Biotech Alert: Searches spiking for these stocks today

These names in the biotech sector are seeing a substantial increase in search activity today, as determined by InvestingChannel. They include: 

• Verrica Pharmaceuticals (VRCA), 381% surge in interest
• Reata Pharmaceuticals (RETA), 283% surge in interest
• Heron Therapeutics (HRTX), 249% surge in interest
• Coherus Bio (CHRS), 214% surge in interest
• Jaguar Health (JAGX), 208% surge in interest

Pipeline and key clinical candidates for these companies:

Verrica is a dermatology therapeutics company developing medications for skin diseases requiring medical interventions. On July 21, 2023, Verrica’s lead product, Ycanth, became the first treatment approved by the FDA to treat pediatric and adult patients with molluscum contagiosum, a highly contagious viral skin infection affecting approximately 6 million people in the United States, primarily children. VP-102 is also in development to treat common warts and external genital warts, two of the largest unmet needs in medical dermatology. Verrica is developing VP-103, its second cantharidin-based product candidate, for the treatment of plantar warts. Verrica has also entered a worldwide license agreement with Lytix Biopharma AS to develop and commercialize VP-315 for dermatologic oncology conditions.

Reata Pharma is “committed to developing and commercializing novel therapeutics for patients with serious or life-threatening diseases with few or no approved therapies.” The company is focused on molecular pathways involved in the regulation of cellular metabolism and inflammation. Reata’s first product, Skyclarys, has been approved by the FDA for the treatment of Friedreich’s ataxia and is under review in Europe by the EMA. In addition, Reata is developing cemdomespib for the treatment of patients with diabetic neuropathic pain. Cemdomespib is an investigational drug, and its safety and efficacy have not been established by any regulatory agency.

Heron Therapeutics is a commercial-stage biotechnology company that says its “advanced science, patented technologies, and innovative approach to drug discovery and development have allowed it to create and commercialize a portfolio of products that aim to advance the standard-of-care for acute care and oncology patients.”

Coherus is a commercial-stage biopharmaceutical company focused on the research, development and commercialization of innovative immunotherapies to treat cancer and the commercialization of our portfolio of FDA-approved therapeutics. Coherus’ strategy is to build a leading immuno-oncology franchise funded with cash generated through net sales of its diversified portfolio of FDA-approved therapeutics.

Jaguar Health is a commercial stage pharmaceuticals company focused on developing novel, plant-based, sustainably derived prescription medicines for people and animals with GI distress, including chronic, debilitating diarrhea. Jaguar Health’s wholly owned subsidiary, Napo Pharmaceuticals, focuses on developing and commercializing proprietary plant-based human pharmaceuticals from plants harvested responsibly from rainforest areas. Their crofelemer drug product candidate is the subject of the OnTarget study, an ongoing pivotal Phase 3 clinical trial for prophylaxis of diarrhea in adult cancer patients receiving targeted therapy.

Recent news on these stocks:

July 26

Jaguar Health announced that two leading veterinary oncologists, Laura D. Garrett, DVM, Diplomate ACVIM and Angharad Waite, VMD, DACVIM will serve as Principal Investigators for the company’s planned clinical field study of Canalevia-CA1, the company’s U.S. Food and Drug Administration conditionally approved prescription drug for the treatment of chemotherapy-induced diarrhea in dogs, to support full approval of the product. Canalevia-CA1 received conditional approval in December 2021 from the FDA for the treatment of CID in dogs and is available from multiple leading veterinary distributors in the U.S. Conditional approval allows for commercialization of the product while Jaguar continues to collect the substantial evidence of effectiveness required for full approval.

July 24

Cantor Fitzgerald raised the firm’s price target on Reata Pharmaceuticals to $145 from $110 and kept an Overweight rating on the shares. The adoption of Skyclarys could prove rapid and broad, mimicking other recent rare neurodegenerative/developmental launches in ALS and Rett, the analyst told investors in a research note. Reata is likely well-positioned to execute a launch that may mirror the early success of ACADIA’s DAYBUE for Rett syndrome and Amylyx’s (AMLX) RELYVRIO for amyotrophic lateral sclerosis, the firm contended.

Heron Therapeutics announced a cost reduction plan and a corporate restructuring, following a strategic review of the business conducted by the new management team. These actions are expected to result in cash savings of approximately $75M through 2025, inclusive of $45M in operational savings, and continue Heron’s progression towards a streamlined organization focused on commercial execution, enabling it to take a crucial step towards achieving profitability. The company’s cost reduction plan will focus on streamlining operational expenditures, including reductions in research and development and general and administrative expenses, while aiming to achieve profitability in late 2024. A portion of the expected cash savings will come from reduced external spend, including completed renegotiation and right-sizing of key vendor contracts, which is expected to result in over $31M in cash savings through 2025. In addition, Heron has conducted a corporate restructuring, reducing the company’s employee base by 25%. Due to this restructuring, Heron expects to incur non-recurring cash expenses of approximately $5.9M in 2023.

Citi initiated coverage of Coherus Biosciences with a Buy rating and $12 price target. Coherus is an “underappreciated biotech company with a unique dual business model,” including a rapidly expanding commercial biosimilar franchise and an innovative immuno-oncology pipeline, the analyst told investors in a research note. The firm thinks Coherus is entering a “significant period of re-growth,” driven by new biosimilar launches, the pending toripalimab approval, and clinical advancement of its existing I/O assets.

July 21

Verrica Pharmaceuticals announced FDA approval of Ycanth topical solution for the treatment of molluscum contagiosum in adult and pediatric patients two years of age and older. Ycanth is for topical use only. Ycanth is not for oral, mucosal, or ophthalmic use. Local skin reactions at the application site were observed in 97% of subjects treated with Ycanth during clinical trials. Local skin reactions included vesiculation, pruritus, pain, discoloration, and erythema. Ycanth is a proprietary drug-device combination product containing a GMP-controlled formulation of cantharidin delivered via a single-use applicator, allowing for precise topical dosing and targeted administration. Verrica plans to make Ycanth available by September.

Hear more from InvestingChannel by signing up for The Spill.

About “Biotech Alert”

The Fly will report on a selection of biotech stocks seeing a surge in interest from retail and financial professional investors, based on data from InvestingChannel.

This Fly exclusive recap reveals the biotech stocks that are seeing a spike in searches among the 20-plus million retail and financial professional investors through InvestingChannel’s online financial news media ecosystem.

This increased attention from the investors may be in response to, or advance of, outsized moves for stocks in the biotech sector, which tend to be volatile and prone to sharp swings in share price around binary events such as clinical study results and FDA approvals.