Biotech Alert: Searches spiking for these stocks today

These names in the biotech sector are seeing a substantial increase in search activity today, as determined by InvestingChannel. They include: 

• NovaBay Pharmaceuticals (NBY), 2,956% surge in interest
• Corbus Pharmaceuticals (CRBP), 991% surge in interest
• Apellis Pharmaceuticals (APLS), 192% surge in interest
• Novo Nordidsk (NVO), 45% surge in interest

Pipeline and key clinical candidates for these companies:

NovaBay Pharmaceuticals develops and sells eyecare and skincare products. NovaBay’s leading product, Avenova Antimicrobial Lid & Lash Solution, is often prescribed by eyecare professionals for blepharitis and dry-eye disease and is also available directly to eyecare consumers through online distribution channels such as Amazon.

Corbus Pharmaceuticals is an oncology company “committed to connecting innovation to our purpose of improving lives by developing new medicines that target the nexus between the immune system and cancer.” Corbus’ current pipeline includes anti-integrin monoclonal antibodies that block activation of TGF-beta and small molecules that activate or inhibit the endocannabinoid system.

Apellis Pharmaceuticals says the company “ushered in the first new class of complement medicine in 15 years” with the approval of the first and only targeted C3 therapy. Apellis is advancing this science to “continually develop transformative medicines for people living with rare, retinal, and neurological diseases,” it stated.

Novo Nordisk is a global healthcare company headquartered just outside Copenhagen, Denmark. The company’s purpose is to drive change to defeat serious chronic diseases, built upon its heritage in diabetes.

Recent news on these stocks:

September 22

Citi says that while disappointing, the negative Committee for Medicinal Products for Human Use opinion on Syfovre was “well-telegraphed by management on multiple prior calls.” The firm believes Apellis’ stock overreacted to the downside and notes its model already did not reflect any value for European Union Syfovre. Citi sees a “very attractive entry point” for shares of Apellis Pharmaceuticals and kept a Buy rating on the name with a $63 price target.

September 20

NovaBay announced it has entered into a definitive asset purchase agreement with PRN Physician Recommended Nutriceuticals to sell the assets of its Avenova brand and business for $9.5M in cash. The transaction has been approved by the company’s board and is anticipated to close in Q4 of 2024, subject to the satisfaction of customary closing conditions, including approval from the stockholders of NovaBay. Following an evaluation of the transaction with assistance from independent financial and legal advisors, the company’s board of directors determined that the asset sale transaction pursuant to the agreement is in the best interests of the company and its stockholders. The asset sale will require approval from NovaBay stockholders holding at least a majority of the outstanding shares of NovaBay common stock.

Novo Nordisk announced headline results from a Phase 2a clinical trial with monlunabant, a small molecule oral cannabinoid receptor 1 inverse agonist. The trial investigated the efficacy and safety of a once-daily 10 mg, 20 mg and 50 mg dose of monlunabant compared to placebo on body weight after 16 weeks in 243 people with obesity and metabolic syndrome. From a baseline body weight of 110.1 kg, all doses of monlunabant achieved a statistically significant weight loss compared to placebo. After 16 weeks of treatment, people treated with a once-daily 10 mg dose of monlunabant achieved a weight loss of 7.1 kg compared to a reduction of 0.7 kg with placebo. Limited additional weight loss was seen at higher doses of monlunabant, the company added. In the trial, the most common adverse events were gastrointestinal, with the vast majority being mild to moderate and dose dependent, it said. Based on the results, Novo expects to initiate a larger Phase 2b trial in obesity to further investigate dosing and the safety profile of monlunabant over a longer duration in a global population. The Phase 2b trial is expected to be initiated in 2025. “The phase 2a results indicate the weight-lowering potential of monlunabant and that further work is needed to determine the optimal dosing to balance safety and efficacy,” said Martin Holst Lange, executive VP and head of Development at Novo Nordisk.

Shares of Skye Bioscience (SKYE) and Corbus Pharmaceuticals sunk late last week after Novo Nordisk reported Phase 2 weight loss data for monlunabant, which targets type 1 cannabinoid receptors. Skye and Corbus are developing drugs that use a similar approach to monlunabant.

Wedbush lowered the firm’s price target on Corbus Pharmaceuticals to $51 from $85 and keeps an Outperform rating on the shares after Novo Nordisk reported Phase 2a 16-week data for CB1 inverse agonist monlunabant in 243 people with obesity and metabolic syndrome. The firm, which notes that Corbus is also developing a CB1 inverse agonist, CRB-913, points out that the most common monlunabant adverse events were gastrointestinal. However, mild to moderate neuropsychiatric side effects, including anxiety, irritability, and sleep disturbances, were more common in the treatment arm. Neuropsychiatric events led to the marketing withdrawal of rimonabant, and although the firm still thinks there is “a path forward for CRB-913,” it is updating its model to significantly increase the discount rate for the CRB-913 program and acknowledges that “greater skepticism is warranted.”

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About “Biotech Alert”

The Fly will report on a selection of biotech stocks seeing a surge in interest from retail and financial professional investors, based on data from InvestingChannel.

This Fly exclusive recap reveals the biotech stocks that are seeing a spike in searches among the 20-plus million retail and financial professional investors through InvestingChannel’s online financial news media ecosystem.

This increased attention from the investors may be in response to, or advance of, outsized moves for stocks in the biotech sector, which tend to be volatile and prone to sharp swings in share price around binary events such as clinical study results and FDA approvals.