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: 

• Morphic Holding (MORF), 2,771% surge in interest
• Seagen (SGEN), 295% surge in interest
• Mirati Therapeutics (MRTX), 161% surge in interest

Pipeline and key clinical candidates for these companies:

Morphic Holding is developing a portfolio of oral integrin therapies for the treatment of serious chronic diseases, including autoimmune, cardiovascular, and metabolic diseases, fibrosis, and cancer. Morphic is also advancing its pipeline and discovery activities in collaboration with Schrodinger (SDGR) using its proprietary MInT technology platform, which leverages the company’s unique understanding of integrin structure and biology.

Seagen is a global biotechnology company that discovers, develops and commercializes transformative cancer medicines to make a meaningful difference in people’s lives. Seagen is headquartered in the Seattle, Washington area, and has locations in California, Canada, Switzerland and the European Union. On March 12, 2023, Seagen entered into an agreement and plan of merger that will see the company become a wholly owned subsidiary of Pfizer (PFE) when the deal is completed.

Mirati Therapeutics is focused on bringing forward therapies that address areas of high unmet medical need, including lung cancer, and advancing a pipeline of novel therapeutics targeting the genetic and immunological drivers of cancer.

Recent news on these stocks:

September 22

An abstract posted to the site of UEG Week, the United European Gastroenterology Week meeting in Copenhagen, is being attributed as the reason for weakness in shares of Morphic, which are down $18.24, or 35%, to $33.16. The abstract states in part: “MORF-057 is an orally dosed small molecule designed to selectively inhibit the alpha4beta7 integrin, avoiding the need for parenteral administration. This Phase 2a open label study aimed to assess the safety, tolerability, pharmacokinetics, and efficacy of MORF-057 dosed 100 mg twice daily for induction treatment in adults with moderately to severely active ulcerative colitis, UC… Of the 35 patients in the Full Analysis Set, 31/35 (89%) completed the 12-week induction Period. The mean baseline modified Mayo score was 6.7 and the mean RHI score was 22.7. At Week 12, the primary endpoint of the study was met with a mean reduction in the RHI score of – 6.4. For the secondary endpoint of change from baseline in the modified Mayo Clinic score, a change of -2.3 points was observed. 25.7% of patients achieved mMCS clinical remission. The proportion of patients achieving a mMCS clinical response was 45.7% and endoscopic improvement was achieved in 25.7% of patients.”

Wells Fargo thinks the negative reaction being seen in Morphic shares after the UEG abstract for the Phase 2a trial of MORF-057 was posted to the event’s site is “likely overblown.” The new info was the endoscopic improvement, or EI, rate of 25.7% at 12 weeks which “matched exactly” the clinical remission rate from MORF-057 in the trial and was “considerably lower” than vedo’s 41% at 6 weeks from its Phase 3 trial, says the analyst. However, past ulcerative colitis, or UC, trials shows variability across endoscopic improvement rates as it relates to clinical remission rate, the analyst contends. The firm, which would “chalk up the rates being the same to the small trial size,” believes the idea that MORF-057’s data is worse than vedo is driving the weakness, but “we don’t think this is conclusive at all.” Wells has an Overweight rating and $80 price target on Morphic shares and would be “buyers here.”

Seagen and Astellas Pharma (ALPMY) announced positive topline results from the Phase 3 EV-302 clinical trial for PADCEV in combination with KEYTRUDA versus chemotherapy in patients with previously untreated locally advanced or metastatic urothelial cancer, a form of bladder cancer that has spread to surrounding organs or muscles, or other parts of the body. The EV-302 trial enrolled patients with previously untreated la/mUC who were eligible for cisplatin- or carboplatin-containing chemotherapy regardless of PD-L1 status. The EV-302 study met its dual primary endpoints of overall survival and progression-free survival, compared to chemotherapy. An Independent Data Monitoring Committee determined that OS crossed the pre-specified efficacy boundary at interim analysis. The safety results of the combination are consistent with those of enfortumab vedotin in combination with pembrolizumab previously reported in cisplatin-ineligible patients with la/mUC.

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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.