On April 18, 2018 Abbott reported financial results for the first quarter ending March 31, 2018. Key takeaways from this morning’s earnings call include (Press release, BioSpace, APR 18, 2018, View Source [SID1234525502]):

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First-quarter reported sales growth of 16.7 percent
First-quarter organic sales growth of 6.9 percent
First-quarter adjusted earnings per share from continuing operations of 59 cents, at the upper end of the previous guidance range
Several recently launched products contributing to strong growth
"We’re off to a strong start to the year as we forecasted," said Miles D. White, chairman and chief executive officer. "We’re particularly pleased with the continued strong growth in medical devices and improving performance in our nutrition business."

The company’s adjusted income rose to 59 cents per share on $7.39 billion in sales for its first quarter, beating Zacks Investment Research estimates of 58 cents on $7.26 billion in sales. Last year at this time, Abbott shares were trading at 48 cents with $6.34 billion in sales.

An infographic from the company highlights an increase of 6.9 percent in worldwide organic sales led by successes in nutrition, diagnostics, established pharmaceuticals and medical devices.

"Back in January I commented that we were entering the year with strong momentum which has continued as we forecasted," White added during the earnings call. "The strong growth we are achieving is a direct result of the steps we have taken to position the company in the most attractive areas of health care as well as the outstanding productivity of our new product pipeline."

Despite the company’s upbeat attitude about its Q1 earnings, shares dipped 3.5 percent early Wednesday on pharmaceutical sales that lagged behind Wall Street’s expectations by nearly 4 percent.

Revenue from established pharmaceuticals fell short by $56 million, RBC Capital Markets wrote in a note to clients. Also, Evercore noted the $1.04 billion in sales for that unit missed the consensus by 3.6 percent.

Medical device sales had the best organic growth in Q1, rising 9.4 percent to $2.74 billion. That beat the consensus for $2.67 billion, Evercore noted. Diagnostics also performed well, rising 5.5 percent organically to $1.84 billion in sales to top the consensus by $69 million.

"For the full year 2018, we continue to forecast organic sales growth of 6 percent to 7 percent," said Chief Financial Officer Brian Yoor. "In addition, we continue to expect rapid diagnostics to contribute sales of a little more than $2 billion."

With a forecasted adjusted gross margin ratio of around 59 percent of sales, Yoor said that research and development investments will be adjusted to around 7.5 percent of sales, and selling, general and administrative expenses adjusted above 30.5 percent of sales."

Worldwide, nutrition sales were $1.76 billion, up 4.7 percent organically and topping guidance for low single-digit growth. Both adult and pediatric segments performed well, growing a respective 4.3 percent and 5.1 percent on an organic basis.

But, White cautioned, nutrition is a highly competitive business in a branded space. "I give our U.S. team a lot of credit for how well they’ve done in the pediatric and adult (nutrition) space. It’s extremely competitive and it’s competitive in both pediatric and adult. And we will see from time-to-time a competitor tries false advertising or other things to take momentary share. But I think overall, we’ve not only sustained our position, but steadily grown it, from a share standpoint."

For the year, Abbott reaffirmed its adjusted profit target of $2.80 to $2.90 a share. Analysts modeled adjusted earnings of $2.87 per share and $30.91 billion in sales. Abbott also sees second-quarter adjusted income coming in at 70 to 72 cents per share.

On April 18, 2018 Rgenix, Inc., a clinical stage biopharmaceutical company developing first-in-class small molecule and antibody cancer therapeutics, reported that it is presenting pre-clinical data from ongoing research of RGX-202, a small molecule compound in development designed to inhibit SLC6a8, a creatine transporter, integral to cancer cell energy metabolism (Press release, Rgenix, APR 18, 2018, View Source [SID1234525519]). In a poster presentation today at the 2018 American Association of Cancer Research Annual Meeting, "RGX-202, a first-in-class small-molecule inhibitor of the creatine transporter SLC6a8, is a robust suppressor of cancer growth and metastatic progression", the data showed RGX-202 to be a robust inhibitor of creatine uptake in cancer cells and to be active in several pre-clinical gastrointestinal cancer models both as a single agent and in combination with chemotherapy.

