City of Hope Opens Phase 2 Clinical Trial to Test If Intake of Mushroom-Powder Tablets Could Slow the Progression of Prostate Cancer

On April 29, 2021 City of Hope, a world-renowned independent research and treatment center for cancer, diabetes and other life-threatening diseases, reported that now recruiting patients for a Phase 2 clinical trial to investigate whether pills containing white button mushroom extract could regulate the immune system, affecting prostate-specific antigen (PSA) levels to either remain stable or decline (Press release, City of Hope, APR 29, 2021, View Source [SID1234578838]). Heightened levels of PSA in men may indicate the existence of prostate tumors.

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Shiuan Chen, Ph.D., the Lester M. and Irene C. Finkelstein Chair in Biology, has been investigating the potential beneficial effects of white button mushroom (Agaricus bisporus) at City of Hope for about 20 years. His translational preclinical and clinical research has found that this "bioactive food" available in most supermarkets might prevent or slow the spread of prostate and breast cancers. The common fungus appears to block the activity of dihydrotestosterone (DHT), a strong form of the male hormone.

"White button mushroom — like green tea, turmeric, soybean, rosemary and tomato — has been considered a ‘superfood’ with positive effects on human health," said Chen, co-investigator of the clinical trial. "What we’re trying to do is scientifically prove whether the hype is true. If white button mushroom can slow the progression of prostate cancer, we want to know what the active agent is and what biological mechanisms are at work."

City of Hope in Duarte, California, is leading the multisite Phase 2 clinical trial, which will also recruit patients at City of Hope community locations (South Pasadena, West Covina, Rancho Cucamonga) and at John Wayne Cancer Institute in Santa Monica. This National Cancer Institute-funded study will seek to recruit 132 male participants who have recurrent prostate cancer following local therapy or who are undergoing active surveillance and have not yet received any therapy.

"This trial may reveal a possible alternative to or may obviate or delay the need for local or salvage treatments for prostate cancer. These standard-of-care therapies may cause significant short-term and long-term side effects such as incontinence and erectile dysfunction, or weight gain, hot flashes and osteoporosis," said Clayton Lau, M.D., the Pauline & Martin Collins Family Chair in Urology and director of City of Hope’s Prostate Cancer Program. Lau is principal investigator of the trial.

Results from the Phase 1 white button mushroom trial indicated that white button mushroom extract is safe and potentially effective against prostate cancer. About 36% of study participants had some decline in PSA levels after three months of white button mushroom tablet intake, and no dose-limiting toxicities were observed. There were no negative side effects. Androgen deprivation therapy, on the other hand, is an approved therapy with side effects including fatigue, weight gain, muscle weakness, hot flashes, loss of libido, increased risk of diabetes and cardiovascular problems — all these side effects, yet androgen deprivation therapy is not curative.

White button mushroom consumption seemed to stimulate the immune system into action and limited the growth of prostate cancer cells. Upon further research in the laboratory, City of Hope scientists found that white button mushrooms contain chemicals that can block the activity of the androgen receptor in animal models, indicating this common fungus could reduce PSA levels. This research was recently published in The Journal of Nutritional Biochemistry.

The objective of the Phase 2 trial is to assess if recurrent prostate cancer patients experience any PSA reduction at three months. The experimental groups will consume 14 grams of the mushroom-powder tablet per day — roughly 2/3 of a container of white button mushrooms purchased from the supermarket. Tablets will be prepared from freeze-dried powder of white button mushrooms. Those in the control group (observation only) will be able to receive the mushroom tablet after three months.

In addition, for 12 months, the scientists will assess the relative change in PSA levels in men under active surveillance who have not received any localized prostate cancer treatment. Furthermore, scientists will look at biopsy material to identify what molecular changes are linked to intake of white button mushrooms.

Annual Report 2020: Scandion Oncology is setting the pace for the future

On April 29, 2021 Scandion Oncology reported that Annual Report 2020 has now been published and is available on the company’s website (www.scandiononcology.com ) (Press release, Scandion Oncology, APR 29, 2021, View Source;scandion-oncology-is-setting-the-pace-for-the-future,c3336417 [SID1234578868]).

