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: 

• Morphosys (MOR), 1,462% surge in interest
• Adverum Biotechnologies (ADVM), 432% surge in interest
• Karyopharm (KPTI), 418% surge in interest
• BioXcel Therapeutics (BTAI), 253% surge in interest
• NanoString Technologies (NSTG), 239% surge in interest
• Genprex (GNPX), 97% surge in interest
• Apellis Pharmaceuticals (APLS), 86% surge in interest
• Axsome Therapeutics (AXSM), 19% surge in interest

Pipeline and key clinical candidates for these companies:

MorphoSys is a global commercial-stage biopharmaceutical company, focused on developing and delivering innovative medicines, and aspiring to redefine how cancer is treated. Earlier this week, Novartis (NVS) announced that it has entered into an agreement to make a voluntary public takeover offer to acquire all no-par value bearer shares of MorphoSys AG for EUR 68 per share, or an aggregate of EUR 2.7B.

Adverum Biotechnologies is a clinical-stage company that aims to establish gene therapy as a new standard of care for highly prevalent ocular diseases with the aspiration of developing functional cures to restore vision and prevent blindness. Adverum is evaluating its novel gene therapy candidate, ixoberogene soroparvovec, as a one-time, IVT injection for patients with neovascular or wet age-related macular degeneration.

Karyopharm Therapeutics is a commercial-stage pharmaceutical company pioneering novel cancer therapies. Since its founding, Karyopharm has been an industry leader in oral Selective Inhibitor of Nuclear Export compound technology, which was developed to address a fundamental mechanism of oncogenesis: nuclear export dysregulation. Karyopharm’s lead SINE compound and first-in-class, oral exportin 1 inhibitor, XPOVIO, is approved in the U.S. and marketed by the company in three oncology indications and has received regulatory approvals in various indications in a growing number of ex-U.S. territories and countries, including Europe and the United Kingdom and China. Karyopharm has a focused pipeline targeting multiple high unmet need cancer indications, including in multiple myeloma, endometrial cancer, myelodysplastic neoplasms and myelofibrosis.

BioXcel Therapeutics is utilizing artificial intelligence approaches to develop medicines in neuroscience and immuno-oncology. The company’s drug re-innovation approach “leverages existing approved drugs and/or clinically validated product candidates together with big data and proprietary machine learning algorithms to identify new therapeutic indices,” BioXcel states. The company’s commercial product, IGALMI, developed as BXCL501, is a proprietary, sublingual film formulation of dexmedetomidine approved for the acute treatment of agitation associated with schizophrenia or bipolar I or II disorder in adults.

NanoString Technologies says it offers “an ecosystem of innovative discovery and translational research solutions” to map the universe of biology – including the GeoMx Digital Spatial Profiler, the CosMx Spatial Molecular Imager and the AtoMx Spatial Informatics Platform.

Genprex is a clinical-stage gene therapy company focused on developing life-changing therapies for patients with cancer and diabetes. Genprex’s technologies are designed to administer disease-fighting genes to provide new therapies for large patient populations with cancer and diabetes who currently have limited treatment options, the company says.

Apellis Pharmaceuticals says the company “ushered in the first new class of complement medicine in 15 years” with the approval of the first and only targeted C3 therapy. Apellis is advancing this science to “continually develop transformative medicines for people living with rare, retinal, and neurological diseases,” it stated.

Axsome Therapeutics is developing and delivering novel therapies for central nervous system, or CNS, conditions that have limited treatment options. AXS-05 is a novel, oral, patent protected, investigational N-methyl-D-aspartate receptor antagonist with multimodal activity under development for the treatment of Alzheimer’s disease agitation and other central nervous system disorders.

Recent news on these stocks:

February 7

Genprex announced the expansion of its nonclinical programs into new indications through Sponsored Research Agreements and Material Transfer Agreements with multiple academic research collaborators to study TUSC2, the tumor suppressor gene used in Genprex’s lead drug candidate, REQORSA, or quaratusugene ozeplasmid, and NPRL2, another tumor suppressor gene. The new indications being evaluated include ALK-positive lung cancer and other additional programs that are not disclosed at this time. Genprex’s expanded nonclinical programs include these additional studies with TUSC2 and NPRL2: TUSC2 in ALK-EML4 positive translocated lung cancer at the University of Michigan Rogel Cancer Center; TUSC2 in metabolism at Meharry Medical College in Nashville, Tennessee; NPRL2 in lung cancers with a major cancer research center in Houston, Texas. ALK-EML4 positive translocated lung cancer is a subset of non-small cell lung cancer (NSCLC) that impacts young and relatively healthy individuals. Since the discovery of the ALK-EML4 translocation, there has been research into targeting and treating this malignancy, which has led to approval by the U.S. Food and Drug Administration (FDA) of various ALK-targeted therapies including crizotinib, alectinib and lorlatinib. Although these compounds provide significant benefit in treating ALK-EML4-driven malignancies initially, resistance ultimately develops. The 5-year survival rate of ALK-EML4 translocated lung cancers is 40.9%, which is higher than other types of lung cancer but we believe leaves substantial room for improvement. TUSC2 is a tumor suppressor gene that is frequently deleted in lung cancer. In fact, approximately 82% of all NSCLCs lack or express decreased amounts of TUSC2 tumor suppressor protein. ALK translocations are found in approximately 5% of NSCLCs. Research collaborators at the Rogel Cancer Center’s Judith Tam ALK Lung Cancer Research Initiative are studying the combination of Genprex’s REQORSA, which uses the TUSC2 tumor suppressor gene, with various ALK inhibitors. An abstract submitted by these researchers was accepted for presentation at the 2024 AACR Annual Meeting.

