3 Biotechs That Have Surged 150%+ During Trump's First 100 Days
May 2, 2017
By Alex Keown, BioSpace.com Breaking News Staff
Despite any objective signs of success in any other area of the Trump administration, the first 100 days have marked a strong stock market. The S&P 500 gained more than 5 percent since President Trump’s inauguration, which according to CNBC, is the third-best performance by the index by any president’s first 100 days since World War II.
Many investors question whether the next 100 days will be so promising, particularly if the hard data figures like jobs, retail sales and first-quarter GDP continue to come in below forecasts and if the president has no more success with his tax reform than he has had with any of his other policies. However, Todd Campbell, writing for The Motley Fool, notes that biotech stocks have outperformed the S&P 500 in this same period. He takes a look at the three top-performing biotech stocks, which have more than doubled since Jan. 20.
1. Esperion Therapeutics
Based in Ann Arbor, Mich., Esperion Therapeutics is focused on developing cholesterol medications. The company’s lead candidate, bempedoic acid, is an oral formulation that can be taken along with statins. It has a different mechanism of action than statins and the new PCSK9 inhibitors. It is currently in Phase III trials with data expected sometime next year.
Campbell notes that investors have been excited about the company because it has a fully enrolled Phase III trial, and the U.S. Food and Drug Administration (FDA) has said the clinical trial can support a possible approval of the compound. There were concerns the agency would require a separate cardiovascular outcomes trial before approval.
To date, shares are up 223 percent. Esperion is currently trading for $37.08.
2. Aurinia Pharmaceuticals
Based in Victoria, British Columbia, Aurinia Pharmaceuticals announced on March 1 top-line results from its Phase IIb AURA-LV trial in lupus nephritis (LN). At 48 weeks, the trial met endpoints for complete and partial remission.
Of the half-a-million patients with systemic lupus erythematosus (SLE) in the U.S., up to 60 percent have lupus nephritis (LN), an inflammation of the kidneys. Patients generally receive CellCept as an off-label treatment. Campbell writes, “CellCept’s lackluster efficacy suggests that approvals could turn voclosporin into a big commercial success, and that’s got some industry watchers thinking this drug could eventually rack up sales of $1 billion annually. While that’s certainly possible, investors might want to temper a little of their enthusiasm. After all, there’s no guarantee that Aurinia Pharmaceuticals’ Phase III trial will pan out.”
And on April 17, the company signed a licensing deal with Merck Animal Health, giving Merck worldwide rights to develop and commercialize its nanomicellar voclosporin ophthalmic solution (VOS) for the treatment of dry eye syndrome in dogs.
Since Jan. 20, shares have risen 177 percent. Aurinia is currently trading for $7.38.
3. TG Therapeutics
TG Therapeutics focuses on developing treatments for B-cell cancers and autoimmune diseases. On April 28, it announced preliminary results from an ongoing Phase II trial of TG-1101 (ublituximab) for relapsing forms of multiple sclerosis (RMS).
“We are highly encouraged by the data presented today demonstrating that TG-1101 is a potent and effective B-cell depleting agent,” said Michael Weiss, TG’s executive chairman and chief executive officer, in a statement. “With the recent approval of ocrelizumab, B-cell depletion therapy is now recognized as a highly efficacious treatment option for patients with MS. We look forward to following these patients and reporting on established MS efficacy endpoints later this year, which require longer-term follow-up. We believe TG-1101 represents an exciting option in the treatment of MS and believe this Phase II trial sets the stage for our Phase III program that we expect to commence in the coming months.”
The same drug is also being evaluated in a Phase III trial with AbbVie's Imbruvica in patients with chronic lymphocytic leukemia (CLL) and high-risk gene mutations. The company expects to release more data in June at the American Society of Clinical Oncology conference. Early data has showed that 80 percent of patients with CLL responded to treatment compared to only 47 percent of patients showing an overall response to Imbruvica alone.
Company shares are up 163 percent since the inauguration. TG is currently trading for $10.65.