EpicentRx Announces First Ever Treatment of Cancer Patient with Personalized, Custom-Made Viral Vaccines

On May 2, 2018 EpicentRx, a San Diego biotechnology company developing a next-generation immunotherapy platform of viruses that infect and kill cancer cells for the treatment of several tumor types, reported that it has developed the first ever series of oncolytic viruses tailored to tumors of individual patients (Press release, EpicentRx, MAY 2, 2018, View Source [SID1234528889]). The first patient, treated at the University of Cincinnati (UC) in Cincinnati, Ohio, by John Morris, MD, professor at the UC College of Medicine and director of the area’s only Phase I/Experimental Therapeutics Program, has been enrolled to receive a personalized virus that has been "armed" with peptide fragments or neoantigens from his specific tumors.

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Neoantigens are ideal targets for the immune system because they are selectively expressed on tumors not on normal cells. Viruses naturally target and kill cancer cells and these personalized viruses, which are derived from viruses that cause the common cold, have been engineered to improve on that ability since they use the machinery of the cancer cell to produce thousands of copies of themselves and the neoantigens that they are carrying. Hence, these viruses are administered with the goal of training the immune system to seek out and destroy the cancer cells that display these neoantigens.

This trial "provides proof-of-principle that personalized viral vaccines tailored and targeted to patient tumors can be made quickly and on demand," said Dr. Tony R. Reid, Chief Scientific Officer of EpicentRx and Associate Professor of Oncology at UCSD in California.

Dr. Corey A. Carter, CEO of EpicentRx, added that while current treatment paradigm in oncology relies on off the shelf, one size fits all therapies, "we know that every patient and patient’s tumor is different. To target an individual tumor in individual patients is nothing short of a revolution."

Drs. Carter and Reid felt that further development of personalized viral vaccines is warranted in combination with other immunotherapy weapons such as checkpoint inhibitors, which also trigger immune responses against cancer neoantigens, albeit non-specifically. "The reality is that other immunotherapies, such as checkpoint inhibitor drugs, only benefit 20-25% of patients in selected tumor types. There’s nothing for the other 75-80% of patients that don’t benefit. We can and must do better. These viruses are potentially a way to increase response rates so that the other 75-80% of patients start to benefit," said Dr. Carter.

"No two cancer cells are exactly alike, making it difficult to target cancer cells with drugs that inhibit one receptor or even one pathway since the cancer cells may and often do vary with respect to genetic changes and survival mechanisms," says Dr. Morris. "This personalized viral vaccine has the ability to contain express many different neoantigens from the tumor, targeting multiple genetic mutations in tumor cells, which could potentially prevent the cancer cells from sidestepping the immune system. We are excited to be part of this trial, which could prove beneficial for many patients."

"When you infect a cancer cell with a virus, it is like waving a big red flag at a bull, which stimulates the immune system to ‘go after’ the cancer. But like a matador cancer often has the ability to maneuver away from the threatening attack. In our experiments we have found that when the virus is personalized to the tumor with multiple neoantigens, the tumor is unable to escape the immune system’s charge and is ‘gored’," said Dr. Reid. "Effectively what we are doing with these viruses is to use the immune system’s natural ability to attack many target antigens, which is what happens every time we get an infection."

Oncolytic viruses have been tested in thousands of patients in the clinic and generally appear to only cause flu-like symptoms for about a week, according to Dr. Reid.

The viruses were manufactured in house according to Good Manufacturing Practice (GMP) regulations and samples of patient tumors and normal DNA from blood underwent whole-exome sequencing to reveal mutations present only in the tumor.

According to Dr. Carter, "Future personalized viral vaccine trials will be done under a separate Investigational New Drug application to the FDA, so many more patients with advanced disease may be enrolled to test the efficacy of the viruses both alone and with checkpoint blockade and other immunotherapeutics. Personalized viruses have the potential to be applied to any cancer with enough neoantigens for vaccination."

Tumor-targeting viruses can rally the immune system against cancers, boosting the efficacy of immunotherapy drugs and opening the door to promising combination treatments for aggressive and difficult-to-treat cancers. Many viruses naturally target and kill cancer cells, and experimental oncolytic viruses are often engineered to improve that ability.

Morphogenesis, Inc Raises $16 Million to Advance into Human Clinical Trials

On May 2, 2018 Morphogenesis, Inc., a Tampa, FL-based immunotherapy company closed a $16 million Series A investment round led by Dr. Kiran Patel and KP Biotech Group, a company managed by Dr. Kiran Patel (Press release, Morphogenesis, MAY 2, 2018, View Source [SID1234526206]). With the completion of the Series A Round, Dr. Kiran Patel was elected Chairman of the Board of Morphogenesis.

