June 2011

 

   

 

TopBioMarketing    Insight 

Newsletter 

Pharma, Biotech & Medical Device  

Greetings!

Welcome to BioMarketing Insight's monthly newsletter. Last month's newsletter summarized the trends in funding and concluded that in order to fill the funding gap between Angels and VCs, more collaborations, partnerships and licensing deals are needed. To attract partnerships from larger companies, research should be concentrated in the areas where larger companies are focusing their R&D particularly since Big Pharma is decreasing their R&D budget. This month's newsletter will be the first of three installments analyzing six (6) promising therapeutic growth areas for both pharma/biotech and medical devices and where they are today.

Please see News Link on the right for more industry information. 

 

Feel free to email me if you have any questions, comments, or suggestions.

 

Sincerely,

Regina Au

Principal, Strategic Marketing Consultant

BioMarketing Insight 

R&D Overview
The six major R&D pharma/biotech therapeutic areas are: 1) Cardiovascular, 2) NeuroScience, 3) Metabolism, 4) Oncology, 5) Immunology and inflammation, and 6) Respiratory. This newsletter will look at six specific disease areas: 1) Alzheimer's Disease, 2) Obesity, 3) Diabetes, 4) COPD/asthma, 5) Arthritis and 6) Pain management. In addition to these six major diseases, rare or orphan diseases have recently been a major focus for most pharma/biotech companies. For more information on rare diseases please see my March newsletter.

For medical devices, the R&D focus is in two major areas; 1) tools for diagnosing and monitoring and 2) tool for minimally invasive procedures for treatment or repair. The six major therapeutic areas are: (1) cardiology including cardiac rhythm, (2) spine, (3) orthopedic, (4) general surgery, (5) gastroenterology, and (6) pulmonology. Recently, there has been a new focus on neurology in the treatment of brain aneurysms.

This month's newsletter will cover Alzheimer's disease and obesity for pharma/biotech and market data and recently approved products in cardiology and spine for medical device.

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In This Issue
R&D Overview
Alzheimer's Disease
Obesity
Cardiology Products - Medical Device
Spine Products - Medical Device
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Alzheimer's Disease
Alzheimer's disease currently affects between 2.4 million to 4.5 million Americans and approximately 24 million people worldwide today. Because the risk of developing Alzheimer's disease increases with age and with more people living longer, the number of people with this disease is expected to increase significantly to a potential 40 million worldwide by 2020.

Most cases of early-onset Alzheimer's disease are caused by gene mutations that can be passed from parent to child. Researchers have found that this form of the disorder can result from mutations in one of three genes: APP, PSEN1, or PSEN2.  When one of these genes is altered, large amounts of a toxic protein fragment called amyloid beta peptide are produced in the brain causing a build up of amyloid plaques. A buildup of toxic amyloid beta peptide and amyloid plaques may lead to the death of nerve cells and the progressive signs and symptoms of Alzheimer's disease.

It's not clear what causes late-onset of Alzheimer's disease except it does not run in families, except in some family clusters. This disorder is most likely related to variations in one or more genes in combination with lifestyle and environmental factors. A gene called APOE has been studied extensively as a risk factor for the disease. In particular, a variant of this gene called the e4 allele seems to increase an individual's risk for developing late-onset Alzheimer's disease.

Even though the following candidate drugs, developed by companies to remove amyloid plaque, none proved to be clinically significance in reducing symptoms or stopping the progression of the disease.:

1. Semagacestat, gamma secretase inhibitor (Eli Lilly),
2. Tramiprosate, amyloid beta 42 aggregation inhibitor (NeuroChem Inc.),
3. Tarenflurbil, gamma secretase inhibitor (Myriad Genetics),
4. Latrepirdine, (Pfizer and Medivation),
5. Bapineuzumab, beta amyloid monoclonal antibody (Wyeth and Elan).

"None of these strategies tested--blocking amyloid, improving insulin sensitivity in the brain, or even doubling up on agents that improve synaptic signaling--was able to alter the steady rate of cognitive and functional decline in patients with mild to moderate Alzheimer's, also among the failures were the omega-3 fatty acid studies."

