Street View: Wait for more news on ObsEva's heavy menstrual bleeding drug

Obseva SA

10/12/2019 13:53

** Switzerland-based drug developer  OBSV.O  said on Monday 
one of the two late-stage trials testing linzagolix, its
experimental drug to treat heavy menstrual bleeding due to
benign tumours in the uterus, was successful  urn:newsml:reuters.com:*:nGNE4xPWL8 
    ** However, in a conference call discussing the results, co
said a small group of patients had reduced bone mineral density
(BMD), a measure of bone strength; co suspects these patients
were those who received higher doses of the drug
    ** U.S.-listed shares of OBSV fell ~29.3% on Monday, closing
at $3.23; however stock rises 22.91% to $3.97 premarket and is
one of the top pct gainers and most actively-traded volumes
before opening bell
    
STRONG EFFECTIVENESS, BUT NEED LONGER FOLLOW-UP ON BONE SAFETY
    ** Credit Suisse ("neutral", PT: $4) says patients on a
lower dose of linzagolix may not necessarily have to take
estrogen as an add-on therapy, which could differentiate the
treatment from available drugs; estrogen is commonly taken to
avoid BMD loss
    ** Jefferies ("buy", PT: $13) says linzagolix could be a
best-in-class treatment for patients with heavy menstrual
bleeding, but more follow-up data is needed to establish bone
safety and consider whether patients ought to receive the lower
dose of the drug, as they are reluctant to take estrogen
    ** BMO Capital Markets ("outperform", PT: $10) decreases the
drug's estimated chances of success to 60% from 70% based on BMD
loss; however, says results from second late-stage study due in
Q2 2020, may be able to restore confidence
    ** RBC Capital Markets ("outperform", PT: $19) raises
likelihood of linzagolix's success to 65% from 50%, saying that
while the BMD loss raises concerns, the drug is a win overall

 (Reporting by Ruhi Soni in Bengaluru)
 ((Ruhi.Soni@thomsonreuters.com;))