Merck KGaA bids for SpringWorks (SWTX), Evolus (EOLS) receives FDA nod & Prothena (PRTA) struggles
Shares of SpringWorks Therapeutics, Inc. (NASDAQ:SWTX) surged earlier this week after Germany-based Merck KGaA (OTPK:MKGAF) confirmed a published report that it was in advanced discussions to acquire SpringWorks. About a year ago, takeout rumors were swirling around SpringWorks with Merck KGaA and AbbVie Inc. (NYSE:ABBV) cited as potential bidders.
In November 2023, SpringWorks gained approval of its drug nirogacestat as a monotherapy to treat desmoid tumors. While the company’s pipeline also includes the drug mirdametinib, we issued a report in August 2024 forecasting positive data from a phase II clinical trial of nirogacestat testing the drug as a treatment for ovarian granulosa cell tumors (OvGCTs).
SpringWorks has yet to report definitive results from the OvGCT trial. Given the ~62% increase in SpringWorks’ stock price in the last six months, SanaCurrents is discontinuing coverage and exiting part of its position in SWTX as it appears likely Merck KGaA’s effort will succeed or another bidder may emerge.
Evolus, Inc. (NASDAQ:EOLS) said on February 13 the FDA approved its Evolysee Form and Smooth hyaluronic gels as dermal filler treatments. The company plans to launch the products in the second quarter of 2025. We issued a report on the FDA’s Evolysee decision in late January 2025..
Evolus shares were trading at ~$15.25 per share on February 14. we are discontinuing coverage and exiting part of its position in EOLS.
Prothena Corporation plc (NASDAQ:PRTA), which is advancing a platform of drugs aimed at misfolded proteins, has struggled to overcome last December’s negative trial results from its drug prasinezumab. Prasinezumab missed its primary endpoint in a mid-stage trial as a treatment for Parkinson’s disease. Prothena is developing the drug with Roche Holding AG (OTCQX:RHHBY).
We issued a report in June 2024 on another Prothena drug, birtamimab, as a treatment for AL Amyloidosis with advanced cardiac involvement.
Prothena has yet to report the results of the birtamimab phase III trial. While the trial still may yield a positive outcome for birtamimab, we are discontinuing coverage and exiting its position in PRTA. The company’s success appears tied to the three compounds it has partnered with large companies, rather than birtamimab, which it owns outright. Prothena’s stock price has slid ~33% since June 2024.
Disclosures:
Discontinuing coverage and exiting part of positions in SWTX and EOLS.
Discontinuing coverage and exiting position in PRTA.