Covered Companies

Echo (ECTE) Note 08-01-12

• Final Critical Care Feasibility Study Data Strong with MARD of 9.0%
Experts See Demand for CGM in Hospitals – Echo’s Transdermal CGM Favored
Ferndale Pharma Expands License for Prelude® to Additional Countries

Download Full 8-Page Note with Important Disclosures: Morning Note 08-01-12 ECTE

Echo Therapeutics announced very strong results for their Symphony® tCGM (transdermal continuous glucose monitoring) system from the Feasibility 3B study in Critical Care patients (their lead indication) conducted at Thomas Jefferson University. The results of all the feasibility studies are highly supportive for the initiation of late-stage clinical trials for European registration.

Investors should note three key takeaways from the Feasibility 3B (Thomas Jefferson) results:

1.) The Feasibility 3B data indicates that the new Symphony® tCGM System can successfully monitor Critical Care patients, which is their lead indication. The low MARD of 9.0% was the best seen thus far during feasibility testing. The CG-EGA was 98.9% clinically accurate with 0.3% benign errors for a combined A+B of 99.2%.

2.) The Feasibility 3B data agreed with the data seen in the previous Feasibility studies in both healthy and diabetic patients using Prelude® microabrasion. The Symphony tCGM results appear to be accurate and consistent. The data also indicates that Echo’s non-invasive transdermal biosensor and skin microabrasion technology is equivalent to the competition’s invasive sensor wire systems.

3.) The Symphony® tCGM System appears safe as there were no adverse events reported.

Study

MARD

CG-EGA
A

CG-EGA
A+B

SkinPrep

Patients

# of
Glucose
Readings

Feasibility 3B
(Thomas Jefferson) 

9.0% 

 98.9%

99.2% 

Prelude®
Microabrasion 

15 Critical Care
(Cardiac Surgery) 

1,200 

Feasibility 3A (Tufts)

12.3%

99.6%

99.6%

Prelude®
Microabrasion

15 Critical Care
(Cardiac Surgery)

540

Feasibility 2

12.6%

94.4%

96.9%

Prelude®
Microabrasion

20 Diabetic
(Type I&II)

2,600

Feasibility 1

10.5%

98.3%

99.5%

Prelude®
Microabrasion

12 Healthy

1,600

Prototype Pilot 3

12.9%

n/r

97%

Prelude®
Microabrasion

Diabetic

900

Prototype Pilot 2

11.6%

86.4%

100%

Ultrasound

8 Critical Care

147

Prototype Pilot 1

12.5%

89.6%

98.7%

Ultrasound

10 Diabetic

220

Source: Echo Therapeutics

 

Competition / Product

MARD

CG-EGA
A+B

SkinPrep

Echo Symphony® tCGM

9.0%-12.6%

96.9%-99.6%

Prelude®
Microabrasion

Abbott Freestyle Navigator

9.3%-12.3%

98.0%

None

DexCom SEVEN PLUS

13.0% -15.9%

97.0%

None

Medtronic Guardian RT

15.6%-19.7%

98.9%

None

Source: Echo Therapeutics and LifeTech Capital

MARD: Mean Absolute Relative Difference – Error calculated as the average relative difference between Symphony and the reference measurements

CG-EGA A: Continuous Glucose-Error Grid Analysis A – the clinically accurate A zone of the Clarke error grid

CG-EGA A+B: includes the clinically relevant B zone benign errors of the Clarke error grid

FEASIBILITY 3B (Thomas Jefferson)
Study Design: The study was performed at Thomas Jefferson University Hospital and enrolled 15 adult patients. The skin of each patient was prepared using Prelude and a Symphony tCGM biosensor was applied to the skin site after transfer to critical care. Reference blood samples were taken from arterial line catheters at 30-minute intervals and measured on a YSI 2300 STAT Plus Glucose Analyzer. The data collected by Symphony was blinded to study subjects and Jefferson clinical staff. At the conclusion of the study period, the test sites were inspected for redness or other undesirable effects.

Study Results: Using over 1,200 Symphony tCGM glucose readings from 15 study subjects paired with reference blood glucose measurements, CG-EGA showed that 98.9% of the readings were clinically accurate and 0.3% were benign errors with a combined A+B of 99.2%. The MARD for the study was 9.0%. There were no adverse events reported from the Prelude skin preparation or the Symphony tCGM biosensor.

