Astra pill halves high cholesterol; raises blockbuster hopes
AstraZeneca Plc’s experimental cholesterol drug significantly reduced “bad” cholesterol in a midstage trial, boosting hopes for a potential blockbuster that could be part of a powerful combination medicine targeting weight loss and related ailments.
The once-a-day pill led to a 50.7% reduction in low-density lipoprotein cholesterol, often called LDL, when given on top of statins, according to data presented at the American College of Cardiology in Chicago. High levels of this form of cholesterol are a key risk factor in strokes and heart attacks.
Shares of Astra rose as much as 2% in early trading in London Tuesday. The stock was up 6% in the 12 months through Monday’s close.
Dyslipidemia, where patients may have abnormal cholesterol levels, remains unsolved, with the standard of care being statins, said Sharon Barr, the U.K. drugmaker’s executive vice president of biopharmaceuticals R&D. Although statins have been available for almost 40 years, the problem of high cholesterol has persisted.
“We think we have a winning molecule here,” Barr said in an interview. “We think that we have something that can be best in class, that can offer patients the convenience that they need to more effectively manage their LDL and prevent the serious cardiovascular events that will allow them to have better, longer, healthier lives.”
The drug is “one of the industry’s most neglected assets,” Handelsbanken analyst Mattias Häggblom said in a note ahead of the data’s release. While AstraZeneca pegs peak annual sales at more than $5 billion, Handelsbanken puts that figure at $8.5 billion.
The drug, which goes by the name AZD0780, inhibits a protein called PCSK9. Merck & Co. has a competing medicine in development targeting the same protein.
Merck’s drug resulted in a reduction of up to 60.9% of bad cholesterol, higher than Astra’s. A key difference between the two, however, is that Merck’s pill requires patients to fast for at least eight hours before taking it. Astra’s drug doesn’t have that limitation. The British drugmaker also believes its pill lends itself better for use in conjunction with other drugs.
Astra’s pill could also offer patients a more convenient – and potentially more affordable – option to PCSK9 shots, Amgen Inc.’s Repatha and Regeneron Inc.’s Praluent.
The study shows the pill offers strong efficacy and a clean side effect profile, with the daily dosing and lack of fasting requirement positioning it for multiblockbuster peak sales, said JPMorgan Chase & Co. analyst James Gordon in a note. Astra is about two years behind Merck with its pill, although the two drugs have broadly similar efficacy and tolerability “potentially allowing AZD0780 to be a very competitive product,” he added.
The market for the PCSK9 class of drugs could grow to $14 billion by 2034, from $4 billion in 2024, Goldman Sachs’ Rajan Sharma said in a note ahead of the data being released.
Astra wants to eventually create combination medicines for patients with diabetes or high cholesterol, potentially combining a GLP-1 with AZD0780. The company is also putting cash behind efforts to boost its cardiovascular drug pipeline, announcing last year a $2 billion licensing deal with China’s CSPC Pharmaceutical Group Ltd to gain access to its cholesterol medicine.