Showing posts with label bloomberg. Show all posts
Showing posts with label bloomberg. Show all posts

Monday, September 17, 2012

Excellent mid-term investment opportunity: Trius Therapeutics (NASDAQ:TSRX) and its late stage lead drug Tedizolid

Written by: Ankit Desai (twitter:@ankitdesai6)
Trius Therapeutics (NASDAQ: TSRX) is a biopharmaceutical company focused on the developing innovative antibiotics for life-threatening infections. The current drug named Tedizolid  phosphate is in its late clinical stage.

Tedizolid phosphate is a 2nd generation oxazolidinone being developed for the treatment of serious gram-positive infections, including those caused by MRSA. There is also a strong growth of MRSA treatment days. In the day and age of cost-containment, the lower number of hospital days is highly preferred.

Tedizolid phosphate is a novel prodrug that is cleaved in the blood stream to the active compound from Tedizolid phosphate to Tedizolid.  As a second generation oxazolidinone, tedizolid phosphate is chemically different from, and designed for improved potency, resistance and spectrum of activity over, the first generation oxazolidinones such as linezolid (Zyvox). There is only one approved first generation oxazolidinone, linezolid, which is currently the leading branded antibiotic for serious gram-positive infections, with reported worldwide sales of $1.3 billion in 2011.

A recent journal article has clearly demonstrated that there is an active emergence of linezolid-resistance Staphylococcus aureus. Linezolid remains active against >98% of Staphylococcus, with resistance identified in 0.05% of Staphylococcus aureus and 1.4% of coagulase-negative Staphylococcus (CoNS). The emergence of linezolid resistance in Staphylococcus poses significant challenges to the clinical treatment of infections caused by these organisms, and in particular CoNS (Gu B. J Antimicrob Chemother. 2012).

Tedizolid can be given IV or orally for the treatment of serious gram-positive bacterial infections, including those caused by methicillin-resistant Staphylococcus aureus (MRSA). Tedizolid phosphate has successfully completed a Phase 3 trial in patients with acute bacterial skin and skin structure infections (ABSSSI).

VisualDx - ABSSI
Acute bacterial skin and skin structure infections (ABSSI) infections involve deeper tissue or require surgical intervention or are associated with a significant underlying disease (e.g., diabetes or systemic immunosuppression) that complicates response to therapy. A variety of pathogens may be identified in ABSSSI but the two most common Gram-positive pathogens are Staphylococcus aureus and Streptococcus pyogenes. The significant increase in the incidence of MRSA in community as well as hospital acquired infections has resulted in a need for therapy of ABSSSI that is effective against MRSA.

Tedizolid phosphate offers a number of important potential advantages over linezolid, including greater potency, once daily dosing, predictable drug exposure, a shorter course of therapy, in vivo bactericidal (i.e., bacterial killing) activity, lower frequency of resistance, activity against linezolid-resistant bacterial strains and an improved safety profile. TSRX is planning to develop this drug to treat multiple clinical indications, such as infections of the lung and blood, such as, hospital acquired pneumonia (HAP), ventilator acquired pneumonia (VAP) and bacteremia.

Greater potency 
Shorter dosing regimen and once daily dosing
·     Tedizolid Phosphate is administered once daily for six days for the treatment of cSSSI (now termed ABSSSI), as compared to twice daily for 10 to 14 days for linezolid. This tremendously help with patient convenience·          
·     Activity against gram-positive drug-resistant strains and select atypical and gram-negative bacteria
·     Tedizolid phosphate is also active against gram-negative bacterium Legionella and strains of the atypical bacterium Chlamydia, and thus may have utility in treating lower respiratory tract infections involving these bacteria.
·      Favorable and predictable pharmacokinetics
·     There is little patient-to-patient variability in the concentration of tedizolid phosphate in blood, as compared to linezolid. As a result, we expect that tedizolid phosphate will have more predictable drug exposure which may lead to a more uniform efficacy and safety profile across different patients when compared to linezolid.
·       Fewer drug-drug interactions
·      Unlike linezolid, tedizolid phosphate has not been shown to inhibit the monoamine oxidase system which mediates the metabolism of tyramine, SSRI's and vasoconstrictors.
Tedizolid phosphate may provide MDs with a safe antibiotic for the treatment of serious gram-positive infections that is more potent and more convenient than linezolid and other currently available alternatives.


1st Pivotal Phase 3 trial (ESTABLISH-1):
Trius has announced positive top-line results from our first Phase 3 clinical trial in acute bacterial skin and skin structure infections, or ABSSSI.  The study was looking at Tedizolid  vs. Linezolid for the Treatment of Acute Bacterial Skin and Skin Structure Infections. (ABSSSI). This was a randomized, double-blind, double dummy, multicenter Phase 3 study of oral Tedizolid 200 mg once daily for 6 days versus oral Zyvox (linezolid) 600 mg every 12 hours for 10 days for the treatment of ABSSSI in adults.

Primary objective: To determine the noninferiority in the early clinical response rate (see the image below)

Patients with systemic signs of infection diagnosed with acute bacterial skin and skin structure infection (ABSSSI) and patient diagnosed with Cellulitis/ erysipelas, major cutaneous abscess, or wound infections were included in the study. Patients with uncomplicated skin infections, severe sepsis or septic shock and ABSSSI solely due to gram-negative pathogens were excluded to clearly assess the primary endpoint.

Results:
In the Intent to Treat (ITT) analysis set, tedizolid achieved the primary objective of non-inferiority (10% non-inferiority margin) to linezolid in the primary and secondary efficacy endpoints.

