OrbiMed-managed trusts benefit from Alexion’s rise
Shares in trust favourite Alexion Pharmaceuticals (Nasdaq: ALXN) put on 12% last week on the back of a strong financial first quarter with upgraded guidance and positive top-line results from a phase III study of ALXN1210, the company’s longer-acting follow-up to its blockbuster Soliris in the ultra-rate disease of paroxysmal nocturnal haemoglobinuria (PNH). Alexion features prominently in the OrbiMed-managed Biotech Growth Trust (BIOG, 4.6% of NAV) and Worldwide Healthcare Trust (WWH, 4.1%), but is also included in BB Biotech (BBB) (4%) among others.
The company reported the results of the Switch study with ALXN1210, which showed that patients can transition from Soliris to the longer-acting product safely. In statistical terms, the study showed non-inferiority, only very narrowly missing superiority, and Alexion is likely nonetheless to be able to convince payers that the new drug has clinical advantages over and above patient convenience. The study enrolled nearly 200 PNH patents who were stable on Soliris, given by twice-monthly infusion, who were switched over to ALXN1210, which is infused every two months. The study is the second Phase III – the earlier study also showed non-inferiority in clinical terms with trends towards superiority – and Alexion intends to file ALXN1210 for approval later this year.
ALXN1210 is critical to Alexion’s strategy to maintain its dominant position after the patents on Soliris expire in the mid 2020s and the magnitude of rise in the share price last week – it added some $3bn to its market cap – reflects the effect that the positive study result has in removing the perceived overhang relating to potential biosimilars or copy-type products to Soliris. It seems possible even that this will also mark a turning point for Alexion, which has suffered a number of commercial misteps and management turmoil over the past two years, which led to a substantial derating.
Earlier in the month, Alexion tested the water with its first acquisition since the ill-judged May 2015 deal to acquire Synageva Biopharma, which later unravelled when it became apparent the drug acquired Kanuma, although approved, would not generate the expected blockbuster sales. The latest acquisition candidate is Sweden’s Wilson Therapeutics, which will add a late-stage candidate, WTX101, to its R&D pipeline. WTX101 is in Phase III studies for the treatment of Wilson disease, a rare genetic disorder.
OrbiMed-managed trusts benefit from Alexion’s rise