Argenx reports half year 2020 financial results and provides second quarter business update

On July 29, 2020 argenx (Euronext & Nasdaq: ARGX), a global immunology company committed to improving the lives of people suffering from severe autoimmune diseases and cancer, reported its half year 2020 financial results and provided a second quarter business update and outlook for the remainder of the year (Press release, argenx, JUL 29, 2020, View Source [SID1234562588]).

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"We are proud of the progress we have made during the first half of 2020 to advance our immunology pipeline and validate our first-in-class FcRn antagonist, efgartigimod. We announced positive topline results from the Phase 3 ADAPT trial, furthering our conviction that efgartigimod has the potential to significantly improve the standard of care for people with gMG as well as several other autoantibody-driven diseases. We are focused on our planned 2021 U.S. commercial launch of efgartigimod to bring this therapy to patients as quickly as possible and to advance on our ‘argenx 2021’ vision," said Tim Van Hauwermeiren, CEO of argenx.

"We also remain committed to advancing our robust pipeline, including our late-stage efgartigimod trials in additional autoimmune indications and our early-stage candidates from our Immunology Innovation Program. Regarding cusatuzumab, which we are currently developing in a global collaboration with Janssen, as clinical trial sites re-open, we are taking the opportunity to evaluate the most appropriate development strategy given the rapidly evolving treatment landscape, " continued Mr. Van Hauwermeiren.

SECOND QUARTER 2020 AND RECENT BUSINESS UPDATE

argenx continues to execute on its "argenx 2021" vision to become a fully integrated, global immunology company. The company continues to implement measures across the organization and in the operations of globally run clinical trials to minimize the impact of COVID-19 on employees, patients and their communities, physicians and ongoing business priorities.

Commercial preparations underway to support potential approval and launch of argenx’s first-in-class FcRn antagonist, efgartigimod, in its first indication, generalized myasthenia gravis (gMG).

Biologics License Application (BLA) on track to be filed with the U.S. Food and Drug Administration (FDA) by the end of 2020 with an expected U.S. commercial launch in 2021
Japanese Marketing Authorization Application (J-MAA) expected to be filed with the Pharmaceuticals and Medical Devices Agency (PMDA) in the first half of 2021 with an expected efgartigimod launch in gMG in Japan following the U.S. commercial launch
Commercial infrastructure readiness activities, including with global supply chain, are on track for launch timeline in the U.S. and Japan
In May, argenx reported positive topline data from the Phase 3 ADAPT trial showing efgartigimod was well-tolerated and able to drive responses that support plans to offer individualized dosing to gMG patients.

ADAPT met its primary endpoint showing 67.7% of acetylcholine receptor-antibody positive (AChR-Ab+) gMG patients were responders on the Myasthenia Gravis Activities of Daily Living (MG-ADL) score compared with 29.7% on placebo (p<0.0001)
63.1% of AChR-Ab+ gMG patients responded to efgartigimod compared with 14.1% on placebo on the Quantitative Myasthenia Gravis (QMG) score (p<0.0001)
40.0% of efgartigimod-treated AChR-Ab+ patients achieved minimal symptom expression defined as MG-ADL scores of 0 (symptom free) or 1, compared to 11.1% treated with placebo
In AChR-Ab+ patients who met the primary endpoint, the majority showed a sustained response, including 88.6% who achieved a response for at least six weeks, 56.8% for at least eight weeks and 34.1% for at least 12 weeks
Safety profile of efgartigimod was comparable to placebo
Detailed data set to be presented at upcoming medical meeting in 2020
argenx plans to meet with FDA in fourth quarter of 2020 to discuss bridging strategy for subcutaneous (SC) efgartigimod
Positive ADAPT data support continued progress of efgartigimod in additional severe autoimmune indications within key commercial franchises.

