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Drug pricing 'extortion,' the case for CureVac, & a sea change in RSV

June 9, 2023
National Biotech Reporter
Hello, everyone. Damian here with the legal implications of AI-designed drugs, another milestone in preventing RSV, and some analysis of what could be a watershed lawsuit.

The need-to-know this morning

  • Eisai is going before a panel of FDA advisers, who will vote on whether Leqembi, its treatment for Alzheimer's disease, merits a full approval. Follow our live coverage here
  • The FDA accepted marketing applications for a CRISPR-based treatment called exa-cel  from Vertex Pharmaceuticals and CRISPR Therapeutics — the first CRISPR-based medicine to undergo regulatory review. The filing for sickle cell disease was granted priority review with a decision set for Dec. 8. The second filing, for beta thalassemia, was granted standard review and will be decided by March 30, 2024. 
  • Updated clinical trial results showing the long-term benefits of exa-cel were presented at a European hematology meeting, STAT's Drew Joseph reports

Podcast

Are drug prices protected by the Constitution?

Will Medicare embrace Alzheimer's disease treatments? And should lawyers be allowed to use thesauruses?

We cover all that and more this week on "The Readout LOUD," STAT's biotech podcast. First, STAT Washington correspondent Rachel Cohrs joins us to explain Merck's lawsuit against the federal government and why the company believes drug pricing negotiation is "tantamount to extortion." We also discuss the health effects of Canadian wildfires, the highlights of the year's biggest cancer research conference, and what could be a watershed moment in the treatment of Alzheimer's.

Listen here.



Regulatory

The first RSV antibody is on its way

Within weeks of approving the first vaccines for RSV, the FDA appears on its way to clearing an antibody treatment meant to protect newborns and young children from the virus.

As STAT's Helen Branswell reports, a panel of expert advisers to the FDA voted in favor of Beyfortus, an antibody developed by AstraZeneca that will be marketed by Sanofi. In the first vote, the group unanimously supported using the medicine for children in the first year of life. In the second, members voted 19-2 to recommend its approval for high-risk kids in their second year.

Beyfortus is part of a sea change in the prevention of RSV, a virus that is particularly dangerous to young children and the elderly. In May, the FDA approved two vaccines, from Pfizer and GSK, for adults over the age of 60. Pfizer is also asking for its vaccine to be approved for use during pregnancy to protect newborns from infection.

Read more.


R&D

AI can't don a lab coat, but it can invent a drug

And that creates a problem for U.S. patent law. 

As STAT's Brittany Trang reports, under current regulations, the registered inventors of novel things have to be human beings, meaning an AI-designed medicine would be unpatentable. That disincentivizes drug developers from using the latest technological tools to find new medicines, industry representatives said at a congressional hearing yesterday. 

Novartis, for example, is already using a generative chemistry AI platform that was able to generate 282 antimalarial drug candidates, two of which seem to fight malaria without harming other cells on par with existing medicines. "Without patents or comparable incentives to enable that work, we would not have new treatments and cures no matter how many new molecules appear on computer screens," Corey Salsberg, global head of IP affairs at Novartis, said at the hearing.

Read more.


Markets

The case for CureVac

CureVac, a pioneer in mRNA, is perhaps best known for a world-historic fumbling of the bag, betting on an approach to the technology its peers had abandoned and then watching from the sidelines as Moderna and BioNTech won global plaudits and billions of dollars for developing Covid-19 vaccines.

The company has lost more than 80% of its value since going public in 2020, but it's still in business, and it still has its mRNA patents, and that's reason enough for a Wall Street reassessment. In a note to investors yesterday, SVB Securities analyst Mani Foroohar pitched CureVac as a battered but unbroken biotech company, one with a potentially lucrative GSK partnership and the prospect of eventually catching up to the mRNA rivals that won the pandemic race.

And even if CureVac never manages to actually develop a medicine of its own, the company's legal strategy could pay handsomely. The German firm has filed patent infringement lawsuits against Pfizer and BioNTech, seeking a royalty on the roughly $80 billion in sales the two have made on their Covid-19 vaccine. As Evercore ISI analyst Jonathan Miller pointed out in a separate note, if CureVac can pry even a modest royalty from its richer competitors, the company would be entitled to a sum greater than its current $2.3 billion valuation.


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  • GSK employees to escalate strike action in June, Reuters

Thanks for reading! Until next week,


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