"We are again left to wonder whether clues from epidemiology are more related to delaying or protective factors rather than factors related to progression of established disease," said Dr. Samuel Gandy, Mount Sinai Professor of Alzheimer's Disease Research at Mount Sinai Medical Center in New York."

At the French American Innovation Day seminar on Alzheimer's on December 6th, 2010 in Boston, the experts agreed that by the time patients showed signs and symptoms of the disease, it's too late to reverse the disease which may be the reason, why trials have failed. Dr. Reisa Sperling, Director, Center for Alzheimer Research and Treatment at Brigham and Women's Hospital whose research is in early diagnosis and treatment of Alzheimer's said we need to prevent Alzheimer's. Alzheimer's can develop 10-15 years before symptoms appear.

There have been about 11 clinical drug trials for Alzheimer's disease that have failed. Because of these failures, a Coalition Against Major Diseases (CAMD) at Critical Path Institute (C-PATH) funded by the FDA and Science Foundation Arizona, was formed as a public/private partnerships in creating innovative tools to advance the development of new Alzheimer's disease therapies. CAMD is a global collaboration with over 200 scientists from 12 biopharmaceutical companies, academic institutions, three government regulatory agencies, six patient advocacy organizations, and other key stakeholders.

In June 2010, CAMD launched a first-ever database of combined clinical trials to be openly shared by pharmaceutical companies. The database contains information from approximately 4,000 Alzheimer's patients from eleven industry-sponsored clinical trials which includes Johnson & Johnson, GlaxoSmithKline PLC, AstraZeneca PLC, Sanofi-Aventis and Abbott Laboratories.

"Data from additional drug makers and the National Institutes of Health will be added in the future. The coalition aims to create similar pooled databases for Parkinson's disease and tuberculosis, said Marc Cantillon, executive director of the Coalition against Major Diseases (CAMD). "

Currently, the only completed Phase II clinical trial for Alzheimer's is Elan Pharmaceuticals and Transition Therapeutics with their drug ELND005 (AZD-103). However, "The Phase II study did not achieve significance on co-primary outcome measures (NTB and ADCS-ADL). The study identified a dose with acceptable safety and tolerability. This dose demonstrated a biological effect on amyloid-beta protein in the cerebrospinal fluid and effects on clinical endpoints in an exploratory analysis. Based on the preponderance of evidence, and input from the experts in this field, the companies intend to advance ELND005 (AZD-103) into Phase III studies."

Major pharmaceutical companies such as Novartis, Astra Zeneca, and Pfizer continue to develop molecules for Alzheimer's but they are early in the pipeline. With the new focus on prevention vs. treatment, I'm sure these companies are reevaluating their respective drug programs.

Closing Thoughts

The treatment for Alzheimer's disease is very complex requiring more basic research to better understand this complicated disease. The theory of reducing beta amyloid is fading since the semagacestat study demonstrated a reduction in plaque, did not reduce symptoms. Prevention is the new theory and even before there are symptoms. This more pro-active theory makes sense. A team from the Netherlands Institute for Neuroscience has discovered a set of brain cells which become active at an early stage in the disease when there are still no visible symptoms.

Prof Swaab: "The brain itself appears to compensate for the disease process; nearly 500 genes in the front part of the parahippocampal cortex then become extra active."

"These genes ensure that nerve cells are better able to communicate with each other, allowing people to continue to function well. As soon as these genes become less active, the memory impairments become apparent."

According to Prof Swaab, this discovery is an important step on the road to finding effective medication. "We see these temporarily active genes as a pointer to a medicine. Once the disease has progressed to a more advanced stage, we can see whether we can reactivate the brain cells using medicines."

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Obesity

Obesity, defined as a body mass index (BMI) of 30 or greater, is a major risk factor for cardiovascular disease, certain types of cancer, type 2 diabetes, sleep apnea and respiratory disease, osteoarthritis and stroke.

According to the CDC, in 2009, only Colorado and the District of Columbia had a prevalence of obesity less than 20%.  In contrast, thirty-three states had a prevalence equal to or greater than 25%; nine of these states (Alabama, Arkansas, Kentucky, Louisiana, Mississippi, Missouri, Oklahoma, Tennessee, and West Virginia) had a prevalence of obesity equal to or greater than 30%.