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RGX-202 is a small molecule that inhibits a novel cancer metabolism target, SLC6a8, which is involved in supplying energy to cancer cells. SLC6a8 is over-expressed in several prevalent cancer types, including gastrointestinal malignancies such as colorectal cancer.

More than 140,000 patients are diagnosed with colorectal cancer annually in the U.S. With approximately 50,000 deaths in the U.S. attributed to the condition annually, it is a leading cause of cancer deaths. Creatine metabolism has been shown to spur the growth of colon cancer. This pathway is activated by colon cancer cells to allow uptake of phosphorylated creatine that can be converted to ATP to fuel survival of cancer cells as they proliferate and spread. RGX-202 inhibits this pathway by blocking the ability of SLC6a8 to import phosphocreatine into cancer cells.

In the pre-clinical research presented today, the impact of RGX-202 was studied alone, and in combination with standard of care chemotherapy agents such as 5-FU.

On its own, RGX-202 induced cancer cell death in vivo and demonstrated anti-tumor activity in both KRAS mutant and KRAS wild-type models of gastrointestinal cancer. RGX-202 also suppressed colon cancer and pancreatic cancer liver metastatic colonization, a model of metastatic cancer progression. Importantly, RGX-202 significantly extended survival of tumor-bearing mice as a single agent.

Studies combining RGX-202 with 5-FU resulted in additive anti-tumor activity, with complete tumor regressions among 50% of treated mice and significantly prolonged survival versus 5-FU treatment alone.

Masoud Tavazoie, MD, PhD, and Chief Executive Officer of Rgenix, said, "The data presented today is just a snapshot of our pre-clinical progress on our research of RGX-202. These data show the strong potential for RGX-202 and support further research of the compound. With these data, we are building a strong foundation for future clinical development of RGX-202, which, with regulatory approval, would diversify our clinical pipeline."

On APril 18, 2018 MorphoSys AG (FSE: MOR; Prime Standard Segment, TecDAX; OTC: MPSYY) reported the pricing of its initial public offering (IPO) in the United States. The offering produced gross proceeds of USD 207,832,000 from the sale of 2,075,000 new ordinary shares in the form of 8,300,000 American Depositary Shares ("ADSs") at a price of USD 25.04 per ADS. Each ADS will represent 1/4 of a MorphoSys ordinary share (Press release, MorphoSys, APR 18, 2018, View Source [SID1234525575]).

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Furthermore, MorphoSys has granted the underwriters an option to purchase up to 1,245,000 additional ADSs, representing 15% of the total number of ADSs placed in the offering. This option can be exercised during the 30-day period commencing April 18, 2018.

The new ordinary shares underlying the ADSs and, if the option will be exercised, the additional ADSs will be issued from MorphoSys’s authorized capital 2017-II, excluding pre-emptive rights of existing shareholders and representing up to 8.1% (including the underwriters’ option to purchase additional ADSs) of the registered share capital of MorphoSys prior to the consummation of the offering.

MorphoSys’s ordinary shares are listed on the Frankfurt Stock Exchange under the symbol "MOR".

The ADSs are expected to begin trading on the Nasdaq Global Market on April 19, 2018, under the symbol "MOR".

The closing of the offering is expected to occur on April 23, 2018, subject to customary closing conditions.

Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and Leerink Partners LLC, are acting as lead book-running managers, and Berenberg Capital Markets, LLC and JMP Securities LLC are acting as co-managers for the ADS offering.

A Registration Statement relating to these securities has been declared effective by the U.S. Securities and Exchange Commission on April 18, 2018.

Within the United States of America, the securities referred to in this release are offered only by means of a prospectus. A copy of the prospectus can be obtained from Goldman Sachs & Co. LLC, Prospectus Department, 200 West Street, New York, NY 10282, telephone: 1-866-471-2526, facsimile: 1-212-902-9316 or by e-mailing [email protected]; J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717, telephone: 1-866-803-9204; Leerink Partners LLC, Attention: Syndicate Department, One Federal Street, 37th Floor, Boston, MA 02110, by telephone at 1-800-808-7525, ext. 6132, or by e-mailing [email protected].