FEASIBILITY 3A (Tufts)
Study Design: The study was performed at Tufts Medical Center and enrolled 15 adult patients scheduled for elective cardiac surgery. The skin of each patient was prepared using Prelude and a Symphony tCGM biosensor was applied to the skin site prior to surgery. Reference blood samples were taken from arterial line catheters at 30-minute intervals and measured on a YSI 2300 STAT Plus Glucose Analyzer. The data collected by Symphony was blinded to study subjects and Tufts clinical staff. At the conclusion of the study period, the test skin sites were inspected for redness or other undesirable effects.

Study Results: Using over 540 Symphony tCGM glucose readings from 15 study subjects paired with reference blood glucose measurements, CG-EGA showed that 99.6% of the readings were clinically accurate and 0% were benign errors with a combined A+B of 99.6%. The MARD for the study was 12.3%. There were no adverse events reported from the Prelude skin preparation or the Symphony tCGM biosensor.

FEASIBILITY 2
Study Design: 20 adult subjects with Type 1 or Type 2 diabetes were evaluated. The skin of each subject was prepared using Prelude and a Symphony tCGM biosensor was applied to the skin site. Venous reference blood samples were taken from intravenous lines at 15-minute intervals for 24 hours and measured on a YSI 2300 STAT Plus Glucose Analyzer. The study data was blinded to study subjects and study personnel. At the conclusion of the 24-hour study period, the test skin sites were inspected for redness or other undesirable effects.

Study Results: Using over 2,600 Symphony tCGM glucose readings from the 20 study subjects paired with reference blood glucose measurements, CG-EGA showed that 94.4% of the readings were clinically accurate and 2.5% were benign errors with a combined A+B of 96.9%. The MARD for the study was 12.6%. Values for blood glucose measurements ranged from 38 to 399 mg/dL. There were no adverse events reported from the Prelude skin permeation or the Symphony tCGM biosensor.

FEASIBILITY 1
Study Design: 12 adult subjects without a history of diabetes were evaluated. The skin of each subject was prepared using Prelude and a Symphony tCGM biosensor was applied to the skin site. Venous reference blood samples were taken from intravenous lines at 15-minute intervals for 24 hours and measured on a YSI 2300 STAT Plus Glucose Analyzer and a commercially available, professional-use glucometer. The study data was blinded to study subjects and study personnel. At the conclusion of the 24-hour study period, the test skin sites were inspected for redness or other undesirable effects.

Study Results: Using over 1,600 Symphony tCGM glucose readings from the 12 study subjects paired with reference blood glucose measurements, CG-EGA showed that 98.3% of the readings were clinically accurate and 1.2% were benign errors with a combined A+B of 99.5%. The MARD for the study was 10.5%. Values for blood glucose measurements ranged from 64 to 212 mg/dL. There were no adverse events reported from the Prelude skin permeation or the Symphony tCGM biosensor.

Download Full 8-Page Note with Important Disclosures: Morning Note 08-01-12 ECTE

Navidea (NAVB) Note 08-01-12

• Navidea Adds CFT for Parkinson’s Disease to Molecular Imaging Portfolio
• Lymphoseek® FDA PDUFA on September 10th
• Navidea Enters Into $50M Credit Facility to Fund Development
• Lymphoseek® NEO3-06 Head & Neck Partial Data Show Zero False Negatives
• AZD4694 Alzheimer’s Imaging Agent on Track for Phase II Soon 

Download Full 10-Page Note with Important Disclosures: Morning Note 08-01-12 NAVB

Navidea announced that the execution of their option agreement with Alseres Pharmaceuticals (formerly Boston Life Sciences) to license [123I]-E-IAFCT Injection (also known as CFT, formerly Altropane®), an Iodine-123 radiolabeled imaging agent, being developed as an aid in the diagnosis of Parkinson’s disease and movement disorders.

License Terms
1.) Navidea paid Alseres $175,000 in upfront cash.
2.) Navidea issued Alseres 300,000 shares of Navidea common stock.
3.) The option also anticipates that the license agreement will provide for contingent milestone payments of up to $2.9 million, $2.5 million of which will principally occur at the time of product registration or upon commercial sales, and the issuance of up to an additional 1.15 million shares of Navidea stock, 950,000 shares of which are issuable at the time of product registration or upon commercial sales.
4.) Royalties on net sales of the approved product which are consistent with industry-standard terms.

