Morgan Stanley Global Healthcare Conference Update: Celgene, Merck and Gilead
The Morgan Stanley Global Healthcare Conference ran from September 12 through 14, with numerous biopharma companies making presentations, updating their operations and pipeline activities. Here’s a look a few of the highlights.
Celgene’s president Hematology & Oncology, Nadim Ahmed, and chief financial officer, David Elkins, sat down to talk with Morgan Stanley analyst Matthew Harrison. Ahmed noted that the company has been having a good year, and “raised guidance twice already.” In terms of its pipeline, they had a good summer with three positive Phase III trials. “We’ve all squared Revlimid in lymphoma, but especially exciting was luspatercept, a new molecule, one of our key potential blockbuster molecules delivering in MDS and beta-thalassemia.”
Ahmed went on to say over the next one to two years, they’re looking at regulatory submissions and approvals in the hematology/oncology space with four compounds.
Elkins cited three strengths for the company, noting its commercial execution and the underlying business doing so well. Secondly, “as you think through the pipeline and the number of late-stage products that we have come into market over the next 12 to 18 months is very exciting and then have that commercial vehicle as well to make the most of that.” And the third is Celgene’s capability, technical expertise and ability to leverage that with global alliances.
In particular, Ahmed and Elkins talked up the possibilities of luspatercept. Ahmed noted, “With luspatercept obviously we can simultaneously pursue two indications, taking two shots on goal. You don’t always deliver when you take two shots on goal. So, I think the thing that really excited us was to have positive Phase III data in both MDS and beta-thalassemia, and the fact now that we’ve shown in two distinct diseases we’ve been able to impact anemia.”
Merck & Co’s chairman and chief executive officer, Ken Frazier, and Roger Perlmutter, president of Merck Research Labs, spoke with several Morgan Stanley analysts. Frazier came right out of the gate by noting that although Merck definitely has a powerhouse with Keytruda, what he calls “a formidable opportunity,” its Lynparza and Lenvima and other early-stage assets are very strong as well. “This portfolio is the strongest portfolio I’ve ever seen inside Merck anchored by Gardasil,” Frazier said, “which is of course not a new vaccine, but is looked at through new eyes by public health authorities around the world in terms of gender neutrality, in terms of eliminating HPV disease and all the things that come along with it including cervical cancer.”
Perlmutter discussed Keytruda’s growth drivers beyond lung cancer. “I think everyone recognizes that Keytruda is the broader spectrum anti-neoplastic agent introduced into clinical practice probably since radiotherapy. And it has such a broad spectrum of activity that it causes problems in terms of prioritization. We’ve taken the position that we need first to enter those areas where we think we can do the most good for immunology responses in tumors. We begin with SAVAGE studies and advance into first line and ultimately into adjuvant and neoadjuvant.”
Permutter emphasized that Keytruda has been approved in 13 indications in eight different tumor types, including a broad indication for patients with microsatellite instability. It is currently under review for five major indications, including the expansion out of non-squamous into squamous cell carcinoma and an upcoming FDA target action as a combination treatment. “So the spectrum is very large. Hepatocellular carcinoma is coming along, and the combination studies as well. I think everybody in this audience knows that if you look at clinicaltrials.gov there are more than 850 studies that are using Keytruda and more are being added every single day.”
Gilead Sciences’ John McHutchison, chief scientific officer and Head of R&D, John Milligan, president and chief executive officer, and Robin Washington, executive vice president and chief financial officer, spoke with Morgan Stanley analyst Matthew Harrison. Milligan touted the company’s “terrific launch of Biktarvy, our HIV product,” for which they have great expectations. He also mentioned some new blood to the executive team, specifically Laura Hamill, coming on as executive vice president of Worldwide Commercial Operations.
Since Milligan announced in late-July that he was stepping down after 28 years with Gilead, Harrison asked him to reflect on his career with the company. Milligan said, “When I joined, I was the 32nd employee. We now have over 11,000 employees with employees around the globe. So, it’s really been phenomenal to be part of that growth and success story. You know, I’ve been a chief of something within the company for 16 years now and I’ve watched revenue grow from when I became CFO from $180 million to our peak of $32 billion.”
Hutchison discussed the company’s pipeline, noting they are expecting results from the Phase II programs, DARWIN and FITZROY, soon. These programs are evaluating filgotinib, a JAK1 inhibitor, in rheumatoid arthritis, Crohn’s disease and ulcerative colitis, as well as in other autoimmune and inflammatory diseases. In terms of the drug’s safety, Milligan said, “It’s been a very consistent drug. It’s a very well-behaved drug in terms of efficacy. It seems to be on the better end and everything that we look at. And on the safety profile, it’s on the better end.”
Discussing the company’s commercial activities, Robin Washington said, “As you’ve heard, we’re very confident in our business model. It’s generating significant operating cash flows and our belief is the right thing to do is to take those and reinvest them and continue to do deals.”