Primary immune thrombocytopenia (ITP) registrational program includes ongoing ADVANCE trial evaluating 10mg/kg IV efgartigimod in up to 156 patients
Enrollment delays in the program have been observed due to COVID-19
Discussions ongoing with FDA on how to bring forward SC components of program to meet COVID-19 enrollment challenges
Chronic inflammatory demyelinating polyneuropathy (CIDP) Phase 2 ADHERE trial ongoing evaluating SC efgartigimod
Due to COVID-19 enrollment delays, potential decision to expand trial up to 130 patients now expected in 2021
Pemphigus vulgaris (PV) registrational trial to start in second half of 2020 following proof-of-concept data from adaptive Phase 2 trial that showed fast onset of disease control and deep responses with potential for steroid sparing
Fifth indication to be announced by end of 2020
Cusatuzumab development strategy aligned with evolving treatment landscape and anticipated global adoption of venetoclax in acute myeloid leukemia (AML) clinical practice.

Development plan, in collaboration with Cilag GmbH International, an affiliate of the Janssen Pharmaceutical Companies of Johnson & Johnson, to now focus on cusatuzumab in combination with venetoclax, including in the Phase 1b ELEVATE combination trial of cusatuzumab with venetoclax and azacitidine in newly diagnosed, elderly patients with AML who are ineligible for intensive chemotherapy
Trial enrolling again after pause due to COVID-19
Maturing data from Phase 2 CULMINATE trial of cusatuzumab in combination with azacitidine in newly diagnosed, elderly patients with AML who are ineligible for intensive chemotherapy show that complete response rates are not likely to exceed those from the VIALE-A trial of venetoclax in combination with azacitidine presented at the European Hematology Association (EHA) (Free EHA Whitepaper) Annual Congress in June 2020
Based on enrollment to date, dose selected to be 20mg/kg
CULMINATE trial will continue to evaluate responses and durability for existing patients but will not enroll new patients
Topline data to be reported in early 2021
Registration strategy to be determined following evaluation of maturing data across cusatuzumab program and AML treatment landscape
Phase 1 trial of cusatuzumab in combination with azacitidine trial in Japan evaluating newly diagnosed, elderly AML patients who are ineligible for intensive chemotherapy remains ongoing
Phase 2 BEACON trial of cusatuzumab in combination with azacitidine versus azacitidine alone in higher-risk patients with myelodysplastic syndromes (MDS) who are ineligible for intensive chemotherapy remains paused for enrollment
Part 1 dose escalation of Phase 1 study of cusatuzumab in combination with azacitidine in newly diagnosed, elderly patients with AML who are ineligible for intensive chemotherapy, published in Nature Medicine
argenx continues to advance its early-stage pipeline of first-in-class antibodies against immunologic targets.

ARGX-117 targeting complement C2 to be evaluated in Phase 1 healthy volunteer trial starting in third quarter of 2020
Following analysis of Phase 1 data, argenx plans to launch Phase 2 proof-of-concept trials in severe autoimmune diseases, including multifocal motor neuropathy (MMN)
Single-center Phase 1 trial remains open for enrollment to evaluate ARGX-117 as a potential treatment for acute respiratory distress syndrome (ARDS), a frequent and serious complication associated with COVID-19
ARGX-118 targeting Galectin-10 is undergoing lead optimization work as a potential treatment for airway inflammation
ARGX-119 on track to be announced in 2020
Partnered antibody candidates that emerged from argenx’s Immunology Innovation Program continue to have the potential to bring non-dilutive capital in the form of milestone payments and future royalties

AbbVie’s ongoing Phase 1 trial of ABBV-151 (formerly ARGX-115) in solid tumors remains open for enrollment
LEO Pharma plans to reopen sites in late August for enrollment in ongoing Phase 1 trial of LP0145 (formerly ARGX-112) for the treatment of atopic dermatitis
Staten initiated dosing in first-in-human clinical trial of STT-5058 (formerly ARGX-116) targeting apoC3 for the potential treatment of dyslipidemia
DETAILS OF THE FINANCIAL RESULTS

On June 30, 2020, cash and cash equivalents and current financial assets totaled €1,932.8 million, compared to €1,335.8 million on December 31, 2019. The increase in cash and cash equivalents and current financial assets resulted primarily from the closing of a global offering, including a U.S. offering and a European private placement, which resulted in the receipt of €730.7 million net proceeds in June 2020.

Total operating income decreased by €20.2 million for the six months ended June 30, 2020 to €31.1 million, compared to €51.3 million for the six months ended June 30, 2019. This decrease is primarily related to the milestone payments following the first-in-human clinical trial with ABBV-151 under the AbbVie collaboration which was achieved in the first six months of 2019, partly offset by the revenue recognition of the transaction price related to the Janssen collaboration and the increase in other income mainly driven by higher payroll tax rebates for employing certain research and development personnel.

