Lama Daila schreef op 3 juni 2020 21:44:www.investors.com/news/technology/ulc...
Why Bristol Myers' Success In Ulcerative Colitis Sent Arena Stock Flying
Bristol Myers Squibb (BMY) reported positive ulcerative colitis treatment data Tuesday, helping shares of rival Arena Pharmaceuticals (ARNA) to pop.
The study tested Bristol Myers' Zeposia in patients with moderate to severe ulcerative colitis. At weeks 10 and 52, the experimental ulcerative colitis treatment induced clinical remission and maintained remission, respectively.
Zeposia belongs to a class of oral drugs known as sphingosine-1-phosphate receptor modules, or S1P. This is the first time an S1P drug has shown strong effectiveness in ulcerative colitis treatment, suggesting these drugs could beat out another class called janus kinase inhibitors, or JAKs.
Arena is also testing out an S1P drug, etrasimod.
“We see this outcome validating for the S1P class in ulcerative colitis and supporting our optimistic, bullish stance toward Arena's etrasimod," RBC Capital Markets analyst Kennan MacKay said in a report to clients.
Rivals In Ulcerative Colitis Treatment
On the stock market today, Arena stock charged ahead 16.2% to 68.22. Shares of Bristol Myers rose 0.6% to 60.65.
Zeposia is already approved to treat a form of multiple sclerosis. But Bristol Myers is working to use it as an ulcerative colitis treatment. In the Phase 3 study, Zeposia proved as safe in ulcerative colitis patients as it did in prior studies, Bristol Myers said in a news release.
RBC's MacKay sees room for Arena's etrasimod to become the best in class S1P drug. He maintained his outperform rating on Arena stock. Overall, the study "may suggest the S1P class can outcompete JAKs in both safety and (effectiveness)," he said.
This could be troubling for Gilead Sciences (GILD) and Galapagos (GLPG) which are testing a JAK drug called filgotinib in ulcerative colitis treatment.
In Gilead and Galapagos' recent Phase 3 study, a low dose of filgotinib didn't show statistical superiority over a placebo for clinical remission at 10 weeks. A higher dose did reach statistical significance, however it was with a weak p-value. This means researchers aren't totally confident in the result.