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Bo Rode Hansen, President & CEO, Scandion Oncology A/S comments:

"In 2020, we met major catalysts with initiation of clinical trials, securing financing, preparing for list change to Nasdaq and internationalization. We saw the first signs of activity with SCO-101 and FOLFIRI in patients. This enabled the company to secure a strong financial position and start building the organization for the future.

In 2021, we are expecting the first conclusive data to read out from our CORIST study in Q2. We will use the results from the CORIST study together with a new international positioning analysis of the broader commercial platform potential for Scandion Oncology to focus our clinical strategies going ahead.

We will continue to focus on value for patients and shareholders on our journey towards building the Cancer Drug Resistance Company."

Syros to Report First Quarter 2021 Financial Results on Thursday May 6, 2021

On April 29, 2021 Syros Pharmaceuticals (NASDAQ:SYRS), a leader in the development of medicines that control the expression of genes, reported that it will host a live conference call and webcast at 8:30 a.m. ET on Thursday, May 6, 2021 to report its first quarter 2021 financial results and provide a corporate update (Press release, Syros Pharmaceuticals, APR 29, 2021, View Source [SID1234578743]).

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To access the live conference call, please dial 866-595-4538 (domestic) or 636-812-6496 (international), and refer to conference ID 5770919. A webcast of the call will also be available on the Investors & Media section of the Syros website at www.syros.com. An archived replay of the webcast will be available for approximately 30 days following the presentation.

Emergent BioSolutions Reports Financial Results for First Quarter 2021

On April 29, 2021 Emergent BioSolutions Inc. (NYSE: EBS) reported financial results for the quarter ended March 31, 2021 (Press release, Emergent BioSolutions, APR 29, 2021, View Source [SID1234578760]).

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FINANCIAL HIGHLIGHTS (1) (in millions)

Q1 2021
Q1 2020
% Change
Total revenues
$343.0
$192.5
78%
Net income (loss)
$69.7
($12.5)
*
Net income (loss) per diluted share
$1.28
($0.24)
*
Adjusted net income (2)
$83.6
$0.3
*
Adjusted net income (2) per diluted share
$1.53
$0.01
*
Adjusted EBITDA (2)
$123.5
$15.3
*
* % change is greater than 100%
2021 FINANCIAL PERFORMANCE (1)
(I) Quarter Ended March 31, 2021 (Q1)
Revenues
(in millions)
Q1 2021
Q1 2020
% Change
Product sales, net (5):
• NARCAN Nasal Spray
$74.2
$72.2
3%
• Anthrax vaccines
$55.0
$51.9
6%
• Other
$8.7
$24.1
(64)%
Total product sales, net
$137.9
$148.2
(7)%
Contract development and manufacturing (CDMO) services
$183.8
$21.7
*
Contracts and grants
$21.3
$22.6
(6)%
Total revenues
$343.0
$192.5
78%
(5) Product sales, net are reported net of variable consideration including returns, rebates, wholesaler fees and prompt pay discounts.
* % change is greater than 100%

Product Sales, net

For Q1 2021, revenues from NARCAN Nasal Spray and Anthrax vaccines were consistent as compared to Q1 2020.
For Q1 2021, revenues from other product sales decreased $15.4 million as compared to Q1 2020. The decrease is primarily due to lower sales of BAT[Botulism Antitoxin Heptavalent (A, B, C, D, E, F, G) – (Equine)], due to timing of deliveries to the U.S. government (USG) and the Strategic National Stockpile, and lower sales of the Company’s travel health vaccines, largely Vivotif (Typhoid Vaccine Live Oral Ty21a), due to the currently low level of global travel.

Contract Development and Manufacturing (CDMO) Services

For Q1 2021, revenue from contract development and manufacturing services was $183.8 million, an increase of
$162.1 million, as compared to Q1 2020. The increase is largely due to the public-private partnership with the Biomedical Advanced Research and Development Authority (BARDA) to support the USG’s efforts to address the COVID-19 pandemic and CDMO services in support of commercial innovators.

Contracts and Grants

For Q1 2021, revenues from contracts and grants were consistent as compared to Q1 2020.
Operating Expenses
(in millions)
Q1 2021
Q1 2020
% Change
Cost of product sales and CDMO services
$99.3
$76.9
29%
Research and development
$52.5
$42.7
23%
Selling, general and administrative
$80.9
$69.7
16%
Amortization of intangible assets
$14.9
$14.8
1%
Cost of Product Sales and CDMO Services
For Q1 2021, cost of product sales and contract development and manufacturing services increased $22.4 million as compared to Q1 2020. The increase is primarily due to a higher volume of CDMO services, largely the Company’s arrangements to address the COVID-19 pandemic, partially offset by a decline in costs associated with product sales due to the lower total product sales, net.