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Newly elected Chairman Dr. Patel reacted to the closing by saying, "It’s extremely rewarding to reach this point with the Morphogenesis team who have been pursuing such formidable endeavors in biotechnology that will put Tampa on the map. Interest in this investment was strong but we had to cap at $16M. I have been investing in the Company for over five years now with a strong belief in the work Pat and Mike have undertaken. The successful outcomes from their companion animal and mouse studies have resulted in a green light by the FDA to move into Phase 1b of human clinical trials."

Morphogenesis is a cell and gene therapy company that produces "off-the-shelf" cancer therapies that mark tumor cells for destruction by the immune system. One of the hallmarks of this technology is that it focuses the immune response specifically to tumor cells. Since healthy cells are ignored in the process, and adverse effects are minimized with these therapies. Initially focused on melanoma, the therapies show promise against both liquid and solid tumors of varying types, as both a monotherapy or in combination with other immunotherapies, including checkpoint inhibitors. The Company intends to use the proceeds to fund its Phase 1b human clinical trial at Tampa’s Moffitt Cancer Center and to develop its executive management team.

Year on year, Morphogenesis continues to reach major milestones towards their goal of human cancer treatments. Last year, Morphogenesis augmented its portfolio with three US patent awards. The Company also made applications for patent protection in Europe, Japan, Australia, Canada, China, Hong Kong. These patents are an important component of Morphogenesis’ exclusive intellectual property portfolio that includes more than 25 issued patents and patent applications.

Morphogenesis CEO Patricia Lawman commented on the closing, "We’ve been concentrating on immunotherapies since 2005 and through so many successful outcomes with naturally-occurring cancers in companion animals and horses, we’ve learned a great deal about the potential in human treatment and look forward to getting our trials started."

Skyway Capital Markets, LLC acted as Placement Agent for the offering.

Herzuma® (trastuzumab), a biosimilar for the treatment of breast cancer, now available in Europe

On May 2, 2018 The Mundipharma global network of independent associated companies reported that Herzuma, biosimilar trastuzumab, is now available in Europe, with the product now launched in both the UK and Germany and further launches across European countries anticipated in the coming months (Press release, Mundipharma, MAY 2, 2018, View Source [SID1234526137]). The Mundipharma network has exclusive distribution rights to Herzuma in the UK, Germany, Italy, Ireland, Belgium, Luxembourg and the Netherlands.

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Richard Trollope, Head of Oncology and Biosimilars at Mundipharma International Limited, said: "Building on our partnership with Celltrion Healthcare, we are pleased to announce that biosimilar trastuzumab is now available in Europe with national launches commencing in both the UK and Germany. The availability of biosimilar trastuzumab will provide an alternative treatment option to the thousands of eligible patients across Europe with early breast cancer, metastatic breast cancer or metastatic gastric cancer."

Herzuma, a biosimilar of i.v. Herceptin, was granted marketing authorisation on 9th February 2018 for the treatment of patients with early breast cancer, metastatic breast cancer or metastatic gastric cancer whose tumours have either HER2 overexpression or HER2 gene amplification, following positive opinion and recommendation for approval by the European Medicines Agency’s (EMA) Committee for Medicinal Products for Human Use (CHMP) in December 2017. Biosimilar trastuzumab has the potential to make significant cost savings for healthcare organisations, releasing healthcare resource for other innovative medicines.3

Alberto Martinez, President and CEO, Mundipharma International Limited, said: "Mundipharma has a proven track record of launching biosimilars successfully in Europe, which is illustrated by Celltrion Healthcare entrusting us once again with the launch of biosimilar trastuzumab across key European markets. As biosimilar trastuzumab continues to launch in additional countries, we look forward to assisting healthcare economies across Europe wanting to deliver better value to patients."

Herzuma is the third biosimilar to be marketed and distributed by the Mundipharma network in Europe, having launched Remsima (infliximab), the first biosimilar monoclonal antibody, in 2015, and Truxima (rituximab), the first biosimilar monoclonal antibody for the treatment of cancer, in 2017.

United Therapeutics Corporation Reports First Quarter 2018 Financial Results

On May 2, 2018 United Therapeutics Corporation (NASDAQ: UTHR) reported its financial results for the first quarter ended March 31, 2018 (Press release, United Therapeutics, MAY 2, 2018, View Source [SID1234526125]).