This puts a huge burden on the healthcare system since obesity leads to many major diseases. Diet and exercise and over the counter diet pills have not worked significantly over the long-term Surgical procedures such as Roux-en-y gastric bypass surgery have been performed but like any surgical procedure comes with risk. This gastric bypass surgery is expensive and many insurance companies will not pay for the procedure although this is slowly changing.

Four companies have tried to develop drugs for obesity but as of this date, they have not been approved by the FDA or have been withdrawn from the market:

1. The first obesity drug was approved in 2007 - Meridia (sibutramine) by Abbott. At the request of FDA, Abbott voluntarily withdrew the drug starting in November of 2009 based on a "results of the six-year SCOUT study, which involved roughly 10,000 patients and was requested by European regulatory authorities as a post-marketing commitment to evaluate cardiovascular safety in high-risk patients. The majority of these patients had underlying cardiovascular disease and was not eligible to receive sibutramine under the current labeling. The European Medicines Agency suspended marketing authorization for all obesity medicines containing sibutramine in January 2010.

2. When Arena Pharmaceuticals submitted their weight drug lorcaserin for approval, the FDA issued a Complete Response Letter addressing their concerns about "signs of tumors found during an animal study and voiced concerns that the weight-loss experienced by non-diabetics in its clinical trials was marginal. Regulators asked for new data from a one-year study of obese and diabetic patients and asked Arena to come up with one or more independent experts to take a second look at the tumor data to see if the agency's cancer worries can be addressed." This is a major set back for Arena and one analyst thinks it may take up to 3 years before all the data is sorted out.

3. Vivus also received a Complete Response Letter from the FDA for their drug Qnexa. The FDA requested "a detailed plan to handle the risks Qnexa may present to women who are pregnant or may become pregnant. The agency also want data proving that elevated heart rate associated with the drug doesn't lead to cardiovascular problems. Vivus will have to provide results from an already completed 52-week study of the drug, an extension study for a subset of 675 patients who completed the CONQUER study. FDA requested continued discussion of Vivus' already-submitted REMS plan. Finally, the agency asked for safety update of any new adverse. Like lorcaserin, Qnexa will be a Schedule IV drug due to the phentermine component."

4. The final company to submit an obesity drug was Orexigen with Contrave. However, in February of 2011, the FDA had rejected its application and demanded a pre-approval cardiovascular study before it rules on an approval. Regulators told Orexigen that the trials would have to be of "sufficient size and duration to demonstrate that the risk of major adverse cardiovascular events in overweight and obese subjects treated with naltrexone/bupropion does not adversely affect the drug's benefit-risk profile."

With 4 companies initially rejected for their weight loss drugs, Matthew Herper from Forbes said "The field of obesity drugs is effectively dead," He also added that the FDA's requirement for additional trials would take years and cost a fortune, and will discourage any other company from pursuing an obesity drug program. "The clear lesson is that weight-loss medicines simply do not have enough of a benefit to justify any risk--and that this makes getting them approved just about impossible."

Closing Thoughts

The FDA is taking a strong position regarding the safety of these obesity drugs and making it difficult for pharma companies due to their evaluation of risk versus the benefits from these drugs. Serious cardiovascular risk particularly in a short period of time is far more serious than weight loss that may help to reduce the development of cardiovascular disease such as hypertension or diabetes that takes years to develop naturally.

However, if the FDA is requiring clinical trials that require a substantial number of patients and duration to satisfy their benefit-risk profile and making it literally impossible for any company to undertake, they will discourage obesity drug programs and basic research in this area.

At the present time, obesity drug development is fraught with too much risk.

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Cardiology Products - Medical Device
Medical devices in cardiology procedures are primarily for minimally invasive surgery. These devices make procedures easier and faster, resulting in safer procedures, shorter patient recovery time and shorter hospital stay resulting in very cost effective healthcare.

