R&D
Amgen averts embarrassment
Amgen's roughly $28 billion acquisition of Horizon Therapeutics, disclosed in December, was predicated on the belief that Horizon's best-selling drug still had room to grow. Yesterday brought data that made Amgen look shrewd — but the ultimate wisdom of paying so much for Horizon remains to be determined.
The news is that Tepezza, Horizon's treatment for thyroid eye disease, succeeded in a trial enrolling a broader patient population. The results are expected to lead payers to loosen restrictions on the drug, which accounts for about $2 billion a year in revenue, and increase the number of people eligible to receive it.
But in order for Amgen to break even on its acquisition, Tepezza will have to become a $4 billion drug, according to Evercore ISI analyst Umer Raffat, who has been skeptical of the price tag on Horizon. And there's no guarantee the latest data will make enough of a difference to double its revenue. Instead, Tepezza's positive trial ensures that Amgen has averted what would have been an embarrassing failure, and there's plenty of work ahead to turn it into a success.
Regulatory
The FDA's latest Alzheimer's do-over
The last time the FDA convened a panel of experts to talk about a new Alzheimer's disease drug, a bunch of them resigned in protest and then a scathing congressional report chastised the agency for running a review "rife with irregularities." The next one, scheduled for this summer, will likely be different.
On June 9, the FDA's advisers will convene to discuss whether the agency should grant full approval to Leqembi, a medicine developed by partners Eisai and Biogen, which won conditional approval in January. Based on Leqembi's supporting data, the drug is widely accepted to win over the panel and secure approval the following month.
The meeting marks the latest opportunity to depart from the disastrous review, approval, and launch of Aduhelm, the companies' Biogen-developed Alzheimer's treatment that got a resounding rejection from the same panel in 2020. Leqembi, under Eisai's direction, has successively succeeded where its predecessor failed, and the panel review is the next step.
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