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: 

• Tonix Pharmaceuticals (TNXP), 202% surge in interest
• Viking Therapeutics (VKTX), 179% surge in interest
• Cabaletta Bio (CABA), 143% surge in interest
• Madrigal Pharmaceuticals (MDGL), 137% surge in interest
• Diamedica Therapeutics (DMAC), 105% surge in interest

Pipeline and key clinical candidates for these companies:

Tonix is focused on central nervous system, rare disease, immunology and infectious disease product candidates. Tonix’s CNS portfolio includes both small molecules and biologics to treat pain, neurologic, psychiatric and addiction conditions. Tonix’s lead CNS candidate, TNX-102 SL, is in mid-Phase 3 development for the management of fibromyalgia with a new Phase 3 study launched in the second quarter of 2022 and interim data expected in the second quarter of 2023. TNX-102 SL is also being developed to treat Long COVID, a chronic post-acute COVID-19 condition. Tonix initiated a Phase 2 study in Long COVID in the third quarter of 2022 and expects interim data in the second quarter of 2023. TNX-1300 is a biologic designed to treat cocaine intoxication and has been granted Breakthrough Therapy designation by the FDA.

Viking Therapeutics is focused on the development of novel first-in-class or best-in-class therapies for the treatment of metabolic and endocrine disorders. The company’s clinical programs include VK2809, a novel, orally available, small molecule selective thyroid hormone receptor beta agonist for the treatment of lipid and metabolic disorders, which is currently being evaluated in a Phase 2b study for the treatment of biopsy-confirmed non-alcoholic steatohepatitis, or NASH, and fibrosis.

Cabaletta Bio is focused on the discovery and development of engineered T cell therapies that have the potential to provide a deep and durable, perhaps curative, treatment for patients with autoimmune diseases. The CABA platform encompasses chimeric antigen receptor T cells for autoimmunity and Cabaletta Bio’s proprietary chimeric autoantibody receptor T cells.

Incyte is a global biopharmaceutical company focused on finding solutions for serious unmet medical needs through the discovery, development and commercialization of proprietary therapeutics.

DiaMedica Therapeutics is a clinical stage biopharmaceutical company committed to improving the lives of people suffering from serious diseases with a focus on acute ischemic stroke. DiaMedica’s lead candidate DM199 is the first pharmaceutically active recombinant form of the KLK1 protein, an established therapeutic modality in Asia for the treatment of acute ischemic stroke and other vascular diseases.

Recent news on these stocks:

June 29

After hosting investor meetings with management, William Blair said Viking Therapeutics continues to build momentum around the “highly compelling” clinical data from the Phase IIb VOYAGE study in biopsy-confirmed nonalcoholic steatohepatitis with its lead asset VK2809. In light of new data released at the American Diabetes Association last week, “investors are understandably eager to gain a deeper understanding” of potential implications to Viking’s VK2809 and VK2735 programs, the analyst told investors in a research note. While “impressed” by the weight loss, metabolic benefit, and steatosis improvement of retatrutide, along with data from orforglipron and high-dose oral semaglutide, the firm says that due to the heterogeneous nature of metabolic dysfunction, coupled with inter-patient variability of disease drivers, the market “will unlikely follow a one-size-fits-all dynamic.” As such, Blair views the 24% retraction in Viking’s valuation as “excessive” and is a buyer on recent weakness. The firm kept an Outperform rating on the name.

June 27

Canaccord noted that NASH stocks continue to get pummeled coming out of this year’s EASL conference and ADA annual meeting despite positive data and general news. There are several general factors that are coming into play, but the main instigator is Eli Lilly’s (LLY) Phase II data from retatrutide, a GLP-1/GIP/glucagon receptor agonist. Drugs that target GLP-1, GLP-1/GIP and GLP-1/GIP/glucagon are referred to collectively as incretins. The firm believes incretin drugs approved and in development should be viewed as complementary to NASH therapeutics in development and not as competitors. In addition, lean NASH patients could be another differentiating group for drugs with an anti-fibrotic effect. Canaccord would be strong buyers of Madrigal Pharmaceuticals and Akero Therapeutics (AKRO) given the recent selloff. The firm has a Buy rating on both stocks.

June 26

Tonix Pharmaceuticals and its wholly-owned subsidiary Tonix Medicines announced that they have entered into an agreement to acquire two currently-marketed products from Upsher-Smith Laboratories Zembrace SymTouch 3 mg and Tosymra 10 mg. Zembrace SymTouch and Tosymra are both indicated for the treatment of acute migraine with or without aura in adults. Zembrace SymTouch is the only branded sumatriptan autoinjector professionally promoted in the United States and is designed for ease of use and favorable tolerability with a low 3 mg dose. Tosymra is a novel intranasal sumatriptan product formulated with a permeation enhancer that provides rapid and efficient absorption of sumatriptan. Collectively, these products generated product sales of approximately $23M for FY22. Under the terms of the agreement with Upsher-Smith: Tonix Medicines will make an upfront payment of $12M in cash to Upsher-Smith at closing and an additional $3M in March 2024, or upon earlier conclusion of the transition services period. In addition, Tonix Medicines will pay approximately $10M in cash to Upsher-Smith at closing to acquire certain product-related inventories. To support the transition of the products, Upsher-Smith has agreed to provide certain commercial operations, regulatory and other transition services to Tonix Medicines for up to nine months after closing, in exchange for agreed upon service fees. The assets to be acquired include New Drug Applications issued by the FDA for the products, as well as patents and trademarks related to the products in the United States and in certain countries outside the United States. The closing is expected to take place on June 30.

In regulatory filing, DiaMedica Therapeutics disclosed that its director Richard Pilnik and Chief Business Officer David Wambeke each bought 38.36K shares of common stock on June 23rd in a total transaction size of $150K for each person.

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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.