Roche Amasses $12B to Trial its New Cancer and Hemophilia Drugs
Roche has now scored a win with its Tecentriq, a cancer immunotherapy, as it slowed the progression of previously untreated lung cancer in a large clinical trial when combined with a chemotherapy regimen. And it swept a double header early this week with their report of another successful late-stage study for its newly approved hemophilia A drug Hemlibra, further setting the stage for a painful showdown with market leader Shire.
The back-to-back successes drove up Roche’s shares by more than 6% now, adding $12 billion in market cap.
Hemlibra seems poised to seize a big share of the hemophilia market. The FDA on November 16 approved the drug for use by patients that can’t be helped by some other treatments. Monday’s trial data showed the drug also works in a larger group of patients, substantially increasing its sales potential. The drug is priced below other medicines in its approved patient group, and it’s price-competitive with alternatives in the broader population.
In lung cancer, the principal threat to Roche isn’t a new treatment, but price war. Monday’s data should net Tecentriq an approval in newly diagnosed lung cancer. That should be a significant sales
boost for Roche.But it would compete with Merck & Co. Inc.’s better-established Keytruda, which is approved to treat lung cancer on its own and in combination with chemotherapy.
“We are extremely encouraged by these results and will submit these data to health authorities globally with the goal of bringing a potential new standard of care for the initial treatment of lung cancer,” Sandra Horning, Roche’s chief medical officer, said.
The successes weighed on hemophilia player Shire, which is facing a more powerful contender for its market share in hemophilia, and AstraZeneca. Both rivals saw their shares slip against the Roche spike.
