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Glaxo Two-Drug HIV Combo Meets Primary Endpoint in Phase III

Earnings Estimates Moving Higher for Vanda (VNDA): Time to Buy?
Vanda (VNDA) shares have started gaining and might continue moving higher in the near term, as indicated by solid earnings estimate revisions.

GlaxoSmithKline plc’s GSK HIV company, ViiV Healthcare announced that the two late-stage studies testing its two-drug HIV regimen of dolutegravir (Tivicay) and lamivudine (Epivir) met the primary endpoint.

The two phase III studies, GEMINI-1 and GEMINI-2, evaluated the two-drug regimen in treatment naïve - those who have not received prior antiviral therapy -  HIV-1 infected adults compared to a three-drug regimen of dolutegravir plus tenofovir alafenamide fumarate and emtricitabine. The studies demonstrated that the dolutegravir and lamivudine regimen was non-inferior to the standard three-drug regimen in HIV control. This means a two-drug HIV regimen can control HIV in treatment-naïve patients as effectively as a three-drug regimen.

Shares of Glaxo were up almost 2% on Thursday in response to the positive news. This year so far, Glaxo’s shares have gained 18.2% against the industry’s decline of 4.2%. Shares of Glaxo also received a boost this week as Mylan’s MYL application to get approval for a generic version of Glaxo’s blockbuster respiratory drug, Advair was rejected for the second time by the FDA.

 

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Full results from the studies will be presented at a future medical meeting. Regulatory application to get the two-drug regimen of dolutegravir and lamivudine approved are expected to be filed later this year.

Glaxo has several phase III studies ongoing evaluating two-drug regimens for HIV-1 treatment. These studies, conducted across global research centers, include approximately 1,400 HIV infected men and women.

The two-drug regimens reduce the number of medicines HIV patients take without compromising on the efficacy of a conventional three-drug regimen, thereby reducing long-term toxicity concerns.

Juluca is Glaxo’s first and the only approved two-drug regimen. It gained approval in EU last month and in the United States in November last year. It generated sales of £10 million in the first quarter of 2018. Glaxo has developed Juluca in partnership with J&J JNJ. Juluca combines two approved HIV drugs — Glaxo’s Tivicay/dolutegravir(50 mg) and J&J’s Edurant/rilpivirine(25 mg) — into a single, once-daily pill for the treatment of virologically suppressed HIV-1 infection.

ViiV Healthcare is an HIV company majorly owned by Glaxo. Pfizer PFE and Japanese pharma company, Shinogi have minor stakes in ViiV Healthcare.

Glaxo currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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