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: 

• Genfit (GNFT), 4,020% surge in interest
• CytomX Therapeutics (CTMX), 2,967% surge in interest
• Cymabay Therapeutics (CBAY), 1,134% surge in interest
• VBI Vaccines (VBIV), 1,048% surge in interest
• Aurinia Pharmaceuticls (AUPH), 160% surge in interest

Pipeline and key clinical candidates for these companies:

Genfit is a late-stage biopharmaceutical company dedicated to improving the lives of patients with rare and severe liver diseases characterized by high unmet medical needs. Genfit’s R&D pipeline covers six therapeutic areas via seven programs which explore the potential of differentiated mechanisms of action, across a variety of development stages, including acute on-chronic liver failure, hepatic encephalopathy, cholangiocarcinoma, urea cycle disorder, organic acidemias and primary biliary cholangitis. Beyond therapeutics, Genfit’s pipeline also includes a diagnostic franchise focused on NASH and ACLF.

CytomX is a clinical-stage, oncology-focused biopharmaceutical company whose pipeline comprises seven therapeutic candidates across multiple treatment modalities including antibody-drug conjugates, or “ADCs,” T-cell engaging bispecific antibodies, or “TCBs,” and immune modulators such as cytokines and checkpoint inhibitors. CX-2029 is an investigational conditionally activated antibody-drug conjugate directed toward CD71, which has demonstrated encouraging antitumor activity in patients with squamous non-small cell lung cancer and is being developed in collaboration with AbbVie (ABBV). CytomX’s clinical pipeline also includes cancer immunotherapeutic candidates against validated targets such as the CTLA-4-targeting Probody therapeutics, BMS-986249 and BMS-986288, partnered with Bristol Myers Squibb (BMY), as well as CX-904, a conditionally activated T-cell-engaging bispecific antibody targeting the epidermal growth factor receptor on tumor cells and the CD3 receptor on T cells, which is partnered with Amgen (AMGN).

CymaBay Therapeutics is focused on liver and other chronic diseases that have high unmet medical need. The company has received breakthrough therapy designation from the FDA, PRIority MEdicines status from the European Medicines Agency and orphan drug status in the U.S. and Europe for seladelpar, a first-in-class treatment for people with primary biliary cholangitis, or PBC.

VBI Vaccines is a biopharmaceutical company focused on virus-like particles, or VLPs, including a proprietary enveloped VLP, eVLP, platform technology. VBI develops vaccine candidates that mimic the natural presentation of viruses, designed to elicit the innate power of the human immune system. “VBI is committed to targeting and overcoming significant infectious diseases, including hepatitis B, coronaviruses, and cytomegalovirus, as well as aggressive cancers including glioblastoma,” the company says.

Aurinia Pharmaceuticals is focused on delivering therapies to treat targeted patient populations that are impacted by serious diseases with a high unmet medical need. In January 2021, the company introduced Lupkynis, which it notes is the first FDA-approved oral therapy dedicated for the treatment of adult patients with active lupus nephritis.

Recent news on these stocks:

July 3

H.C. Wainwright raised the firm’s price target on Genfit to $11 from $9 and kept a Buy rating on the shares. The company announced that elafibranor met the primary composite endpoint in the ELATIVE pivotal Phase 3 trial for primary biliary cholangitis patients with inadequate response or intolerance to ursodeoxycholic acid, the analyst tells investors in a research note. The firm hoped to see a more comprehensive ELATIVE dataset, but says management noted that additional data are currently under embargo for upcoming medical conferences. It believes Ipsen and Genfit can now advance towards a new drug application submission by year-end 2023, with potential FDA approval in the second half of 2024. H.C. Wainwright learned from management that both events would trigger milestone payments to Genfit.

William Blair said Genfit and Ipsen’s (IPSEY) top-line results from the Phase III ELATIVE trial of elafibranor in primary biliary cholangitis leave room for CymaBay Therapeutics’ Seladelpar to emerge as best-in-class. The analyst is “encouraged” by the numerically higher rate of cholestasis response for seladelpar versus elafibranor. Furthermore, the firm is optimistic that seladelpar could show a statistically significant reduction in itch. Blair believes a “competitive overhang” on CymaBay shares has now been removed and kept an Outperform rating on the name.

June 30

CytomX Therapeutics has entered into an agreement with BVF Partners for a private placement that is expected to result in initial gross proceeds of approximately $30 million. In the private placement, CytomX is selling pre-funded warrants to purchase up to 14,423,077 shares of common stock, accompanying Tranche 1 warrants to purchase up to 5,769,231 shares of common stock and accompanying Tranche 2 warrants to purchase up to 5,769,231 shares of common stock, at a combined price of $2.08 per share of pre-funded warrant and accompanying common warrants, representing a premium of 25% to volume weighted average price over the prior 30 trading days through June 28, 2023. Each pre-funded warrant will have an exercise price of $0.00001 per share of common stock, will be exercisable immediately and will be exercisable for 20 years. The accompanying Tranche 1 common warrants will have an exercise price of $4.16 per share of common stock, will be immediately exercisable and expire on July 3, 2025 and the accompanying Tranche 2 common warrants will have an exercise price of $6.24 per share of common stock, will be immediately exercisable and expire on July 3, 2026. CytomX anticipates aggregate initial gross proceeds from the offering will be approximately $30 million, which are expected to extend the Company’s cash runway into the second half of 2025, based on CytomX’s current operating plan. CytomX also has the potential to receive up to an additional $60 million if all warrants are fully exercised for cash.

June 29

Aurinia Pharmaceuticals “announced that its board of directors has initiated an exploration of strategic alternatives. As part of this process, the Board will consider a wide range of options for the company including, but not limited to, a potential sale, merger, or other strategic transaction. There can be no assurance that this process will result in the company pursuing a particular transaction or other strategic outcome. Aurinia has not set a timetable for completion of this process, and it does not intend to disclose further developments unless and until it determines that further disclosure is appropriate or necessary. To assist in the review process, Aurinia has retained JP Morgan as its financial advisor, Skadden, Arps, Slate, Meagher & Flom, LLP as its US legal counsel, and Borden Ladner Gervais LLP as its Canadian legal counsel.”

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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.