufacturer of the world’s most needed medical radioisotopes. Our state-of-the-art technology platform and robust global quality-supply network make us uniquely qualified to support ImaginAb. ARTMS and ImaginAb share the same patient-focused mindset and dedication to producing products of the highest quality for patients."

Evotec and Takeda enter into multi-year gene therapy research alliance

On April 6, 2020 Evotec SE (Frankfurt Stock Exchange: EVT, MDAX/TecDAX, ISIN: DE0005664809) reported that Evotec GT, with operations in Austria, has established a long-term research alliance with Takeda to support Takeda’s growing number of research stage gene therapy discovery programmes (Press release, Evotec, APR 6, 2020, View Source;announcements/press-releases/p/evotec-and-takeda-enter-into-multi-year-gene-therapy-research-alliance-5925 [SID1234556136]).

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Evotec GT is an integral part of Evotec’s integrated fully modality-agnostic drug discovery platform that combines all activities involved with the discovery, development, and manufacturing of therapeutics along the value chain.

Under the alliance, Evotec will support multiple Takeda programmes targeting conditions aligned with Takeda’s four core therapeutic areas: Oncology, Rare Diseases, Neuroscience and Gastroenterology. The alliance leverages Evotec’s growing gene therapy capabilities as well as Evotec’s broader drug discovery platform.

Dr Steven Hitchcock, Global Head of Research for Takeda, said: "We are excited to be broadening and expanding our discovery efforts with the Evotec team. Gene therapy is a growing therapeutic approach in our portfolio and this alliance with Evotec will help us further accelerate our delivery of transformative therapies for patients, particularly those with rare diseases."

Dr Craig Johnstone, Chief Operating Officer of Evotec, commented: "We’re pleased to expand the scope of our collaboration with Takeda into gene therapy by establishing an alliance with Takeda. This new alliance demonstrates the value of our multimodality platform with innovative technologies and best-in-class execution for addressing the most urgent requirements of our partners. Relationships like this will transform industry’s approach to drug discovery and development to ultimately find new therapies."

No financial details of the agreement were disclosed.