Healthcare Pulse: Bristol-Myers Squibb Co (BMY), Alphabet Inc (GOOGL), and Teva Pharmaceutical Industries Ltd (ADR) (TEVA)
Bristol-Myers Squibb Co (NYSE:BMY) has completed a previously announced transaction for the acquisition of Cardioxyl Pharmaceuticals. Through the acquisition, the company will gain complete rights to CXL-1427, which is in Phase II development. Upon approval the drug should bolster the drug maker’s heart failure pipeline.
Heart failure is the most common cause of hospitalization in the US for patients above the age of 65 years. Even with limited therapies, direct costs as a result of heart failure accounts $34 billion in spending annually. Early data from CXL-1427 trials has already shown the drug can be relied upon to improve the process in which heart muscles contract and relax.
Terms of the deal involve Bristol-Myers Squibb Co (NYSE:BMY) making an upfront and near-term milestone payments of up to $300 million. Payments could rise to $1.775 billion on the additional of development, regulatory and sales milestones.
Alphabet Inc (NASDAQ:GOOGL) has renamed its life sciences division to Verily a name it says highlights its mission of focusing on prevention and proactive solutions. CEO, Andy Conrad, is to head the rebranded unit as focus shifts to combining technology and life sciences in a bid of uncovering truths about health and science.
The Life Sciences Division was previously part of Google X, a unit dedicated to experimental laboratory. Google has been proactive with the unit having inked a partnership with Novartis AG (ADR) (NYSE:NVS)’s subsidiary Alcon for the development of smart contact lenses. The lenses under development are designed to measure blood glucose and transmit the data wirelessly.
Life sciences now Verily is also working with DexCom, Inc. (NASDAQ:DXCM) to develop continuous glucose monitoring products. Another major project under Verily portfolio is the Baseline study. Through the study, the unit hopes to identify traits associated with healthy people as well as the changes that come into being when one becomes sick.
The Food and Drugs Administration is to hold a meeting to pass a verdict on Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA)’s Biologics License Application. Through the application the company is seeking clearance for the use of its asthma candidate, Reslizumab, to improve lung function in patients above the age of 12 years.
Uncontrolled asthma is a serious problem that continues to call for more treatment options. GlaxoSmithKline and AstraZeneca plc (ADR) (NYSE:AZN) are also eyeing the space with their own products.
Reslizumab belongs to the same class as GlaxoSmithKline plc (ADR)(NYSE:GSK) mepolizumab acting as an interleukin-5 inhibitor. It will also compete for market share with AstraZeneca’s benralizumab that is also gunning for approval in the US and Europe.
Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA) posted clinical data for the antibody earlier in the year that showed reduced breakthrough attacks compared to Placebo. Achieving the much-needed approval should be milestone achievement as the drug has the potential to rack in millions if not billions of dollars in sales.
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