Both tedizolid and linezolid were generally well tolerated with comparable overall safety profiles, with drug-related treatment emergent adverse events (TEAE) reported in 24.2% of tedizolid patients versus 31.0% of linezolid treated patients.

TSRX is currently running a 2nd Phase 3 trial which expects to report top-line data in early 2013. 
This is also a randomized, double-blind, double-dummy, multicenter, global Phase 3 study of IV to oral TR-701 FA 200 mg once daily for 6 days versus IV to oral Zyvox® (linezolid) 600 mg every 12 hours for 10 days for the treatment of ABSSSI in adults. Patients are to start treatment with at least 2 IV doses and may receive IV therapy for the entire treatment duration. The 113 study is the first clinical trial conducted in collaboration with Bayer HealthCare and will recruit patients in North and South America, Europe, Australia, New Zealand, and South Africa.

The primary endpoint for the 2nd phase 3 pivotal trial is to determine the noninferiority (NI) in the early clinical response rate of intravenous (IV) to oral 6 day TR-701 free acid (FA) compared with that of IV to oral 10-day linezolid treatment at 48-72 hours after the first infusion of study drug in the intent-to-treat (ITT) analysis set in patients with acute bacterial skin and skin structure infections (ABSSSI).
In this trial, patients requiring IV antibiotic therapy and with systemic signs of infection diagnosed with ABSSSI and diagnosed with Cellulitis/ erysipelas, major cutaneous abscess, or wound infections were included. Patients with uncomplicated skin infections, severe sepsis or septic shock and ABSSSI solely due to gram-negative pathogens were excluded. As you can see the inclusion and exclusion criteria are similar to 1st pivotal phase 3 trial. With this in mind it the chances of this trial being successful are very high.

On August 6, 2012, $TSRX reported that they have $84M in cash and R&D expense for the three month (April, May and June) was $16.4M so when we extrapolate that or multiply that by 4 it gives us a rough estimation of their burn rate compared to their net cash that they have. $16M x 4 = $64M.  Since they have enough cash on their hand going into the top-line Phase 3 trial results, I believe the possibility of offering is low. The share price has gone up 8%-10% in month of September 2012. They recently reported data on Broad-spectrum Antibiotic at 52nd Annual ICAAC Meeting. With the release of the abstracts and various presentations at academic centers and financial firms, TSRX is creating a lot of buzz in the investor community, medical community as well as retail investors. The upcoming Phase 3 (ESTABLISH-2) trial will certainly add on to the anticipation and excitement to the company. I also feel strong about the management and their expertise and seeing great potential in TSRX. Once again, I am looking forward to the announcement by TSRX soon about the potential completion PR or more update on their Phase 3 trial result.

Resources: Trius Therapeutics Investor Presentation and Corporate presentations, PubMed, Bloomberg, MicroMedex drug database, Clinicaltrial.gov

Disclosure: May initiate a position in next 72hours

Monday, July 16, 2012

Alnylam Pharma (ALNY)'s ALN-TTR02 able to knockdown TTR proteins by 94%

Alnylam Pharmaceuticals Inc. (ALNY), the developer of a treatment for a rare genetic disorder, rose the most ever after the drug showed promise in an early clinical trial.

Alnylam Pharmaceuticals Inc announced the achievement of positive clinical results from its Phase I trial with ALN-TTR02, an RNAi therapeutic targeting the transthyretin (TTR) gene for the treatment of TTR-mediated amyloidosis (ATTR).

 
My analysis: As the pharmacogenomics and personalized medicine are coming in the forefront the companies like Alnylam Pharma (ALNY) are benefiting a lot from it. Due to smaller market capitalization of these companies, they tend to rise exponentially on positive press release.

I feel this rally will not last too long before investors realize that this is just the Phase I trial data which are mainly toxicity data. This data may get presented at various investor conferences but this drug still has lots of clinical inspection to go thru.

This company is certainly not a M&A target due to its specific focused pipeline. It will be intersteing to see in coming months how this company pans out.

TTR medicated amyloidosis
The disease is caused by a mutation in the gene responsible for producing the transthyretin protein. In people with the genetic defect, transthyretin made by the liver breaks apart, forms into clumps, and damages the nerves and heart. Currently a liver transplant is the only available treatment.
Alnylam’s drug, called ALN-TTR02, stops production of transthyretin. The company is focusing on patients with TTR-FAP, or transthyretin familial amyloid polyneuropathy. The company estimates that as many as 10,000 patients have the disease. In TTR-FAP, the protein attacks the body’s longest nerves first, often killing them within a decade as the body shuts down.

Results from this study show that administration of ALN-TTR02 leads to robust knockdown of serum TTR protein levels of up to 94%; the overall results were highly significant (p<0.00001 by ANOVA). Suppression of TTR, the disease-causing protein in ATTR, was found to be rapid, dose dependent, durable, and specific after just a single dose.

 Alnylam recently reported that it has initiated a Phase II study of ALN-TTR02 in patients with ATTR and has guided that its goal is to start a pivotal trial in 2013.

The primary objective of the study was to evaluate the safety and tolerability of a single dose of ALN-TTR02, with subjects being enrolled into five sequential cohorts of increasing doses ranging from 0.01 to 0.50 mg/kg. In addition, pharmacodynamic activity was evaluated with serial measurements of serum TTR protein levels through at least day 56.

Preliminary data from this study showed that a single dose of ALN-TTR02 resulted in rapid, dose-dependent, durable, and specific knockdown of serum TTR levels. Even at doses as low as 0.15 mg/kg, substantial serum TTR suppression was achieved, with a mean 81.9% knockdown at nadir.

Sources: Reuters and Bloomberg

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