[123I]-E-IACFT (CFT) is a patented, novel, small molecule radiopharmaceutical used with single photon emission computed tomography (SPECT) imaging to identify the status of specific regions in the brains of patients suspected of having Parkinson’s disease. The agent binds to the dopamine transporter (DAT) on the cell surface of dopaminergic neurons in the striatum and substantia nigra regions of the brain. Loss of these neurons is a widely recognized sign of Parkinson’s disease. The potential advantages of Navidea’s CFT is its high affinity that can generate clean images quickly, beginning within approximately 20 minutes after injection as opposed to waiting periods of 3-6 hours and up to 24 hours as required with other agents. CFT is also a fully synthetic molecule, unlike agents such as GE’s DaTscan, which are derived from cocoa leaves and are regulated as Schedule II controlled substance by the U.S. Drug Enforcement Agency (DEA). CFT can also be sterilized whereas other agents are provided aseptically so CFT could have important and practical convenience in handling advantages.

We believe that this Parkinson’s program is very complimentary to Navidea’s recent acquisition of AZD4694, a radiopharmaceutical imaging agent for Alzheimer’s disease (AD), from AstraZeneca (NYSE:AZN). We further note that both Mark Pykett, CEO and Dr. Thomas Tulip ,EVP are previously from Alseres.

 CLINICAL HISTORY
[123I]-E-IACFT has been administered to over 600 subjects to date. A Phase III Special Protocol Assessment (SPA) for [123I]-E-IACFT is already in place with the FDA (POET-2) and over 50 subjects have been enrolled to establish a training data base. Results from clinical trials (POET-1) have demonstrated that [123I]-E-IACFT has high affinity for DAT and rapid kinetics which enable the generation of clean images quickly, beginning within about 20 minutes after injection while other agents typically have waiting periods from 4 to 24 hours before imaging can occur. In addition to its potential use as an aid in the differential diagnosis of Parkinson’s disease and movement disorders, [123I]-E-IACFT may also be useful in the diagnosis of Dementia with Lewy Bodies (DLB), a common form of dementia after Alzheimer’s disease.

POET-1: In March 2006, Alseres (then known as Boston Life Sciences) ended the Phase III SPA trial named “POET-1″ early with approximately 30% fewer patients than originally specified because non-blinded data indicated that the error rate of general practitioners in the trial was higher than had been anticipated in the trial design. On September 25, 2006, they announced statistically significant results for the primary endpoint from the Company’s POET-1 (Parkinson’s or Essential Tremor) trial for the ALTROPANE® molecular imaging agent. The POET-1 trial was designed to assess whether ALTROPANE imaging is more accurate than the clinical diagnosis of primary care physicians to distinguish between tremors caused by Parkinsonian Syndrome and those associated with other disorders, as judged by comparison to a definitive diagnosis by movement disorder specialists. ALTROPANE scans showed statistically significant superiority over the diagnosis of PCPs on measures of both specificity and sensitivity, the primary endpoint of the trial. Based on data analyzed to date, with the exception of one “possibly-related” urinary tract infection that resolved after treatment, there were no drug-related serious adverse events.

POET-2: After discussions with the FDA, the POET-2 program was designed as a 2-part Phase III program using the optimized ALTROPANE image acquisition protocol. The first part of the program, a multi-center clinical study in subjects to acquire a set of ALTROPANE images, was completed. This set of images will be used to train the expert readers as is the customary process for clinical trials of molecular imaging agents. The second part involves two concurrent, replicate, multi-center Phase III trials. These two concurrent trials, the final design of which is under discussion with the FDA, will be initiated once final agreement on the design of the two trials is reached with the FDA. The completed image acquisition trial design can be found at http://clinicaltrials.gov/ct2/show/NCT00596908 The 2 concurrent Phase III trials have not yet enrolled but the trial design can be found at http://clinicaltrials.gov/ct2/show/NCT00724906

Download Full 10-Page Note with Important Disclosures: Morning Note 08-01-12 NAVB

GenSpera (GNSZ) Note 07-31-12

• FDA Greenlights Phase II for Anti-Androgen Failure Prostate Cancer Patients
• Peer-Reviewed Paper Demonstrates G-202 Design & Mechanism-of-Action
• G-202 Unaffected by Changing Competitive Landscape

Download Full 6-Page Note with Important Disclosures: Morning Note 07-31-12 GNSZ

GenSpera announced that the FDA cleared the proposed Phase II human clinical trial of G-202 in prostate cancer patients who have failed prior hormonal therapy. The Phase II trial will at up to six sites in the U.S. and U.K. with enrollment of up to 40 patients with chemotherapy-naïve, metastatic castrate-resistant prostate cancer. GenSpera is currently working with the respective Institutional Review Boards (IRB) at the participating sites and will begin enrolling the Phase II trial upon the IRB approvals.

