NEW YORK, NY / ACCESSWIRE / January 10, 2018 / Shares of Immunomedics soared to a new high yesterday after the company announced on Monday that it has agreed to sell tiered, sales-based royalty rights on global net sales of sacituzumab govitecan to Royalty Pharma. Sacituzumab govitecan is an investigational antibody-drug conjugate. Shares of Axsome suffered big losses yesterday after announcing that the Independent Data Monitoring Committee has recommended the continuation of COAST-1 Trial and the discontinuation of CREATE-1 Trial.
RDI Initiates Coverage on:
Axsome Therapeutics, Inc.
Immunomedics, Inc. shares closed up 8.23% yesterday on nearly 4 million shares traded. The stock soared to a new high of $17.24 during intra-day trading as well, despite no big news. It was instead on Monday that the company and Royalty Pharma announced that Immunomedics has agreed to sell tiered, sales-based royalty rights on global net sales of sacituzumab govitecan to Royalty Pharma for $175 million. It was also revealed that Royalty Pharma has also purchased $75 million in common stock of Immunomedics, at $17.15 per share. This price is more than a 15% premium over the stock’s 15-day trailing average closing price. CEO of Immunomedics, Michael Pehl, remarked, "The investment by Royalty Pharma supports our stated strategy at Immunomedics of becoming a fully integrated biopharmaceutical company and a recognized leader in the field of antibody-drug conjugates."
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Axsome Therapeutics, Inc. shares closed down about 36% on Tuesday on a little over 4.1 million shares traded. The stock was one of the biggest decliners on the NASDAQ after the clinical-stage biopharmaceutical company announced that an independent data monitoring committee (IDMC) has conducted an interim analysis of the CREATE-1 trial of AXS-02 in complex regional pain syndrome (CRPS) as well as of the COAST-1 trial of AXS-02 in knee osteoarthritis (OA) associated with bone marrow lesions (BMLs). According to the company's press release, the IDMC has recommended that the COAST-1 trial be continued to full enrollment, and that the CREATE-1 trial be stopped for futility. Senior Vice President of Clinical Development and Medical Affairs for the company, Cedric O'Gorman, M.D. commented, "We are encouraged by the IDMC's recommendation for continuation of the COAST-1 trial, by the favorable overall clinical safety profile of AXS-02, and by the confirmation of pharmacologic activity of orally administered AXS-02 as demonstrated by its effects on serum CTx in the CREATE-1 trial." He continued, "Knee osteoarthritis associated with bone marrow lesions is a serious and potentially disabling condition with limited treatment options. The demonstrated pharmacologic activity of AXS-02 on bone resorption is relevant not only to knee osteoarthritis but to other potential indications for AXS-02."
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