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"Our first quarter net revenues totaled $389 million," said Martine Rothblatt, Ph.D., Chairman and Chief Executive Officer of United Therapeutics. "Orenitram posted a strong performance, representing the fourth consecutive quarter of greater than 20% net revenue growth on a year-over-year basis. In addition, we continue to treat an increasing number of pulmonary arterial hypertension (PAH) patients with our prostacyclin product franchise, which consists of Orenitram, Remodulin, and Tyvaso, confirming our belief in the organic growth opportunity for these proven therapies. During the first quarter of 2018, we also continued to advance our expanding product pipeline, which currently includes seven Phase III programs and multiple second-generation Remodulin drug delivery systems, as well as regenerative medicine and organ manufacturing programs. We believe that this pipeline positions United Therapeutics as an innovative market leader with the resources in place to ultimately find a cure for PAH and other end-stage organ diseases."

Key financial highlights include (dollars in millions, except per share data):

Three Months Ended
March 31,

Dollar
Change

Percentage
Change

2018

2017

Revenues

$

389.2

$

370.5

$

18.7

5

%

Net income

$

244.5

$

178.6

$

65.9

37

%

Non-GAAP earnings(1)

$

164.9

$

165.7

$

(0.8)

%

Net income, per basic share

$

5.65

$

4.01

$

1.64

41

%

Net income, per diluted share

$

5.57

$

3.89

$

1.68

43

%

Non-GAAP earnings, per diluted share(1)

$

3.76

$

3.61

$

0.15

4

%

__________________

(1)

See definition of non-GAAP earnings, a non-GAAP financial measure, and a reconciliation of net income to non-GAAP earnings below.

Financial Results for the Three Months Ended March 31, 2018 compared to the Three Months Ended March 31, 2017

Revenues

The following table presents the components of total revenues (dollars in millions):

Three Months Ended
March 31,

Dollar

Percentage

2018

2017

Change

Change

Net product sales:

Remodulin

$

126.8

$

145.8

$

(19.0)

(13)

%

Tyvaso

94.6

87.4

7.2

8

%

Adcirca

97.6

80.0

17.6

22

%

Orenitram

52.2

39.3

12.9

33

%

Unituxin

18.0

18.0

%

Total revenues

$

389.2

$

370.5

$

18.7

5

%

Revenues for the three months ended March 31, 2018 increased by $18.7 million as compared to the same period in 2017. Adcirca net product sales increased by $17.6 million primarily due to price increases, which were determined by Eli Lilly and Company (Lilly). Orenitram net product sales increased by $12.9 million primarily due to an increase in the number of patients being treated with Orenitram and the one-time impact of a change in contractual minimum inventory levels with a U.S. distributor, as discussed below. Tyvaso net product sales increased by $7.2 million primarily due to price increases, partially offset by the one-time impact of a change in contractual minimum inventory levels with a U.S. distributor, as discussed below. These net increases in Adcirca, Orenitram and Tyvaso revenues were partially offset by a $19.0 million decrease in Remodulin net product sales due to: (1) a reduction in quantities ordered, based on variations in the timing and magnitude of orders from our U.S. and international distributors, which do not precisely reflect underlying patient demand; (2) a $7.3 million reduction in sales due to a decrease in the international sales price of Remodulin to an international distributor, which we agreed to in connection with a transfer of additional regulatory and commercial responsibilities to that distributor; and (3) the one-time impact of a change in contractual minimum inventory levels with a U.S. distributor, as discussed below.

During the fourth quarter of 2017, we amended our agreements with one of our U.S. specialty pharmacy distributors, in part to make the monthly minimum inventory days-on-hand requirement consistent across Remodulin, Tyvaso, and Orenitram. This change resulted in a one-time decrease in total net product sales of $4.3 million as the distributor adjusted to the new contractual inventory requirement levels in the first quarter of 2018. On an individual product basis, net product sales of Orenitram increased by $3.7 million, net product sales of Tyvaso decreased by $3.5 million, and net product sales of Remodulin decreased by $4.5 million.

Expenses

Cost of product sales. The following table summarizes cost of product sales by major category (dollars in millions):

Three Months Ended
March 31,

Dollar

Percentage

2018

2017

Change

Change

Category:

Cost of product sales

$

59.1

$

15.8

$

43.3

274

%

Share-based compensation benefit(1)

(5.9)

(1.5)

(4.4)

(293)

%

Total cost of product sales

$

53.2

$

14.3

$

38.9

272

%

_________________

(1)

Refer to Share-based compensation (benefit) expense below for discussion.

