Biotech in 2001
I
expect the year 2001 to be a biotech-friendly year to investors for a
variety of reasons. This year will bring
more companies to the land of profitability because of increasing demand for new
pharmaceutical treatments and rapidly advancing technology.
In addition to the
top-tier companies such as Amgen
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Pharmaceuticals
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revenues from existing or new drugs, pushing them towards being profitable.
Along with profitability, this year will see the FDA approve a record
number of new treatments for many different diseases.
Expect to see more than 20 new drug products approved, providing a steady
drumbeat of good news for the sector.
In addition to new
drugs and profitability, 2001 will be peppered with biotech merger and
acquisition activity. There will be
several biotech-to-biotech mergers this year, mainly involving the takeover of
emerging genomic, proteomic, and bioinformatic companies.
These are the technologies of future drug development and many of the
major pharmaceutical and larger biotech firms are in need of building their own
genomic or proteomic platforms in order to stay competitive.
The presence of cash in the bank will also exhibit positive influences in
the biotech sector.
After last year’s
stellar year, many biotechs are flush with cash from new alliances with the
pharmaceutical industry, IPOs, or secondary offerings.
This new cash will allow many of these companies the freedom to take
their own drugs through their own clinical trials, past the greedy hands of the
pharmaceutical industry. By having the
ability to test their own drugs and not give away the store, many of the
biotechs will be able to keep most of the future revenue generated from sales if
and when these new drugs come to market. This
fact is especially true for companies involved in developing genomically-based
drugs.What
Am I Looking At In the Year 2001?
ImClone
Systems
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treatments for the treatment of cancer. The
company has developed several new drugs in the monoclonal antibody group aimed
at targeting and killing different types of cancer.
Their lead drug, C225, is a monoclonal antibody that targets a specific
site or receptor (EGF) on cancer cells, stopping their growth.
C225 has shown promising activity against advanced colon and head and
neck cancer unresponsive to conventional chemotherapy in late-stage clinical
trials. ImClone Systems expects to file
for FDA approval of C225 to treat colorectal cancer not responsive to
conventional treatment in May. If the
drug gets approved, it will be the first of its kind that targets a specific
site on cancer cells and stops their growth. In
addition, ImClone is testing C225 against a variety of other cancers,
potentially opening up a multibillion-dollar market.
Inhale
Therapeutics
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2001. This company has spent the last
several years perfecting a way to deliver drugs into the body without the need
to be stuck with a needle. The company
has developed a drug delivery system that allows a patient to simply inhale a
drug, like many of the current inhaled drugs for asthma.
Inhale Therapeutics, along with Pfizer and Aventis, will be presenting to
the public a final analysis of the Phase III clinical trial data in early summer
on its inhaled form of insulin to treat diabetes.
Today, diabetes affects 16 million Americans.
In addition, insulin has to be delivered via a subcutaneous injection
that involves needle sticks and pain. By
inhaling insulin to treat diabetes, this can all be avoided.
Inhale and Pfizer expect to file with the FDA for approval later this
year and expect the drug to be on the market in early 2002.
The company is also expanding its inhaled-drug delivery system to other
drugs, potentially expanding its sources of future revenue.
In addition, I am
positive about the future of a company calledCor Therapeutics
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Cor Therapeutics has a lead drug, called Integrilin, that is used to
prevent clot formation during angioplasty.Â
Angioplasty is a common procedure performed by cardiologists to open up
blocked heart arteries. During
angioplasty, many times doctors will place a metal stent inside the just-opened
artery in order to maintain its patency over the long term.
Recent data has shown that Integrilin is able to reduce the risk of death
or heart attack after angioplasty and stent implantation by 35%.Â
Angioplasty and stent placement for blocked heart arteries is big
business in medicine, and the market is growing for Integrilin’s use.Â
More and more cardiologists are using Integrilin and Cor’s revenue
projections for 2001 are reflecting its marketshare inroads.
The company’s last quarter was profitable and it expects more of the
same this year as its growth continues.
In regards to the
genomic sector, I like Myriad Genetics
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business platform covering gene discovery, protein discovery, and diagnostic
tools for analyzing the genetic risk for many cancers.Â
The company has several new drugs to treat a variety of cancers in
clinical trials, a sound base of alliances generating revenue, and several
diagnostic products on the market. This
company is in a great position to take advantage of the discovery of new
cancer-related proteins toward the development of novel treatments for cancer.                              Â
