Biotech Alert: Searches spiking for these stocks today

These names in the biotech sector are seeing a substantial increase in search activity today, as determined by InvestingChannel. They include: 

• Verrica Pharmaceuticals (VRCA), 658% surge in interest
• Macrogenics (MGNX), 570% surge in interest
• Jazz Pharmaceuticals (JAZZ), 356% surge in interest
• Apellis Pharmaceuticals (APLS), 119% surge in interest
• Emergent Biosolutions (EBS), 113% surge in interest
• Amicus Therapeutics (FOLD), 91% surge in interest
• Acadia Pharmaceuticals (ACAD), 89% surge in interest
• Elevai Labs (ELAB), 83% surge in interest

Pipeline and key clinical candidates for these companies:

Verrica is a dermatology therapeutics company developing medications for skin diseases requiring medical interventions. On July 21, 2023, Verrica’s lead product, Ycanth, became the first treatment approved by the FDA to treat pediatric and adult patients with molluscum contagiosum, a highly contagious viral skin infection affecting approximately 6 million people in the United States, primarily children. VP-102 is also in development to treat common warts and external genital warts, two of the largest unmet needs in medical dermatology. Verrica is developing VP-103, its second cantharidin-based product candidate, for the treatment of plantar warts. Verrica has also entered a worldwide license agreement with Lytix Biopharma AS to develop and commercialize VP-315 for dermatologic oncology conditions.

MacroGenics is a biopharmaceutical company focused on developing, manufacturing and commercializing innovative monoclonal antibody-based therapeutics for the treatment of cancer. The company generates its pipeline of product candidates primarily from its proprietary suite of next-generation antibody-based technology platforms, which have applicability across broad therapeutic domains. “The combination of MacroGenics’ technology platforms and protein engineering expertise has allowed the company to generate promising product candidates and enter into several strategic collaborations with global pharmaceutical and biotechnology companies,” MacroGenics states.

Jazz Pharmaceuticals is a biopharmaceutical company who says its purpose is to “innovate to transform the lives of patients and their families.” The company has a diverse portfolio of marketed medicines and novel product candidates, from early- to late-stage development, in neuroscience and oncology. Within these therapeutic areas, Jazz says it is “identifying new options for patients by actively exploring small molecules and biologics, and through innovative delivery technologies and cannabinoid science.

Apellis Pharmaceuticals says the company “ushered in the first new class of complement medicine in 15 years” with the approval of the first and only targeted C3 therapy. Apellis is advancing this science to “continually develop transformative medicines for people living with rare, retinal, and neurological diseases,” it stated.

Emergent BioSolutions provides solutions for complex and urgent public health threats through a portfolio of vaccines and therapeutics that the company develops and manufactures for governments and consumers. Emergent also offers a range of integrated contract development and manufacturing services for pharmaceutical and biotechnology customers.

Amicus Therapeutics is a global, patient-dedicated biotechnology company focused on discovering, developing and delivering novel high-quality medicines for people living with rare diseases. With extraordinary patient focus, Amicus Therapeutics is committed to advancing and expanding a pipeline of cutting-edge, first- or best-in-class medicines for rare diseases.

Acadia Pharmaceuticals says it is advancing “breakthroughs in neuroscience to elevate life.” The company developed and commercialized what it identifies as “the first and only approved therapies” for hallucinations and delusions associated with Parkinson’s disease psychosis and for the treatment of Rett syndrome. Acadia’s clinical-stage development efforts are focused on treating the negative symptoms of schizophrenia, Alzheimer’s disease psychosis and neuropsychiatric symptoms in central nervous system disorders.

Elevai Labs specializes in medical aesthetics and biopharmaceutical drug development, focusing on innovations for skin aesthetics and treatments tied to obesity and metabolic health. Driven by a commitment to scientific research, Elevai aims to transform personal health and beauty, the company states.

Recent news on these stocks:

November 7

JMP Securities analyst Silvan Tuerkcan downgraded MacroGenics to Market Perform from Outperform without a price target. The company “is in a holding pattern” with respect to its pipeline, has paused all vobra duo development, including the lorigerlimab combo, and sold Margenza, the analyst told investors in a research note. The firm cites the uncertain future of MacroGenics’ B7-H3 franchise and lack of data and clarity on lorigerlimab and the DART programs for the downgrade. It views the shares as fairly valued currently.

Scotiabank lowered the firm’s price target on Apellis to $30 from $35 and kept a Sector Perform rating on the shares. The company missed on both the topline and bottom line, the analyst tells investors. Additionally, Syfovre and Empaveli came short of expectations, with Syfovre’s launch facing headwinds due to anticipated unfavorable gross-to-net adjustments, the firm adds. While the firm sees a path for continued revenue growth as Syfovre gains preferred status from payers, this growth will likely be more muted than what has been seen previously.

Piper Sandler lowered the firm’s price target on Apellis to $32 from $40 and kept a Neutral rating on the shares. The firm notes Apellis reported Q3 earnings where Syfovre sales came in below expectations, with the miss driven by higher GTN. Management guided towards flat to modest Syfovre sales for Q4 and a GTN in the low-to-mid 20% range going forward.