Research and development expenses in the first six months of 2020 amounted to €171.7 million, compared to €78.3 million for the first six months of 2019. The increase resulted primarily from higher external research and development expenses primarily related to the efgartigimod program in various indications, the cusatuzumab program and other clinical and preclinical programs. Furthermore, the personnel expenses increased due to the planned increase in headcount.

Selling, general and administrative expenses totaled €61.6 million in the first six months of 2020, compared to €27.5 million for the first six months of 2019. This increase primarily resulted from higher personnel expenses and consulting fees related to the preparation of a possible future commercialization of argenx’s lead product candidate, efgartigimod.

For the six months ended June 30, 2020, financial expenses, which primarily relate to interest received and changes in fair value of current financial assets, amounted to €2.2 million compared to a financial income of €7.2 million for the six months ended June 30, 2019. Financial expenses corresponded mainly to a decrease in net asset value on its current financial assets following the impact of the COVID-19 outbreak on the financial markets.

Exchange gains totaled €0.2 million for the six months ended June 30, 2020, compared to €2.5 million for the six months ended June 30, 2019 and were mainly attributable to unrealized exchange rate gains on cash, cash equivalents and current financial assets.

A net loss of €205.6 million and an operating loss of €201.4 million were realized for the six months ended June 30, 2020, compared to a net loss of €45.1 and operating loss of €54.5 million for the six months ended June 30, 2019.

EXPECTED 2020 FINANCIAL CALENDAR:

October 22, 2020: Q3 financial results & business update
CONFERENCE CALL DETAILS

The half year 2020 results and second quarter business update will be discussed during a conference call and webcast presentation today at 2:30 pm CET/8:30 am ET. To participate in the conference call, please select your phone number below and use the confirmation code 7470386. The webcast may be accessed on the Investors section of the argenx website at argenx.com/investors.

Synthetic Biologics to Report 2020 Second Quarter Operational Highlights and Financial Results on August 6, 2020

On July 29, 2020 Synthetic Biologics, Inc. (NYSE American: SYN), a diversified clinical-stage company leveraging the microbiome to develop therapeutics designed to prevent and treat gastrointestinal (GI) diseases in areas of high unmet need, reported that the Company intends to release its operational highlights and financial results for the quarter ended June 30, 2020 on Thursday, August 6, 2020, and to host a conference call the same day at 4:30 p.m. ET (Press release, Synthetic Biologics, JUL 29, 2020, View Source [SID1234562587]). The dial-in information for the call is as follows:

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Participants are asked to dial in 15 minutes before the start of the call to register. The call will also be webcast over the Internet at View SourceAn" target="_blank" title="View SourceAn" rel="nofollow">View Source archived replay of the call will be available for approximately ninety (90) days at the same URL, View Source beginning approximately one hour after the call’s conclusion.

Sangamo Therapeutics Announces Second Quarter 2020 Conference Call and Webcast

On July 29, 2020 Sangamo Therapeutics, Inc. (Nasdaq: SGMO), a genomic medicine company, reported that the Company has scheduled the release of its second quarter 2020 financial results after the market closes on Wednesday, August 5, 2020 (Press release, Sangamo Therapeutics, JUL 29, 2020, View Source [SID1234562586]). The press release will be followed by a conference call at 5:00 p.m. ET, which will be open to the public via telephone and webcast. During the conference call, the Company will review its financial results and provide a business update.

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The conference call dial-in numbers are (877) 377-7553 for domestic callers and (678) 894-3968 for international callers. The conference ID number for the call is 5667347. Participants may access the live webcast via a link on the Sangamo Therapeutics website in the Investors and Media section under Events and Presentations. A conference call replay will be available for one week following the conference call. The conference call replay numbers for domestic and international callers are (855) 859-2056 and (404) 537-3406, respectively. The conference ID number for the replay is 5667347.

Dr. Reddy’s Q1 FY21 Financial Results

On July 29, 2020 Dr. Reddy’s Laboratories Ltd. (BSE: 500124 | NSE: DRREDDY | NYSE: RDY) reported its consolidated financial results for the quarter ended June 30, 2020 (Press release, Dr Reddy’s, JUL 29, 2020, View Source [SID1234562550]). The information mentioned in this release is on the basis of consolidated financial statements under International Financial Reporting Standards (IFRS).

