There is a rumor afloat that LGND's upcoming mega diabetes deal will be with JNJ. Has anyone heard this rumor? Such a move makes sense for several reasons.
LGND's joint venture with AGN (a JNJ competitor in eye care) is clearly in a leadership position in the area of retinoids. They have 5 compounds in the clinic (Oral Targretin, Topical Targretin, Oral Panretin, Topical Panretin, and Oral ALRT1550). Moreover, AGN's Tazarotene is now making an impact with dematologists.
LGND has also announced that 3 more retinoids are slated for the clinic next year inclusing an anti-retinoid designed to overcome side effects associated with trans-retinoids like tretinoin, the active ingredient in JNJ's Retin-A and Renova.
JNJ already has a diabetes presence via its alliance with AMLN. Pramlintide trials are stuggling somewhat, especially in the area of type II diabetes.
LGND's rexinoids appear to act via the same pathway as WLA's TZD, Rezulin. Rexinoids activate RXR alpha which then partners with PPAR gamma, the target of TZDs. Animal models of type II diabetes show that Rexinoids (like Targretin or ALRT268) can significantly lower glucose, insulin, and triglyceride levels, as canTZDs. However, when given in combination, the two drugs produce a synergistic effect on the three endpoints.
LGND volume and price have had significant moves, largely due to rumors of the diabetes deal as well as stellar clinicals released last week (trial HALT of topical Panretin for KS, and complete remissions for oral Panretin for APL). LGND presented at BioCentury yesterday (volume topped 1 million), and will speak again at Bear Stearns next week (possibly on European clincal data for type II diabetes). They will follow that with presentations at UBS, Oppenheimer, Robertson Stephens, and Hambrecht & Quist. Should be an interesting time. Rumors on the diabetes announcement target the middle or end of next month. |