November 6

Jazz Pharmaceuticals reported Q3 adjusted EPS of $6.61 against a consensus of $5.50, and reported Q3 revenue of $1.054B against a consensus of $1.04B. Additionally, Jazz Pharmaceuticals raised its FY24 adjusted EPS view to $19.50-$20.60 from $19.20-$20.30. “Jazz once again delivered record revenues of more than $1.05 billion and a 14% year-over-year increase in revenue from our key growth drivers combined. We continue to see robust patient demand for Xywav with approximately 400 net patient additions in the third quarter, supported by physician and patient appreciation of a low-sodium treatment option. Strong sleep1 performance coupled with continued Epidiolex performance gives us confidence in maintaining our total revenue guidance of $4.0 to $4.1 billion for 2024,” said Bruce Cozadd, chairman and chief executive officer, Jazz Pharmaceuticals. “We’re preparing for the anticipated launch of zanidatamab in the fourth quarter in 2L BTC, where there remains a high unmet medical need. We expect to provide the first chemotherapy-free dual HER2-targeted bispecific antibody indicated for BTC as well as an opportunity for HCPs to gain important experience ahead of future indications. In addition, results from the Phase 3 IMforte trial were highly encouraging, and we plan to submit an sNDA for Zepzelca in the first half of 2025 to support expansion into the 1L maintenance setting in ES-SCLC.”

Emergent BioSolutions reported Q3 adjusted EPS of $1.37 vs. ($1.09) last year, and reported Q3 revenue of $293.8M vs. $270.5M last year. “Through disciplined execution and steady, measurable progress, Emergent’s financial position is the strongest it has been since 2021 as evidenced by our favorable third-quarter results,” said CEO Joe Papa. “We have successfully improved efficiencies and refocused our operations related to customer demand, generated value in our core medical countermeasures and NARCAN Nasal Spray businesses and refinanced our debt leading to increased revenue and cash flow. Based on the success of our efforts since the beginning of this year, we are officially entering the turnaround phase of our multi-year transformation plan, and we will be focused on driving profitable growth, continued operational improvements and the generation of sustainable value for shareholders. We believe ongoing public health crises like the opioid overdose epidemic and mpox outbreak underscore the need for Emergent’s capabilities and expertise. It is not if, but when, the next public health threat emerges, and we believe we are uniquely qualified to help respond to protect, enhance and save lives.”

Amicus reported Q3 EPS of 10c against a consensus of 0c, and reported Q3 revenue of $141.5M against a consensus of $135.33M. Additionally, Amicus raised its FY24 revenue growth view to 30% to 32% from 26% to 31%. “The third quarter of the year was marked by the excellent commercial performance of our two approved therapies and continued financial discipline,” said Bradley Campbell, President and Chief Executive Officer of Amicus Therapeutics, Inc. “Strong patient demand for Galafold drove double digit revenue growth, while the commercial launch of Pombiliti and Opfolda continues to build momentum. We also announced a settlement of the Galafold (migalastat) patent litigation with Teva, which is a major step forward in ensuring Amicus can continue to support the Fabry community with Galafold for many years to come. Importantly, throughout the first nine months of the year, we’ve exceeded expectations, which resulted in the achievement of non-GAAP profitability for the full year 2024 as we closed the third quarter. Amicus continues to be well positioned to drive sustainable shareholder value and further our mission of delivering great medicines for people living with rare diseases.”

Acadia Pharmaceuticals reported Q3 EPS 20c against a consensus of 14c, and reported Q3 revenue of $250.4M against a consensus of $248.8M. Additionally, Acadia Pharmaceuticals said it sees FY24 revenue $940M-$960M against a consensus of $952.5M. “The success of Acadia’s two growing commercial franchises is clearly reflected in our third quarter 2024 results, where we delivered $250.4M in total revenues, putting us on track to reach an impressive milestone of more than $1B in annualized sales in 2025,” said CEO Catherine Owen Adams. “In my new role as CEO, I’m inspired and excited by the possibilities that lie ahead for Acadia, both with our current portfolio and the exciting innovations in our pipeline. The opportunity to deliver additional groundbreaking therapies to patients who need them is truly compelling. Furthermore, I see significant potential to enhance shareholder value as we continue to execute our commercial priorities and advance our pipeline assets.”

November 5

RBC Capital analyst Gregory Renza downgraded Verrica Pharmaceuticals to Sector Perform from Outperform with a price target of $2, down from $11. The firm said the company’s “challenging” Q3 of negative net revenues is compounded by a quick CEO transition and strategic review to save Ycanth, manage costs, and restore the balance sheet. RBC sees “an uncertain path” for Verrica and cut its Ycanth forecasts.

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About “Biotech Alert”

The Fly will report on a selection of biotech stocks seeing a surge in interest from retail and financial professional investors, based on data from InvestingChannel.

This Fly exclusive recap reveals the biotech stocks that are seeing a spike in searches among the 20-plus million retail and financial professional investors through InvestingChannel’s online financial news media ecosystem.

This increased attention from the investors may be in response to, or advance of, outsized moves for stocks in the biotech sector, which tend to be volatile and prone to sharp swings in share price around binary events such as clinical study results and FDA approvals.