The Burrill Report


The Department of Veterans Affairs has decided to quit using Roche’s Avastin to treat wet age-related macular degeneration, a potential boon for Regeneron Pharmaceuticals, which is advancing a competing medicine that could achieve U.S. Food and Drug Administration approval by November 18.

The VA’s decision comes just weeks after the FDA expressed concerns about the potential for Avastin to cause eye infections and blindness because of the way it is prepared for injection by pharmacies.

With Avastin out of the way at the VA, veterans with wet AMD could prove a strong market for Regeneron’s Eyela, which requires fewer eye injections than Roche’s FDA-approved Lucentis, especially if it is priced at a point that is cost-competitive with Lucentis. The VA spent about $42.3 billion on medical care in 2010.

Eyela could win over physicians both within and outside the VA system if doctors begin to shy away from using Avastin for wet AMD because of the potential (though avoidable) dangers in preparing it.

The day of the VA’s decision, shares of Regeneron hit a 52-week high of $79.90, representing a 22.5 percent gain. However, since then, the stock has traded down with the general market.

There is evidence that Avastin, which is only approved to treat cancer, can serve as a cheaper alternative to Lucentis. However, Roche has argued against off-label use the drug, which has hurt sales of Lucentis. Eyela, which achieved unanimous support from an FDA advisory committee on June 17, could make further waves in the wet AMD market, a market Regeneron estimates to have an annual value of $3 billion.

AMD is the leading cause of blindness for people over age of 65 in the United States and Europe.




September 22, 2011
http://www.burrillreport.com/article-va_stops_using_avastin_for_eyes_boosting_prospects_for_regeneron_drug.html