Genfit: positive results from a LOW4 test

“These results confirm the potential superiority of NIS4. Our “in-house” developed a diagnostic tool based on four biomarkers in diagnosing NASH with fibrosis. They also observed patients with Type 2 diabetes,” said Suneil Hosmane, Ph.D., World Diagnostic Director at Genfit.

“The research in this area underscores our commitment to improving the diagnosis and treatment of patients with NASH, a serious and life-threatening disease. Its prevalence is constantly increasing, but remains still largely under-diagnosed.”

Genfit: points to remember

Genefit is a biopharmaceutical company specializing in the early diagnosis, prevention and treatment of cardiometabolic diseases (diabetes, dyslipidemia, etc.). They treat associated disorders such as non-alcoholic steatotic hepatitis (NASH) and diseases affecting the liver or intestines;

There are signs of a strong growth period for Type 2 diabetes-related obesity-related diseases and NASH diseases, with over 20 million adults affected in the US alone.

Their portfolio is divided into several major programs. The first is GFT505 (or Elafibranor), in NASH, with another two biomarker programs on Type 2 diabetes. They also have a program on the deregulation of circadian rhythm, which is associated with Type 2 diabetes.

They will also have a program on how the deregulation of the immune system affects the liver and/or intestines. Finally, they have a program on how the mechanisms of fibrosis affect the liver and/or intestines: a set of targets is subject to a pharmacological validation program.

The Chinese company Terns held a comfortable cash position of $207 million at the end of 2018. Furthermore, the company increased financial visibility through the agreement with Terns at $228 million in the long term, including $35 million in June 2019.

The points to watch out for

The points to watch out for are very high volatility of value, both in their clinical results and in their competitor’s statements, such as CymaBay or Inventiva. Furthermore, the competitive market for diabetes markers and drugs; high cost of patient recruitment for trial phases.

The product may require many years of development before it can eventually be commercialized. Therefore, the company is not immediately valued on the stock market. It is also necessary to evaluate the potential market for a molecule in development and whether it meets unmet medical needs; benefits of the partnership with Terns.

In 2018, mergers and acquisitions in the sector amounted to nearly $200 billion, a significant increase from 2017. And 2019 is off to a strong start with Bristol-Myers Squibb’s (BMS) takeover of oncology biotech specialist Celgene for $74 billion.

A significant increase in biotechnology and similar industries

Together, they create a giant with $33.3 billion in sales, the world leader in oncology (62% of its sales) and in cardiovascular diseases.

Acquisitions are multiplying in biotechnology in response to the need for the “Big Pharma” to renew their products. In the last year, more than 71% of drugs in clinical development came from biotechs, according to the American trade union, BIO.

The Japanese company Takeda acquired the Irish company Shire for $81.7 billion. For its part, Eli Lilly bought the Loxo Oncology biotech for $8 billion, just after GSK acquired another American biotech, Tesaro.

Same as biotechnology, the CBD and hemp sector is feeling the growth and is bringing profit on the market. The cannabis industry is predicted to be worth more than $14.67 billion by 2026.

One potentially useful investing tool is Hemp.IM app and its companion investment news website. Hemp.IM provides the latest news about the CBD and hemp sector. This important market is beginning to emerge in Poland and the rest of the world and could represent a unique investment opportunity.

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(Featured image by Louis Reed via Unsplash)

First published in Capital, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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