Take a hit: MorphoSys stocks and Roche stocks plunge: Roche and MorphoSys miss targets in key Alzheimer’s research | news

Alzheimer’s disease is still considered a risky gamble in research. The pharmaceutical company Roche also received this on Monday. The Alzheimer’s program with the candidate gantenerumab has not met its goals, the company announced. Roche is a licensing partner of the German biotech company MorphoSys.

Roche reported that “gantenerumab” treatment did not slow disease in affected patients. The rate of removal of beta-amyloid, the deposits in the brain typical of Alzheimer’s disease, was also lower than expected.

MorphoSys CEO Jean-Paul Kress was “disappointed” with the results. The global collaboration agreement with Roche, which has existed since 2000, provides that the Swiss company will be fully responsible for the clinical development and eventual marketing of “gantenerumab”. According to MorphoSys, it is entitled to tiered royalties of between 5.5 and 7.0 percent of net sales, as well as potential performance-based milestone payments. However, 60 percent of the royalties would go to Royalty Pharma, which last year made billions available to MorphoSys after a financial agreement so that the biotech company can grow into a biopharmaceutical company.

Roche said it will continue to develop and provide tests for early and accurate diagnosis of Alzheimer’s disease and has a pipeline of investigational drugs for various targets, types and stages of the disease.

Roche said it will continue to develop and provide tests for early and accurate diagnosis of Alzheimer’s disease and has a pipeline of investigational drugs for various targets, types and stages of the disease.

Even though analysts had repeatedly emphasized that they considered the success rate of this study very low, lately there has been some hope in the market. The reason for this was the competitors Biogen/Eisai, which had recently achieved positive results and thus a breakthrough in a study with a similar approach.

The pharmaceutical industry is under a lot of pressure when it comes to Alzheimer’s disease. According to calculations by the Alzheimer’s Disease International organization, 139 million people worldwide could develop Alzheimer’s disease by 2050. About 55 million people are already affected by this devastating disease. In addition, global health costs could double to about $2 trillion by 2030.

Even though analysts had repeatedly emphasized that they considered the success rate of this study very low, lately there has been some hope in the market. The reason for this was the competitors Biogen/Eisai, which had recently achieved positive results and thus a breakthrough in a study with a similar approach.

But for Bernstein Research analyst Wimal Kapadi, the gantenerumab data is bad enough to know that it means the end of the drug candidate. The detailed data from the end of November is no longer particularly important to him.

The pharmaceutical industry is under a lot of pressure when it comes to Alzheimer’s disease. According to calculations by the Alzheimer’s Disease International organization, 139 million people worldwide could develop Alzheimer’s disease by 2050. About 55 million people are already affected by this devastating disease. In addition, global health costs could double to about $2 trillion by 2030.

Investors dump Morphosys stock after disappointment over gantenerumab

A bitter disappointment in an Alzheimer’s drug caused MorphoSys shares to fall on Monday. Via XETRA, it goes down temporarily by 32.37 percent to 14.14 euros. Meanwhile, the Roche paper falls 3.76 percent on the SIX to 313.35 francs.

The Swiss pharmaceutical company Roche has failed to meet its goals in its Alzheimer’s program with the antibody gantenerumab. MorphoSys is Roche’s licensing partner for this Alzheimer’s candidate. A dealer said MorphoSys’ last hopes were gone.

Morgan Stanley analysts justified the high price losses in the market by now calculating the MorphoSys license income from the Gantenerumab program from the valuation models. However, Roche’s nearly four percent price cuts were still limited compared to MorphoSys’ slump. Despite the disappointment, Roche has something else to offer in the market, according to the tenor.

JPMorgan analyst James Gordon was disillusioned after the positive review of Biogen’s latest data on his Alzheimer’s drug lecanemab, as positive conclusions had been drawn from the Biogen data. The American company Biogen and its Japanese partner Eisai have recently reached an important milestone in the treatment of the degenerative disease with their research into the new drug against Alzheimer’s disease.

Shares of Biogen rose 3 percent in pre-market trading in the US on Monday. Eli Lilly, also involved in the Alzheimer’s drug market with the drug donanemab, won one percent for the market.

Shares of Eisai’s development partner BioArctic also rose by more than eight percent on the stock exchange in Stockholm. A competitor of the Swedes for the drug lecanemab is now out of the running, analyst Zoe Karamanoli of the Canadian bank RBC wrote in a first reaction to the weak research results on gantenerumab. According to the expert, lecanemab slowed the decline of the cognitive abilities of Alzheimer’s patients in his study much more than placebos. However, the US health authority FDA will probably look more closely at lecanemab because the active ingredient is the only one that helps against Alzheimer’s plaques (deposits – also amyloid plaques).

JPMorgan expert Gordon pointed out that market expectations had increased before the release of the gantenerumab data. This may also have been because MorphoSys CEO Jean-Paul Kress only expressed his confidence in the chances of the drug at the end of October. According to Gordon, there are hardly any other price drivers at MorphoSys in the short term and that is one of the reasons why the disappointment is now great. If gantenerumab from its valuation model were priced at EUR 11.50 per share, MorphoSys’ calculated NPV would drop by 23 percent.

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