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), 386% surge in interest
• Brainstorm Cell (BCLI), 126% 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.

BrainStorm Cell Therapeutics is a developer of autologous adult stem cell therapeutics for debilitating neurodegenerative diseases. The company holds the rights to clinical development and commercialization of the NurOwn technology platform used to produce autologous MSC-NTF cells through an exclusive, worldwide licensing agreement. Autologous MSC-NTF cells have received Orphan Drug designation status from the FDA and the EMA for the treatment of amyotrophic lateral sclerosis, ALS. BrainStorm has completed a Phase 3 pivotal trial in ALS; this trial investigated the safety and efficacy of repeat-administration of autologous MSC-NTF cells and was supported by a grant from the California Institute for Regenerative Medicine.

Recent news on these stocks:

September 27

BrainStorm Cell Therapeutics announced that Nasdaq has halted trading of the company’s common stock. The FDA’s Cellular, Tissue and Gene Therapies Advisory Committee is meeting September 27 to review BrainStorm’s Biologics License Application for NurOwn for the treatment of amyotrophic lateral sclerosis. The ADCOM meeting is scheduled to take place 10:00 am to 6:00 pm ET.

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.”

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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.