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: 

• Synlogic (SYBX), 577% surge in interest
• Lineage Cell Therapeutics (LCTX), 195% surge in interest
• Ocular Therapeutix (OCUL), 87% surge in interest
• BioXcel Therapeutics (BTAI), 62% surge in interest
• Nanostring Technologies (NSTG), 54% surge in interest
• Arbutus Biopharma (ABUS), 36% surge in interest

Pipeline and key clinical candidates for these companies:

Synlogic is advancing therapeutics based on synthetic biology. Synlogic’s pipeline includes its lead program in phenylketonuria, or PKU, which has demonstrated proof of concept with plans to start a pivotal, Phase 3 study in the first half of 2023, and additional novel drug candidates designed to treat homocystinuria, enteric hyperoxaluria and gout. In addition to its clinical programs, Synlogic has a research collaboration with Roche (RHHBY) on the discovery of a novel Synthetic Biotic for the treatment of inflammatory bowel disease or IBD. Synlogic has also developed two drug candidates through a research collaboration with Ginkgo Bioworks (DNA): SYNB1353, designed to consume methionine for the potential treatment of HCU, and SYNB2081, designed to lower uric acid for the potential treatment of gout.

Lineage Cell Therapeutics is a clinical-stage biotechnology company developing novel cell therapies for unmet medical needs. Lineage’s programs are based on its robust proprietary cell-based therapy platform and associated in-house development and manufacturing capabilities. With this platform Lineage develops and manufactures specialized, terminally differentiated human cells from its pluripotent and progenitor cell starting materials.

Ocular Therapeutix is focused on the formulation, development, and commercialization of therapies for diseases and conditions of the eye using its proprietary bioresorbable hydrogel-based formulation technology. Ocular Therapeutix’s first commercial drug product, Dextenza, is an FDA-approved corticosteroid for the treatment of ocular inflammation and pain following ophthalmic surgery and ocular itching associated with allergic conjunctivitis. Ocular Therapeutix’s earlier stage development assets include: OTX-TKI, currently in Phase 1 clinical trials for the treatment of wet AMD and diabetic retinopathy; OTX-TIC, currently in a Phase 2 clinical trial for the treatment of primary open-angle glaucoma or ocular hypertension; and OTX-CSI for the chronic treatment of dry eye disease and OTX-DED for the short-term treatment of the signs and symptoms of dry eye disease, both of which have completed Phase 2 clinical trials.

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.

Arbutus Biopharma is a clinical-stage biopharmaceutical company leveraging its extensive virology expertise to identify and develop novel therapeutics with distinct mechanisms of action, which can be combined to provide a functional cure for patients with chronic hepatitis B virus (cHBV). The company’s pipeline of internally developed, proprietary compounds includes an RNAi therapeutic, imdusiran (AB-729) and an oral PD-L1 inhibitor, AB-101. Imdusiran has generated meaningful clinical data demonstrating an impact on both surface antigen reduction and reawakening of the HBV-specific immune response. Imdusiran is currently in two Phase 2a combination clinical trials. AB-101 is currently being evaluated in a Phase 1a/1b clinical trial.

Recent news on these stocks:

February 12

BioXcel Therapeutics announced that the U.S. Food and Drug Administration has designated as a Fast Track development program the investigation of BXCL701 in combination with a CPI for the treatment of patients with metastatic small cell neuroendocrine prostate cancer with progression on chemotherapy and no evidence of microsatellite instability. The FDA grants Fast Track designation to facilitate the development and expedite the review of medicines to treat serious conditions, fill unmet medical needs, and bring promising medicines to patients more quickly. Therapies granted this designation are given the opportunity for more frequent interactions with the FDA, a rolling review, and potential eligibility for accelerated approval and priority review.

February 9

BofA initiated coverage of Ocular Therapeutix with a Buy rating and $15 price target. Ocular is developing a pipeline of sustained release drug therapies leveraging its proprietary Elutyx platform with potential ophthalmology indications, notes the analyst, who thinks lead asset Axpaxli has the potential for a differentiated profile in wet age-related macular degeneration, or wAMD.

February 8

Synlogic announced the decision to discontinue Synpheny-3, its ongoing pivotal study of labafenogene marselecobac as a potential treatment for phenylketonuria. As a result, Synlogic’s management and its board have made the decision to evaluate strategic options for the company. The decision to end Synpheny-3 is based on results of an internal review in advance of an upcoming independent Data Monitoring Committee assessment, which indicated the trial was unlikely to meet its primary endpoint, the company said in a statement. Additionally, Synlogic said it will cease operations and reduce its workforce by more than 90%, retaining only certain employees to assist in the strategic review and assist in the discontinuation of the study. The majority of impacted roles will end in February. The company’s cash, cash equivalents and short-term investments balance at December 31, 2023 was $47.7M. Aoife Brennan is also departing as President and Chief Executive Officer as part of the reduction, and stepping down from the board. Synlogic “plans to conduct an assessment of strategic options to enhance shareholder value, which will include, but are not limited to, an acquisition, merger, reverse merger, other business combination, sales of assets, dissolution or other strategic transactions.” The company has not set a timetable for completion of this strategic review.

February 6

Lineage Cell Therapeutics announced that it entered into a definitive agreement with certain investors for the purchase and sale of 13.46M of the company’s common shares in a registered direct offering at an offering price of $1.04 per common share. The parties entered into the definitive agreement before markets opened on February 6. The closing of the offering is expected to occur on or about February 8, subject to the satisfaction of customary closing conditions. Broadwood Partners, which is affiliated with Neal Bradsher, a member of the company’s board, agreed to purchase 6.73M common shares in the offering, and Don Bailey, a member of the company’s board of directors, agreed to purchase approximately 100K common shares in the offering.

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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.