Investors should note that G-202 is still needed despite recent advances in prostate cancer. Although several drugs have recently been approved or are in late-stage development such as JEVTANA®, ZYTIGA™ , PROVENGE® and Enzalutamide (formerly MDV3100), they have different mechanisms-of-action to GenSpera’s G-202. Eventually, all patients will become refractory to these anti-androgen and chemotherapies and the disease will progress. In contrast, G-202 kills independently of androgen pathways and in theory could represent a curative option for advanced prostate cancer patients.

Download Full 6-Page Note with Important Disclosures: Morning Note 07-31-12 GNSZ 

StemCells (STEM) Note 07-27-12

• CIRM Awards $20M to StemCells Inc. for Cervical Spinal Cord Injuries

 

Download Full 13-Page Note with Important Disclosures: Morning Note 07-27-12 STEM

The California Institute of Regenerative Medicine (CIRM) followed their reviewers recommendation and awarded $20M to StemCells Inc. for the development of their HuCNS-SC® in chronic cervical spinal cord injury. Specifically, the CIRM’s Disease Team Therapy Development Award program (RFA 10-05) for up to $20M in funding for preclinical development of HuCNS-SC® (purified human neural stem cells) for cervical (neck) spinal cord injury with the goal of filing an investigational new drug (IND) application for human clinical trials within 4 years.

The official CIRM announcement can be found at: http://www.cirm.ca.gov/PressRelease_2012-07-26

The StemCells Inc. project research summary and reviewers recommendation can be found at:
http://www.cirm.ca.gov/ReviewSummary_DR2A-05736

We note that StemCells Inc.’s other application for HuCNS-SC® in Alzheimer’s Disease (application DR2A-05416) was referred back to CIRM’s Grants Working Group for further consideration and is expected to review it again at the next meeting of its governing board currently scheduled for September 6th. StemCells Inc.’s request for review can be found at: http://cirm.ca.gov/files/meetings/pdf/2012/072612_item_6_5416_ICOC.pdf

We are reiterating a Strong Speculative Buy on StemCells Inc. as we continue to believe they are distinguishing the company as the most advanced player in the stem cell space. They are becoming a significant leader in the publicly-traded stem cell space during 2012 with the extraordinary results showing myelination in children with PMD combined with their advancing clinical programs Chronic Spinal Cord Injury, Dry Age-Related Macular Degeneration and Alzheimer’s Disease providing significant milestones in unlocking the value of their HuCNS-SC® (Human Central Nervous System Stem Cells). Now StemCells Inc. has once again shown exceptional results, this time in Alzheimer’s Disease in preclinical studies.

Download Full 13-Page Note with Important Disclosures: Morning Note 07-27-12 STEM

FluoroPharma (FPMI) Note 07-26-12

• BFPET Demonstrating Strong Initial Results in Cardiac Artery Disease Patients
• Three “Shots-on-Goal” in Cardiac PET Imaging (BFPET/CardioPET/VasoPET)
• Cardiac Disease is #1 Killer in both the U.S. and the World
• Attractive Candidate for Growing M&A Interest in Molecular Imaging Space

Download Full 7-Page Note with Important Disclosures: Mid-Day Note 07-26-12 FPMI

FluoroPharma announced successful Phase I imaging results for the initial patients using FluroPharma’s BFPET imaging agent for measuring cardiovascular blood flow in combination with PET (positron emission tomography) during stress-testing in patients with Cardiac Artery Disease (CAD).

The investigator-sponsored trial administers BFPET to patents with CAD, which can be compared against images using the stress perfusion imaging Cardiolite® (technetium Tc99m sestamibi) which uses SPECT (single-photon emission computed tomography). The results for the initial patients demonstrated that BFPET images were of high quality and yielded diagnostic utility as well as increased resolution using PET. BFPET has already successfully completed a Phase Ia clinical trial in 12 healthy volunteers with no adverse events and no clinically significant changes noted in follow-up clinical and laboratory testing (trial ID# NCT00733460). We believe these results are highly supportive for FluoroPharma’s planned Phase II human clinical trial as BFPET has the potential for non-invasive diagnostic images with higher specificity than Cardiolite®.

Download Full 7-Page Note with Important Disclosures: Mid-Day Note 07-26-12 FPMI

 

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