According to Market and Research (M&R), in 2010, the U.S. market for interventional cardiology devices (i.e. drug-eluting stents, balloon-inflation devices, embolic protection devices) was valued at over $3.9 billion, a moderate increase from 2009. The company project that percutaneous coronary intervention (PCI) procedures are expected to grow modestly as the population ages and patients at high risk for cardiovascular disease increases. New stent technologies are expected to have a significant impact on this market by 2017.

In 2010, the European markets for interventional cardiology devices were valued at over €1.5 billion. The UK is the fastest growing market but Scandinavia is expected to be the next growth market due to low penetrations of drug- eluting stent. Countries such as Austria, France, and Switzerland are expected to slow due to pricing pressures.

M&R also reports that in 2010, the U.S. market for cardiac surgery devices (i.e. percurtaneous mitral valve repair, coronary artery bypass devices, surgical ablation) was valued at over $2 billion a 6.3% increase over 2009. The company predicts a number of new and innovative devices will be launched especially in the heart valve and cardiac assist segments thereby accelerating growth in the overall market. In 2010, the European market for cardiac surgery devices was valued at over €990 million.

The following 18 products have been approved in the last 7 months for cardiology alone. These approvals were previously listed in my newsletters in their appropriate months and references.

Closing Thoughts

The interventional cardiology market is growing modestly in the US due to high market penetration. Cost containment pressures in the US are also contributing to this modest growth. Some countries in the EU are already following right behind the US with pricing pressures.

The cardiac surgery device market will continue to grow due to low market penetration and continuous development of innovative products and in repairing structural cardiac defects through open or minimally invasive procedures.

What are needed now are more diagnostic products for very early detection of heart diseases.

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Spine Products - Medical Device
According to Millennium Research Group, the global spinal implant market, which includes the US, Europe, and Asia Pacific, was valued at over $5 billion in 2008 and will grow to more than $7.5 billion in 2013.  Five major companies: DePuy Spine, Medtronic Spinal and Biologics, Stryker Spine, Synthes Spine, and Zimmer Spine had nearly 78% of the global market in 2008. These top players dominate the non-infusion market segment, but choices are currently limited for the surgeons.

In addition to these five major players, there are at least 22 additional companies in the spine space and the list continues to grow. There is a lot of competition which will spur more innovation and choices for surgeon.

The following 9 products have been approved in the last 7 months for spine procedures alone. These approvals were previously listed in my newsletters in their appropriate months and references.

1) Medtronic Inc. for its CD Horizon vertebral bone screw system to treat scoliosis that develops during adolescence. It's the first clearance by the FDA under its new category for pediatric adolescent idiopathic scoliosis (AIS) patients who are treated with posterior pedicle screw instruments,

2) Zyga Technology for its SImmetry Sacroiliac Joint Fusion System, designed for minimally invasive surgery to eliminate lower back pain by stabilizing the sacrum - vertebrae at the base of the spine which connect the spine to the pelvis.

3) Optasia Medical for its SpineAnalyzer™ system in the U.S. The system is a tool for the assessment of vertebral deformities in patients at risk of osteoporosis and in diagnosing vertebral fractures.

4) Boston Scientific for Clik Anchor in its Precision Plus Spinal Cord Stimulator System in the U.S. It is the first rechargeable spinal cord stimulator device for chronic pain management.

5-7) Integra LifeSciences for three new spinal intervertebral body fusion devices (IBD): 1) Cervical Stand-alone IBD, 2) Vu cPOD Non-Strut IBD and 3) Steerable IBD.  Each system is designed to simplify surgical procedures and eliminate unnecessary steps.

8)Covidien for its updated spine sealant DuraSeal Exact. The product makes a watertight seal around the dura surrounding the spinal cord, preventing any cerebrospinal fluid leaks.

9) X-spine for their new AXLE™ Interspinous Fusion System The system is designed to provide spinal stability for lumbar fusion procedures, including the treatment of degenerative disk disease, spinal tumors, and trauma.

Closing Thoughts

The spinal market is enormous and will continue to grow as more companies enter the market developing innovative products to repair spinal injuries and defects through open and minimally invasive procedures. The diagnostic and assessment market will also grow as it provides physician with better tools to visualize the defect and outline a more precise pre-surgical course of action.

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