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: 

• Alector (ALEC), 895% surge in interest
• Mesoblast (MESO), 343% surge in interest
• Dynavax Technologies (DVAX), 115% surge in interest

Pipeline and key clinical candidates for these companies:

Alector is a clinical-stage biotechnology company that says it is “pioneering immuno-neurology, a novel therapeutic approach for the treatment of neurodegenerative diseases.” The company states: “Immuno-neurology targets immune dysfunction as a root cause of multiple pathologies that are drivers of degenerative brain disorders. Alector has discovered and is developing a broad portfolio of innate immune system programs, designed to functionally repair genetic mutations that cause dysfunction of the brain’s immune system and enable rejuvenated immune cells to counteract emerging brain pathologies. Alector’s immuno-neurology product candidates are supported by biomarkers and target genetically defined patient populations in frontotemporal dementia and Alzheimer’s disease.”

Mesoblast refers to itself as “a world leader in developing allogeneic cellular medicines for the treatment of severe and life-threatening inflammatory conditions.” The company states: “Mesoblast has a strong and extensive global intellectual property portfolio with protection extending through to at least 2041 in all major markets. The company’s proprietary manufacturing processes yield industrial-scale, cryopreserved, off-the-shelf, cellular medicines. These cell therapies, with defined pharmaceutical release criteria, are planned to be readily available to patients worldwide. Mesoblast is developing product candidates for distinct indications based on its remestemcel-L and rexlemestrocel-L allogeneic stromal cell technology platforms. Remestemcel-L is being developed for inflammatory diseases in children and adults including steroid refractory acute graft versus host disease, biologic-resistant inflammatory bowel disease, and acute respiratory distress syndrome. Rexlemestrocel-L is in development for advanced chronic heart failure and chronic low back pain. Two products have been commercialized in Japan and Europe by Mesoblast’s licensees, and the company has established commercial partnerships in Europe and China for certain Phase 3 assets.”

Dynavax is a commercial-stage biopharmaceutical company that says it is “developing and commercializing innovative vaccines to help protect the world against infectious diseases.” The company has two commercial products, HEPLISAV-B vaccine, which is approved in the U.S., the European Union and Great Britain for the prevention of infection caused by all known subtypes of hepatitis B virus in adults 18 years of age and older, and CpG 1018 adjuvant, currently used in multiple adjuvanted COVID-19 vaccines.

Recent news on these stocks:

August 7

Maxim downgraded Mesoblast to Hold from Buy with no price target. The firm cited the company’s announcement that the FDA issued a second complete response letter for Remestemcel-L in the treatment of pediatric acute graft, representing a departure from expectations that additional CMC and mechanistic data would be sufficient, and while the efficacy signals observed across its multiple indications are “quite clear”, Mesoblast no longer has a near-term path to market. Maxim’s downgrade reflects the extended timelines, increased risk associated with clinical trials, and need for capital to conduct studies before it has the potential to reach the market, the analyst told investors in a research note.

August 4

JMP Securities raised the firm’s price target on Dynavax to $25 from $24 and kept an Outperform rating on the shares. Dynavax’s top line results beat consensus estimates, with 73% year-over-year growth in HEPLISAV-B revenues, resulting in increased HEPLISAV-B guidance for 2023, the analyst tells investors in a research note.

August 3

Alector reported Q2 EPS of 2c vs. 12c last year, and reported Q2 revenue $56.21M vs. $79.85M last year. “We expect to complete enrollment in the INVOKE-2 Phase 2 clinical trial of AL002 in early Alzheimer’s disease in the third quarter,” said Arnon Rosenthal, CEO of Alector. “We have received positive feedback from the FDA and the EMA to conduct a primary analysis on approximately 90-100 symptomatic participants in our pivotal INFRONT-3 Phase 3 clinical trial of latozinemab in FTD-GRN. We anticipate completing enrollment in INFRONT-3 in the fourth quarter of this year.”

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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.