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COVID-19 Update
In the current challenging times due to the COVID-19 pandemic, we are undertaking reasonable precautions to ensure the health and safety of our employees, including adhering to the social distancing norms, sanitization of our premises, usage of masks, gloves and other protective wears.

Our operations have continued without much impact. We continued our engagement with doctors through digital channels, ensured regular supplies of our products to meet with the market demand and continued our R&D activities including few projects pertaining to COVID-19.

While the sales volume were impacted in some of our markets due to lower prescriptions generated and fall in patient footfalls in pharmacies / clinics due to Covid-19, the pricing environment was relatively stable, new products launches continued and depreciation of rupee against the US dollar and Euro supported the business.

Revenue Analysis
Global Generics (GG)
Revenues from GG segment at Rs. 35.1 billion:
 Year-on-year growth of 6% driven primarily by Europe and Emerging Markets. This was offset partially by decline in India. The overall growth was on account of volume traction in the base business, new product launches and aided by favorable forex rates, though offset partially due to price erosion.
 Sequential quarter decline of 4%, which is attributable to lower volumes across markets.

North America
Revenues from North America at Rs. 17.3 billion:
 Year-on-year growth of 6%, driven by contribution from new products launched and aided by a favorable forex rate, which was partially offset by price erosion.
 Sequential decline of 4%, on account of lower sales of certain key molecules.
 We launched six new products (Fenofibrate Tablets, Nitroglycerin Patch, Amphetamine Sulfate Tablets, Desmopressin Acetate Ampules, Colchicine Tablets and Abiraterone Acetate Tablets)
 We filed five new ANDAs during the quarter. As of 30th June 2020, cumulatively 101 generic filings are pending for approval with the USFDA (99 ANDAs and 2 NDAs under 505(b)(2) route). Of the 99 ANDAs, 54 are Para IVs and we believe 28 have ‘First to File’ status.

Emerging Markets
Revenues from Emerging Markets at Rs. 8.0 billion. Year-on-year growth of 9%. Sequential decline of 1%:
 Revenues from Russia at Rs. 3.3 billion. Year-on-year decline of 17% and sequential decline of 16%. Decline primarily on account of lower volumes due to lower prescriptions generated and fall in patient footfalls in pharmacies / clinics due to Covid-19.
 Revenues from other CIS countries and Romania market at Rs. 1.4 billion. Year-on-year growth of 15% driven by higher volumes and new product launches. Sequential decline of 22% on account of lower volumes.
 Revenues from Rest of World (RoW) territories at Rs. 3.3 billion. Year-on-year growth of 56% & sequential growth of 41%, primarily driven by new products and volume traction in base business. The growth was offset partially due to price erosion in some molecules

India
Revenues from India at Rs. 6.3 billion:
 Year-on-year decline of 10% and sequential decline of 8%. The decline was on account of lower sales volume due to lower prescriptions generated and fall in patient footfalls in pharmacies / clinics due to Covid-19.
 We launched four new brands during the period.
 We completed the acquisition of select business from Wockhardt including the manufacturing plant located in Baddi, Himachal Pradesh in the quarter.

Europe
Revenues from Europe at Rs. 3.6 billion:
 Year-on-year growth of 48%, on account of new product launches and volume traction across markets.
 Sequential growth of 3%, aided by contribution by new products launched and favorable forex, offset partially by lower volumes.

Pharmaceutical Services and Active Ingredients (PSAI)
Revenues from PSAI at Rs. 8.6 billion:
 Year-on-year growth of 88% and sequential growth of 19% on account of higher volumes of certain products, increase in new product sales and favorable forex.
 During the quarter we filed DMF for one product in the US. Proprietary Products (PP) Revenues from PP at Rs. 56 million:
 Year-on-year decline of 80% due to absence of the Neurology franchise products (the US and select territory rights of which were sold in the previous year).

Income Statement Highlights:
 Gross profit margin at 56.0%:
– Increased by ~430 bps over previous year and by ~450 bps sequentially, primarily on account of a favorable product mix and forex benefit.
– Gross profit margin for GG and PSAI business segments are at 61.4% and 33.4% respectively.

