Two arms better than one for Chiasma
Chiasma has finally caught a break with a positive phase III readout for Mycapassa and a corresponding 24% lift in its share price. The rare disease company is now on track for an end of year filing and could, by mid-2020, have the first approved oral drug for adult acromegaly. This might put the group's shares back to where they were three years ago, before they lost 60% of their value following an FDA complete response letter for Mycapssa, as a result of its registrational trial being uncontrolled. Chiasma reran its phase III trial with a control arm and a more rigorous threshold for insulin-like growth factor reductions and, with a win in the bag, the chances of a repeat of 2016 look significantly reduced. Having learned lessons on the clinical front, Chiasma investors will hope that the group will be as diligent when it comes to marketing Mycapssa. Crinetics Pharmaceuticals is already nipping at its heels, with that company's supporters claiming that Mycapssa has lower bioavailability, which could give Crinetics’ CRN00808 the edge. With those assertions unlikely to be settled without a head-to-head trial Chiasma should take full advantage of its first-mover advantage while it can.