Cost of product sales, excluding share-based compensation. The increase in cost of product sales of $43.3 million for the three months ended March 31, 2018, as compared to the same period in 2017, was primarily attributable to a $37.3 million increase in the royalty expense for Adcirca. As a result of an amendment to our license agreement with Lilly, effective December 1, 2017, our royalty rate on net product sales of Adcirca increased from five percent to an effective rate of approximately 42.5 percent.

Research and development expense. The following table summarizes research and development expense by major category (dollars in millions):

Three Months Ended
March 31,

Dollar
Change

Percentage
Change

2018

2017

Project and non-project:

Research and development projects

$

58.2

$

41.3

$

16.9

41

%

Share-based compensation benefit(1)

(22.5)

(5.1)

(17.4)

(341)

%

Total research and development expense

$

35.7

$

36.2

$

(0.5)

(1)

%

_________________

(1)

Refer to Share-based compensation (benefit) expense below for discussion.

Research and development expense, excluding share-based compensation. The increase in research and development expense of $16.9 million for the three months ended March 31, 2018, as compared to the same period in 2017, was driven by the expansion of our pipeline programs to treat cardiopulmonary diseases and cancer.

Selling, general and administrative expense. The following table summarizes selling, general and administrative expense by major category (dollars in millions):

Three Months Ended
March 31,

Dollar
Change

Percentage
Change

2018

2017

Category:

General and administrative

$

52.8

$

53.5

$

(0.7)

(1)

%

Sales and marketing

13.3

15.4

(2.1)

(14)

%

Share-based compensation benefit(1)

(72.7)

(12.5)

(60.2)

(482)

%

Total selling, general and administrative expense

$

(6.6)

$

56.4

$

(63.0)

(112)

%

__________________

(1)

Refer to Share-based compensation (benefit) expense below for discussion.

Share-based compensation (benefit) expense. The following table summarizes share-based compensation (benefit) expense by major category (dollars in millions):

Three Months Ended
March 31,

Dollar
Change

Percentage
Change

2018

2017

Category:

Stock options

$

12.7

$

4.6

$

8.1

176

%

Restricted stock units

0.9

0.5

0.4

80

%

Share tracking awards plan

(115.0)

(24.6)

(90.4)

(367)

%

Employee stock purchase plan

0.3

0.4

(0.1)

(25)

%

Total share-based compensation benefit

$

(101.1)

$

(19.1)

$

(82.0)

(429)

%

Share-based compensation. The increase in share-based compensation benefit of $82.0 million for the three months ended March 31, 2018, as compared to the same period in 2017, was primarily due to a $90.4 million decrease in our STAP liability, driven by a greater decrease in our stock price during the three months ended March 31, 2018, as compared to the same period in 2017, partially offset by an $8.1 million increase in stock option expense due to additional awards granted and outstanding in 2018.

Income Tax Expense

The provision for income taxes was $64.5 million for the three months ended March 31, 2018, as compared to $85.0 million for the same period in 2017. Our effective tax rate as of March 31, 2018 and March 31, 2017, was approximately 21 percent and 32 percent, respectively. Our 2018 effective tax rate decreased compared to 2017 primarily due to a reduced federal corporate tax rate, partially offset by the reduction of the Orphan Drug Credit and the repeal of the Section 199 deduction.

MannKind Corporation to Hold 2018 First Quarter Financial Results Conference Call on May 9, 2018

On May 2, 2018 MannKind Corporation(Nasdaq:MNKD) reported that it will release its 2018 first quarter financial results on Wednesday, May 9, 2018 and its management will host a conference call to discuss the financial results and other Company developments at 5:00 PM (Eastern Time) on May 9, 2018 (Press release, Mannkind, MAY 2, 2018, View Source [SID1234525992]).

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Presenting from the Company will be its Chief Executive Officer, Michael Castagna, Chief Financial Officer, Steven Binder, Chief Commercial Officer, Pat McCauley and Chief Medical Officer, David Kendall.

To view and listen to the earnings call webcast live via the Internet, visit the Company’s website at www.mannkindcorp.com and click on the "Q1 2018 MannKind Earnings Conference Call" link in the Webcasts section of News & Events. To participate in the live call by telephone, please dial (800) 289-0438 toll-free or (323) 794-2423 toll/international and use the conference passcode: 3321662.

A telephone replay of the call will be accessible for approximately 14 days following completion of the call by dialing (844) 512-2921 toll-free or (412) 317-6671 toll/international and use the replay passcode: 3321662. A replay will also be available on MannKind’s website for 14 days.