Roche’s mixed myasthenia gravis data sending these stocks in opposite directions

Roche (RHHBY) and Chugai Pharmaceutical said that while statistically significant data was observed in the primary endpoint of the Phase 3 LUMINESCE study of Enspryng in myasthenia gravis, it did “not reach expectations on the degree of clinical benefit.” The news has been sinking Tourmaline Bio’s (TRML) shares, while sending Argenx (ARGX) — which markets Vyvgart for generalized MG — and Immunovant (IMVT) higher. Of note, while Tourmaline has not initiated an MG program, the company said its decision to pursue MG would be influenced by Enspryng, according to Truist.

MG PHASE 3 TRIAL: Roche and Chugai Pharmaceutical announced results from the Phase 3 LUMINESCE study of Enspryng, an investigational treatment for generalized myasthenia gravis. Statistically significant data was observed in its primary endpoint, however the results did not reach expectations on the degree of clinical benefit, the company saidin a statement. Enspryng was well tolerated in gMG, with a safety profile consistent with Enspryng in neuromyelitis optica spectrum disorder, or NMOSD, which is the medicine’s first indication. The company further noted that the results of this study in gMG do not impact Enspryng in NMOSD, in which the medicine is already approved.

DATA READ-THROUGH: Commenting on the data, Truist says Tourmaline Bio might see weakness on Thursday after Chugai Pharmaceutical reported topline data from the Phase 3 LUMINESCE study of Enspryng, an investigational treatment for generalized MG. While Tourmaline has not initiated an MG program, the company said their decision to pursue MG will be influenced by Enspryng, the firm additionally noted. Truist awaits details for the Enspryng MG data given that TOUR006 is a differentiated IL-6 product with improvements on ADAs compared to Roche’s IL-6.

On the flip side, the firm thinks this news could be a positive for Buy-rated Immunovant and Roivant (ROIV) and the FcRn space given that Roche may not pursue MG, which would lower the competition. Truist has a Buy rating and $74 price target on Tourmaline shares.

PRICE ACTION: In morning trading, shares Tourmaline Bio have plunged almost 42% to $26.13. Moving in the opposite direction, shares of Argenx have jumped about 11% to $395.66, while shares of Immunovant have gained almost 4% to $32.71.