Research and Development

For Q1 2021, research and development expenses increased $9.8 million as compared to Q1 2020. The increase is primarily due to higher costs associated with the development of the COVID-HIG therapeutic product candidate, offset by a decline in costs associated with the development of the AV7909 (Anthrax Vaccine Adsorbed, Adjuvanted) product candidate as this program is nearing completion. Net of contracts and grants revenue, which consists primarily of reimbursements against development investments, research and development expenses were $31.2 million for Q1 2021.

Selling, General and Administrative

For Q1 2021, selling, general and administrative expenses increased $11.2 million as compared to Q1 2020. The increase is primarily due to higher staffing and professional service costs to support the Company’s growth.
Additional Financial Information

Gross Margin (2)
(in millions)
Q1 2021
Q1 2020
% Change
Gross margin
$222.4
$93.0
139%
Gross margin % (gross margin divided by adjusted revenues (2))
69%
55%
14%
Adjusted gross margin
$223.5
$93.6
139%
Adjusted gross margin % (adjusted gross margin divided by adjusted revenues (2))
69%
55%
14%
CDMO Metrics
CDMO Backlog Rollforward
(in millions)
Beginning backlog (12/31/2020)
$1,340.0
Revenue recognized during Q1 2021
($183.8)
New business (net new contracted value included in backlog)
$186.6
Ending backlog (3/31/2021)
$1,342.8

(in millions)
March 31, 2021
December 31, 2020
% Change
CDMO services backlog (3)
$1,342.8
$1,340.0
—%
CDMO services opportunity funnel (4)
$807.1
$689.0
17%
Capital Expenditures
(in millions)
Q1 2021
Q1 2020
% Change
Gross capital expenditures
$56.1
$24.2
132%
– Capital expenditures reimbursed
($7.2)
$—
—%
Net capital expenditures
$48.9
$24.2
102%
Gross capital expenditures as a % of total revenues
16%
13%
3%

2021 FINANCIAL FORECAST

For full year 2021, the Company’s revised and previous forecast of the following financial metrics is as follows:
(in millions)
Revised 2021 Forecast
Previous 2021 Forecast
Total revenues
$1,700 – $1,900
$1,950 – $2,050
• NARCAN nasal spray
$305 – $325
$305 – $325
• Anthrax vaccines
$280 – $310
$280 – $310
• ACAM2000
$185 – $205
$185 – $205
• CDMO services
$765 – $875
$925 – $965
Adjusted EBITDA (2)
$620 – $720
$750 – $810
Adjusted net income (2)
$395 – $470
$475 – $525
Gross margin (2)
63% – 65%
65%
The Company’s revised financial forecast for 2021 includes the following additional considerations:

Revised considerations

CDMO services revenues have been reduced primarily due to the hold of certain COVID-19 vaccine bulk drug substance lots and commitment not to initiate new manufacturing at Bayview pending further review by the U.S. Food and Drug Administration (FDA). Even assuming FDA concurrence to re-initiate new manufacturing and/or release of lots, the Company expects a delay in the timing of expected revenue.

Total revenues, specifically other product sales, are expected to be impacted due to the Company’s assumption that a new raxibacumab contract will be awarded later than previously planned.
Unchanged considerations

Anthrax vaccines revenues are expected to continue to primarily reflect procurement of AV7909 under the terms of the Company’s existing contract with BARDA at a more normalized annual level.

ACAM2000, (Smallpox (Vaccinia) Vaccine, Live) vaccine deliveries are expected to continue under the terms of the Company’s existing contract with the U.S. Department of Health and Human Services (HHS) at unit volume levels consistent with 2020 deliveries.

Narcan (naloxone HCl) Nasal Spray revenues assume the naloxone market remains competitive, that at least one new entrant will enter the market by year end, and that no generic entrant will enter the market prior to the anticipated appellate decision related to the pending patent litigation, which is expected in the second half of 2021.
Pipeline progress is expected across the vaccines, therapeutics, and devices portfolios, anticipating at least one Phase 3 launch and one Biologics License Application (BLA)/Emergency Use Authorization (EUA) filing.
Capital expenditures, net of reimbursement, are expected to be in a range of 8% to 9% of total revenues, reflecting ongoing investments in capacity and capability expansions in support of the Company’s CDMO services business and product portfolio.