February 6

After Novartis (NVS) announced that it intends to buy MorphoSys, Adam Feuerstein, the Senior Writer in Biotech for STAT, argued that the “deal will not close.” Feuerstein forecasts: “Six months from now, or sooner, Novartis will walk away – slightly embarrassed but otherwise unscathed – happy to pay a small breakup fee to MorphoSys to avoid owning a drug for myelofibrosis that regulators turned away. MorphoSys will not fare as well from the breakup. Its future, and that of the drug called pelabresib at the center of the deal, will be thrown into limbo.”

After STAT News published a column by Adam Feuerstein that contended that Novartis is going to walk away from its just-announced deal to acquire MorphoSys, a spokesperson for the German drug developer said in an emailed statement to Bloomberg News that “This story is factually wrong.” Novartis didn’t immediately respond to a Bloomberg News request for comment, the news service noted. Feuerstein acknowledges the view in his report is speculation, but cites “separate conversations with two people familiar with pelabresib and the debate inside Novartis” over the deal, Bloomberg noted.

BioXcel Therapeutics announced the completion of patient enrollment in the safety lead-in portion of the investigator-sponsored Phase 2 trial of BXCL701 in combination with KEYTRUDA in previously treated metastatic pancreatic ductal adenocarcinoma, PDAC. BioXcel Therapeutics, through its OnkosXcel Therapeutics immuno-oncology subsidiary, is collaborating with Georgetown Lombardi’s Dr. Louis Weiner, director of the cancer center, and Dr. Benjamin Weinberg, the study’s principal investigator. BioXcel Therapeutics and Merck & Co. (MRK) are providing BXCL701 and KEYTRUDA for the trial, respectively. “Pancreatic cancer represents a significant unmet medical need, ranking as the third-leading cause of cancer deaths, yet remains an exceptionally difficult cancer to treat. No novel therapies have emerged in decades, and overall survival for advanced disease has not improved in over 10 years,” said Dr. Weiner. “Building on results from the preclinical work conducted in our lab, we are excited to evaluate BXCL701 in this important trial as a potential treatment for advanced pancreatic cancer.”

February 5

Novartis announced that it has entered into an agreement to make a voluntary public takeover offer to acquire MorphoSys AG, a Germany-based, global biopharmaceutical company developing innovative medicines in oncology. The acquisition, which is subject to customary closing conditions, including a minimum acceptance threshold of 65% of outstanding shares tendered in the takeover offer and regulatory approvals, further expands and complements Novartis pipeline in oncology, one of its priority therapeutic areas, while also enhancing Novartis global footprint in hematology. Upon completion of the acquisition, Novartis will own pelabresib, a novel and potentially practice changing treatment option with a well-tolerated safety profile provided in combination with ruxolitinib for patients with myelofibrosis. It will also include tulmimetostat, an early-stage investigational dual inhibitor of enhancer of zeste homolog 1 and 2 proteins currently being tested in patients with solid tumors or lymphomas. Under the agreed transaction, which has been unanimously approved by the Board of Directors of both companies, Novartis will make a voluntary public takeover offer for all no-par value bearer shares of MorphoSys AG for EUR 68 per share, or an aggregate of EUR 2.7B. The transaction is subject to customary closing conditions, including acceptance of the takeover offer by at least 65% of MorphoSys AG’s outstanding shares and receipt of regulatory approvals and is expected to close in the first half of 2024. Until the transaction closes, MorphoSys AG will continue to operate as a separate, independent company.

Adverum Biotechnologies has agreed to sell approximately 106.25M shares of its common stock to a select group of institutional and accredited healthcare specialist investors in a private placement, at a price per share of $1.20, representing a premium of approximately 20% to Adverum’s 30-day volume-weighted average price. The financing is expected to close on February 8, subject to customary closing conditions. Adverum anticipates the gross proceeds from the private placement to be approximately $127.5M, before deducting any offering related expenses. The proceeds from this financing, combined with current cash, cash equivalents and marketable securities, are expected to be sufficient to fund the current operating plan into late 2025. TD Cowen and Truist Securities acted as placement agents on the offering.

Jefferies upgraded Apellis Pharmaceutical to Buy from Hold with a price target of $80, up from $68. The analyst said recent Syfovre updates suggest fewer new vasculitis cases. Jefferies’ tracker suggests vasculitis rate has come down and it not as concerned about the competitive landscape after Izervay’s full two data, the analyst told investors in a research note. The Syfovre launch is going well and the firm’s survey suggests doctors are getting more bullish on Syfovre’s commercial opportunity, said Jefferies.

February 4

NanoString Technologies announced that steps are being taken “to protect its business, customers, employees and its mission to ‘Map the Universe of Biology.'” With support from key creditors, NanoString and certain of its subsidiaries have voluntarily initiated a chapter 11 restructuring proceeding in the United States Bankruptcy Court for the District of Delaware. Coincident with this proceeding, NanoString is exploring strategic alternatives in support of the company’s mission and for the benefit of its stakeholders, including the potential sale of the company or product lines. “The unexpected outcome of the November GeoMx patent litigation trial in Delaware and the unusually large magnitude of the damages awarded by the jury have forced us to take proactive steps to protect our stakeholders, customers and employees,” said Brad Gray, President and CEO of NanoString. “NanoString has powerful product platforms, strong relationships with our customers throughout the scientific community, an enviable workforce, and conviction in the integrity of our innovation process. We believe chapter 11 protection will provide us with the necessary breathing room to continue to serve our customers while we address our litigation and the related financial challenges.”

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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.