Novo Nordisk Obtains Licence For Sickle Cell Disease Program
Zacks Investment Research | Apr 06, 2018 05:35AM ET
Novo Nordisk (CO:NOVOb) (NYSE:NVO) inked a global licence deal with biotech company EpiDestiny for sickle cell disease (“SCD”) program EPI01.
Per the deal, EpiDestiny will receive more than $400 million in upfront, development and sales milestone payments and will also get royalties on net sales. EpiDestiny retains all rights to continue development of EPI01 in oncology. EpiDestiny and Novo Nordisk will jointly develop EPI01 for SCD and beta-thalassaemia.
Shares of Novo Nordisk have moved up 37.9% over a year compared with the industry ’s gain of 6.3%.
EPI01 is a novel, orally available, disease-modifying therapy to increase foetal haemoglobin (HbF) and interrupt SCD pathophysiology. EpiDestiny recently completed a phase I study with EPI01 in SCD patients demonstrating increased HbF expression and safety after eight weeks of administration in a small patient cohort.
The inclusion of EPI01 in Novo Nordisk’s portfolio will be a boost for the company as the candidate forms part of the company’s existing biopharmaceutical business. Thus the company can enter into a new therapeutic area and also utilize their core Research and Development and commercial capabilities to make a significant difference for patients living with a serious chronic disease.
EpiDestiny believes that teaming up with Novo Nordisk will enable the former to invest and explore the full potential of EPI01 and pursue its other pipeline compounds in oncology and other indications.
We note that Novo Nordisk has a strong presence in the Diabetes care market with a global value market share of 27%. Also, the company has a strong presence in the total insulin market, and modern and new-generation insulin market with a global value market share of 47% and 45%, respectively.
The company has one of the broadest diabetes portfolios in the industry. A solid performance of Tresiba, Victoza, Saxenda and NovoRapid in 2017 has kept the company on a growth trajectory.
Zacks Rank and Stocks to Consider
Novo Nordisk carries a Zacks Rank #3 (Hold).
A few better-ranked stocks from the same space worth looking at are Regeneron Pharmaceuticals (NASDAQ:REGN) , Enanta Pharma (NASDAQ:ENTA) and Ligand Pharmaceuticals (NASDAQ:LGND) . All of themsport a Zacks Rank #1 (Strong Buy). You can see .
Get The News You Want
Regeneron’s earnings per share estimates have moved up from $18.67 to $18.68 for 2018 in the last 30 days. The company pulled off a positive earnings surprise in three of the last four quarters, with an average beat of 9.15%.
Enanta Pharma delivered a positive earnings surprise in three of the last four quarters, with an average beat of 373.1%. The company’s shares have surged 186.9% over a year.
Ligand’s earnings per share estimates have moved up $3.78 to $4.20 from $4.75 to $5.32 for 2018 and 2019, respectively, over the last 60 days. The company delivered a positive earnings surprise in three of the trailing four quarters, with an average beat of 24.88%. The company’s shares have rallied 51% over a year.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geopolitics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
Zacks Investment Research
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.