Q2 2021 REVENUE FORECAST

For Q2 2021, the Company expects total revenues of $370 million to $430 million.

FOOTNOTES

(1) All financial information incorporated within this release is unaudited
(2) See "Reconciliation of Net Income to Adjusted Net Income," "Reconciliation of Net Income to Adjusted EBITDA," "Reconciliation of Gross Margin and Adjusted Gross Margin" and "Reconciliation of Net Research and Development Expenses" for a definition of terms and the reconciliation tables.
(3) CDMO backlog is defined as estimated remaining contract value as of the indicated period pursuant to signed contracts, the majority of which is expected to be recognized over the next 24 months.
(4) CDMO opportunity funnel is defined as proposal values from new work with new customers, new work with existing customers and extensions/expansions of existing contracts with existing customers, that if converted to new business the majority of which is expected to be realized over the next 24 months. This excludes any value associated with an extension of the commercial supply agreements (CSA) with Johnson & Johnson and AstraZeneca.
(5) Product sales, net are reported net of variable consideration including returns, rebates, wholesaler fees and prompt pay discounts.

CONFERENCE CALL, PRESENTATION SUPPLEMENT, AND WEBCAST INFORMATION

Company management will host a conference call at 5:00 pm (Eastern Time) today, April 29, 2021, to discuss these financial results. The conference call and presentation supplement can be accessed from the Company’s website or through the following:

Live Teleconference Information:
Dial in: [US] (855) 766-6521; [International] (262) 912-6157
Conference ID: 9153099
Live Webcast Information:
Visit View Source for the webcast.
A replay of the call can be accessed from the Emergent website.

Jazz Pharmaceuticals Announces Closing of Senior Secured Notes Offering

On April 29, 2021 Jazz Pharmaceuticals plc (Nasdaq: JAZZ) (the "Company" or "Jazz") reported the closing of its previously announced offering (the "Offering") of $1.5 billion in aggregate principal amount of 4.375% senior secured notes due 2029 (the "Notes") by Jazz Securities Designated Activity Company, a direct wholly owned subsidiary of the Company (the "Issuer") (Press release, Jazz Pharmaceuticals, APR 29, 2021, View Source [SID1234578782]). The Notes will mature on January 15, 2029 and will bear an interest rate of 4.375%. The Notes are guaranteed by the Company and certain of its subsidiaries.

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The Company expects to use the net proceeds from the Notes and borrowings under new senior secured credit facilities (the "New Senior Secured Credit Facilities"), together with cash on hand, to fund the cash consideration payable in connection with the previously announced acquisition of GW Pharmaceuticals plc ("GW") (the "Acquisition"), the refinancing of certain of the Company’s indebtedness (including the Company’s existing senior secured credit facility) and fees and expenses in connection with the foregoing. If (1) the Acquisition is consummated without the Company entering into the New Senior Secured Credit Facilities, (2) the Acquisition has not been consummated on or before August 3, 2021 (or such later date to which such date may be extended pursuant to the terms of the Transaction Agreement, dated February 3, 2021, among the Company, GW and Jazz Pharmaceuticals UK Holdings Limited (the "Transaction Agreement")) or (3) the Transaction Agreement is terminated in accordance with its terms, the Issuer will be required to redeem all of the Notes at a redemption price equal to 100% of their principal amount plus accrued and unpaid interest to, but excluding, the redemption date.

The Notes were offered and sold only to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the U.S. Securities Act of 1933, as amended (the "Securities Act"), that are located in the United States, Canada, France, Ireland, Luxembourg, the United Kingdom, and Bermuda and to certain non-U.S. persons outside the United States pursuant to Regulation S under the Securities Act that are located in Canada, France, Ireland, Luxembourg, the United Kingdom, and Bermuda. The Notes have not been registered under the Securities Act or any state securities law and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state laws.

This press release does not constitute an offer to sell or a solicitation of an offer to purchase the Notes or any other securities and does not constitute an offer, solicitation or sale in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful.