The Big Red Biotech Blog

RXi Buys Apthera and Phase III Cancer Drug

RXi concluded an acquisition of Apthera for 4.8 million shares of its stock values at approximately $7.2 M (Mar 30th).  In the process, RXi picks up Apthera's NeuVax immunotherapy treatment.  NeuVax is scheduled to enter phase III trials for HER2-positive breast cancer, and is also in trials as a treatment for prostate cancer.  NeuVax is also being tested in combination with Genetech's (Roche's )Herceptin to target breast cancer. 

The deal gives RXi a late stage candidate while its own lead RNAi drug RXi-109 for anti-scarring is at an early stage in the clinic.  The deal leaves Apthera's CEO Mark Ahn as the new CEO of the combined company and RXi will now gain access to Nasdaq. RXi's outgoing CEO Noah Beerman will remain as a consultant. See Fierce Biotech and Seeking Alpha.

Posted by Bruce Lehr April 1st 2011.

No Mas! - KV Capitulates on Makena Price

The FDAs announcment a couple days ago that it would not enforce exclusivity with compounders making cheaper, non-approved versions (the original versions) of KV's newly approved Makena appears to have been the final straw.  Already under fire from patients, lawmakers, physicians, third-party payers, foundations, patient advocates, pundits and the Baja Marimba Band and the Mormon Tabernacle Choir, KV decided enough was enough and rolled back its list price from $1500 to $690.  See St. Louis Biz and Pharmalot blog.

This is still quite a bit more than the compounder's $20-$30 per patient price but does represent a 55% decrease from the $1500 price point.  Said KV Chief Exec Greg Davis,

We understand the concerns that key stakeholders raised under our original pricing structure.  We also recognize the current budget challenges facing state Medicaid programs and other payers.  In conjunction with our substantial reduction in price, it is our sincere hope that all committed stakeholders will take appropriate action to provide timely access to this important FDA-approved medication.

In other words, "Please don't go to the compounders. No Mas!"

 

Posted by Bruce Lehr April 1st 2011.