On April 17, 2018 Aptose Biosciences Inc. (NASDAQ:APTO) (TSX:APS) reported the presentation of preclinical data exploring the mechanism of action of APTO-253, the company’s clinical stage product candidate (Press release, Aptose Biosciences, APR 17, 2018, View Source;p=RssLanding&cat=news&id=2343016 [SID1234525432]). The data, demonstrating heightened sensitivity of BRCA1 or BRCA2 mutated cancer cells to APTO-253, were presented in a poster Tuesday, April 17 at the 2018 American Association for Cancer Research (AACR) (Free AACR Whitepaper) Annual Meeting being held April 14-18, in Chicago, IL.

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The poster, entitled APTO-253 is a new addition to the repertoire of drugs that can exploit DNA BRCA1/2 deficiency, explored the mechanism of action of APTO-253, a small molecule with anti-proliferative activity against cell lines derived from a wide range of human malignancies. This study investigated the mechanism of action of APTO-253 to identify synthetic lethal interactions that can guide combination drug studies.

The research team found that APTO-253 stabilizes certain quadruplex DNA structures, causes DNA damage, and exhibits synthetic lethality comparable to olaparib – an FDA-approved targeted therapy that acts against cancers in people with hereditary BRCA1 or BRCA1 mutations, including some ovarian, breast and prostate cancers – albeit through a different mechanism. Unlike other drugs for which loss of this DNA repair function results in hypersensitivity, APTO-253 does not produce myelosuppression even at the maximum tolerated dose. The observations reported also identify γH2AX as a potential biomarker of clinical effect and open the window to more detailed studies of how APTO-253 promotes DNA damage and how it might be used clinically to treat patients with tumors harboring deficiencies in DNA repair.

The presentation will be published in the AACR (Free AACR Whitepaper) Conference Proceedings. The poster can also be accessed here or at the Publications & Presentations section of the Aptose website, www.aptose.com.
"We have clarified the mechanism of APTO-253 during the past year or so, including its mechanism to inhibit expression of the MYC gene, an oncogene that promotes tumor growth and resistance to drugs in AML and other cancers," said William G. Rice, Ph.D., Chairman, President and Chief Executive Officer. "AML remains our primary focus for APTO-253, and we hope to re-initiate dosing of AML patients with APTO-253 in an open phase Ib trial during the 2nd quarter of 2018. In the current presentation at AACR (Free AACR Whitepaper), we report that cancer cells deficient in the BRCA1/2 DNA repair functions are hyper-sensitive to APTO-253, analogous to the FDA-approved PARP inhibitor olaparib, but acting through a different mechanism. The findings reveal potential new solid tumor indications for APTO-253. Importantly, APTO-253 does not produce myelosuppression even at the maximum tolerated dose, which significantly distinguishes it from other cancer chemotherapies."

About APTO-253
APTO-253 is a clinical-stage small molecule targeted therapeutic agent that inhibits expression of the c-Myc oncogene, leading to cell cycle arrest and programmed cell death (apoptosis) in human-derived solid tumor and hematologic cancer cells, without causing general myelosuppression of the healthy bone marrow. The c-Myc oncogene is overexpressed in hematologic cancers, including acute myeloid leukemia (AML). Aptose researchers have reported the ability of APTO-253 to induce cell death, or apoptosis, in multiple blood cancer cell lines including AML, as well as in vitro synergy with various classes of conventional approved and investigational therapies for AML or myelodysplastic syndromes (MDS). New findings reveal that APTO-253 might also serve certain solid tumor patients with BRCA1/2 mutations, but without causing toxicity to the normal bone marrow functions.

Now in its fourth day, the American Association of Cancer Research (AACR) (Free AACR Whitepaper) Annual Meeting 2018 held in Chicago, has had plenty of news, much of it preclinical or early-clinical data (Press release, BioSpace, APR 17, 2018, View Source [SID1234525433]). Here’s a roundup of some of the top stories.

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Compugen and Bayer AG presented efficacy data of BAY 1905254 in cancer immunotherapy. The compound is a first-in-class antibody candidate that targets ILDR2, a novel immune checkpoint discovered by Israeli company Compugen. Bayer expects to move it into human trials sometime this year.

"ILDR2 is a completely new immune checkpoint that we discovered through our computational discovery capabilities," said Anat Cohen-Dayag, Compugen’s president and chief executive officer, in a statement. "This immune checkpoint, together with the discovery of TIGIT and PVRIG, clearly demonstrate the power and value of Compugen’s predictive discovery capabilities in the discovery of new drug targets and pathways, enabling the development of first-in-class product opportunities."
Sierra Oncology, based in Vancouver, presented data for its Checkpoint kinase 1 (Chk1) inhibitor SRA737, as a monotherapy and in combination with a poly ADP-ribose polymerase inhibitor (PARPi) like Tesaro’s Zejula (niraparib). It is being evaluated in an ongoing Phase I/II trial in replication stress-driven cancer. It also plans to initiate a Phase Ib/II trial in metastatic castration-resistant prostate cancer in the fourth quarter.

Tarveda Therapeutics, headquartered in Watertown, Massachusetts, presented preclinical data related to PEN-866. PEN-866 is a miniature drug conjugate to treat patients with solid tumor types that are sensitive to topoisomerase 1 inhibitors like SN-38, which is PEN-866’s payload. It is being evaluated in models of ovarian cancer, lung cancer and colorectal cancer. PEN-866 utilizes the activation of Heat Shock Protein 90 (HSP90) in tumors in order to accumulate and release its payload.

Lycera Corp., located in New York and Ann Arbor, Michigan, released clinical findings from the Phase I part of its Phase I/IIa ARGON trial of the company’s novel immuno-oncology candidate, LYC-55716. LYC-55716 is a first-in-class oral, selective retinoic acid-related orphan receptor-gamma (RORgamma) agonist that reprograms the immune system in solid tumor patients. In the 32 patients enrolled in six dosing cohorts, the drug was well tolerated and no dose-limiting toxicities were seen.
"The promising safety results and early signals of efficacy with LYC-55716 as a monotherapy are very encouraging," said Judy Wang, associate director of Drug Development, Florida Cancer Specialists and Sarah Cannon Research Institute, in a statement. "We are very pleased to be participating in the development of this novel immunotherapeutic, and are actively enrolling patients with advanced solid tumor cancers in the Phase IIa portion of the study."

Lund, Sweden’s Alligator Bioscience presented preclinical data on its immune activating antibody ATOR-1015. ATOR-1015 is a first-in-class bispecific tumor-directed antibody that targets CTLA-4 and OX40. The data shows the compound localizes to the tumor and activates the immune system in the surrounding area, which confirms the drug’s mechanism of action. It is designed mostly for a combo-therapy with PD-1 blocking antibody.
"The results presented in Chicago confirm that our CTLA-4 bispecific antibody ATOR-1015 selectively activates the immune system in the tumor area," said Per Norlen, Alligator’s chief executive officer, in a statement. "This offers great potential for an improved benefit/risk profile for cancer patients. We are more and more excited about the significant prospects for this unique compound, particularly in combination with PD-1 blockers, and are looking forward to initiate clinical development later in the year."
CBT Pharmaceuticals, based in Pleasonton, California, a U.S. and China-based biopharmaceutical company, presented preclinical in-vivo data and animal safety pharmacology studies of CBT-102. This compound is a multi-targeted kinase inhibitor that targets VEGFR, PDGFR, MAPK, B-RAF, C-RAF, C-KIT and CSF1R. It showed tumor regression in 52 patient-derived xenograft models, including non-small cell lung, colorectal, gastric, and hepatocellular carcinoma.
"We are highly encouraged by the preclinical safety and efficacy data of CBT-102," said Sanjeef Redkar, president and chief executive officer of CBT Pharma, in a statement. "Based on this data set, we plan to advance CBT-102 into GLP toxicology studies in 2018 with an aim to enter the clinic in early 2019 in combination with other agents in our portfolio."