 SG&A expenses at Rs. 12.8 billion, increased by 6% on a year-on-year basis and by 5% sequentially. The increase was primarily attributable to higher freight cost due to shortage of carriers for shipping the goods from India to other countries due to COVID-19 related disruptions.
 R&D expenses at Rs. 4.0 billion. As % to revenues- Q1 FY21: 9.0% | Q4 FY 20: 9.5% | Q1 FY20: 9.4%. Our focus continues on building complex generics, bio-similars and differentiated products pipeline. We are also undertaking development of a few projects pertaining to COVID-19 related drugs.

 Other operating income at Rs. 118 million compared to Rs. 3.8 billion in Q1 FY20. Previous year included Rs. 3.5 billion received from Celgene pursuant to an agreement entered towards settlement of any claim the Company or its affiliates may have had for damages under section 8 of the Canadian Patented Medicines (Notice of Compliance) Regulations in regard to the Company’s ANDS for a generic version of REVLIMID brand capsules, (Lenalidomide) pending before Health Canada.

Net Finance income at Rs. 605 million compared to Rs. 393 million in Q1 FY20. The increase is primarily on account of higher foreign exchange gain as compared to the previous year.
 Profit before Tax at Rs. 8.8 billion, increased by 3% year-on-year and by 23% sequentially. Adjusted for the Rs. 3.5 billion received from Celgene last year, the year-on-year growth is at 74%.
 Profit after Tax at Rs. 5.8 billion. The effective tax rate is around 34% for the quarter. The higher tax rate was primarily due to discontinuation of weighted deduction on R&D and completion of tax holiday for one of our plants.
 Diluted earnings per share is at Rs. 34.86

Other Highlights:
 Capital expenditure is at Rs. 1.5 billion.
 Free cash-flow generated during the quarter stood at Rs. 9.3 billion (before acquisition related payout to Wockhardt of Rs. 15 billion).
 Net debt of the company is at Rs. 3.4 billion as on June 30, 2020. Consequently, net debt to equity ratio is 0.02.

Sanofi pulls out of late-phase Daiichi vaccine collaboration

On July 29, 2020 Sanofi reported that it has pulled out of a pediatric pentavalent vaccine collaboration with Daiichi Sankyo in Japan (Press release, FierceBiotech, JUL 29, 2020, https://www.fiercebiotech.com/biotech/sanofi-pulls-out-late-phase-daiichi-vaccine-collaboration [SID1234562549]). The action, which Sanofi disclosed (PDF) alongside other pipeline updates, follows a multiyear effort to get phase 3 data on the vaccine candidate.

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Japan has lagged other parts of the world in adopting pentavalent vaccines that prevent pertussis, diphtheria, tetanus, poliomyelitis and Hib, choosing instead to give tetravalent and single antigen shots concomitantly. Sanofi was working with Daiichi to change that, but disclosed in its second-quarter results that it has "decided not to pursue the collaboration."

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The action follows years in which the targeted filing date for the vaccine has slipped steadily. A phase 3 study got underway in Japan in 2014. By 2017, Sanofi was planning to file for approval in 2020. The target slipped to 2021 the following year. Earlier this year, Sanofi moved the vaccine into its "2023 and beyond" group of planned filings. Now, Sanofi has dropped the filing plan altogether.

Sanofi also used the pipeline update to confirm a change in its collaboration with Denali. As Denali disclosed last month, the partners have dropped their phase 1 RIPK1 inhibitor SAR 443060 in favor of a backup compound.

Denali said the decision reflected "emerging evidence that higher levels of target inhibition may be required for maximizing efficacy, and challenges to achieving higher doses imposed by molecule-specific toxicity findings." The now-dropped drug went through two phase 1b studies in Alzheimer’s disease and amyotrophic lateral sclerosis, plus chronic toxicity studies in cynomolgus monkeys.

Elsewhere, the combination of Sarclisa and Libtayo was the only phase 2 removal disclosed by Sanofi in the update. Sanofi decided not to pursue the combination in multiple myeloma after finding that adding PD-1 inhibitor Libtayo to anti-CD38 antibody Sarclisa yielded "insufficient additional efficacy" over the latter drug as a monotherapy.