July 8th-12th the Healthcare sector underperformed the greater markets as evident by the XLV and the IBB closing down -.66% and -2.06%, respectfully. The XBI stayed relatively flat. Whereas the three major indices (NASDAQ, DOW, and S&P 500) all gained over +1%. As we slide right across the above picture to the 30-day and YTD (yea-to-date) time-frames the trend continues. Investors are rightly concerned over the geopolitical and industrial turmoil going on. Most notably, trade war with the worlds second largest economy (China), Iran building its nuclear arsenal, and waning global manufacturing. On the bright side, small-cap bios are still behaving in a predictable fashion. In other words, they are running up into catalytic events and the ones solid fundamentals are gaining ground. For instance, ADMA Biologics closed the week up +6.5%. Next week we kick off earnings for the big pharma. The first earnings call i will be tuning into is that of Novartis (NYSE: NVS). In particular, I will be listening to revenue performance in 2Q19 and guidance for full year 2019 for Zolgensma; Zolgensma is NVS’s gene therapy product licensed from Regenexbio (NASDAQ: RGNX). If you have not already, RGNX is a great one to buy.
On Monday July 8th Sol-Gel Technologies, Ltd. (NASDAQ: SLGL) announced that its phase 3 trial hit both its co-primary endpoints. The study evaluated SLGL’s Epsolay microencapsulated benzoyl peroxide cream as a treatment of Acne-like breakouts (papulopustular rosacea). The share price closed up +15% on Friday at $10.48.
Hookipa Pharma Inc. (NASDAQ: HOOK) gained +23% on news that the FDA accepted its Investigational New Drug application. HOOK is going to initiate a phase 1/2 clinical trial in the 2H of 2019 studying a treatment for Human Papilloma Virus (HPV)-positive cancers.
Intra-Cellular Therapies, Inc. (Nasdaq:ITCI) closed down -17% to $11.19 after its lead drug candidate Lumateperone failed to hit its primary endpoint in one phase 3 study. A second phase 3 announced concurrently hit all its endpoints. Both studies targeted patients with major depressive episodes associated with Bipolar I or Bipolar II disorder. ITCI has an FDA Advisory Committee Meeting (ADCOM) scheduled on July 29th. The ADCOM panel will be evaluating Lumateperone as a treatment for schizophrenia.
Clinical-Stage With a Catalyst
- Chiasma Inc (CHMA) $6.44
- Phase 3 data expected 3Q19
- Deciphera Pharmaceuticals Inc (DCPH) $21.60
- Phase 3 data due mid-2019.
- GlycoMimetics Inc (GLYC) $12.66
- Phase 3 data due in 2H19, possibly this month.
- Marinus Pharmaceuticals Inc (MRNS) $4.58
- Phase 3 data due in early 3Q19.
- Myovant Sciences Ltd (MYOV) $8.59
- The company’s phase 3 study LIBERTY 2 is expected to report top-line data in 3Q19. LIBERTY 1 data was announced May 14th and hit its primary endpoint.
- Retrophin Inc (RTRX) $21.55
- Phase 3 top-line data due in 3Q19.
- Rhythm Pharmaceuticals Inc (RTYM)
- Phase 3 data due 3Q19.
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