Amylyx Acquires Avexitide from Eiger to Expand in Insulin Diseases

Amylyx Pharmaceuticals, based in Cambridge, Massachusetts, successfully finalized a deal with Eiger last Friday. As per the agreement, Amylyx will fully acquire the development, manufacturing, and commercialization rights for the GLP-1 antagonist Avexitide. This acquisition has positively influenced Amylyx's stock, leading to a 5% increase and positioning the company's market capitalization at $126 million at the time of the report. The company's latest financial statement reveals that Amylyx had $373.3 million in cash, equivalents, and short-term investments by the end of the first quarter of this year.

Information from Eiger's official website highlights that Avexitide is currently in Phase 2 clinical trials. The drug is primarily intended to treat neonatal hypoglycemia and congenital hyperinsulinism. Notably, Eiger, headquartered in Palo Alto, California, applied for bankruptcy protection in April this year.

Avexitide operates by antagonizing the GLP-1 receptor to counteract excess GLP-1 secretion. This mechanism diverges from the mainstream approaches for addressing weight loss and diabetes. Amylyx has not yet shared specific development plans for the new indications of Avexitide.

Amylyx has an established presence in the realm of insulin-related diseases, with a Phase 2 candidate drug being developed for Wolfram syndrome. This genetic disorder involves insulin-dependent diabetes mellitus, typically appearing in childhood, and affects around 3,000 individuals in the United States. Beyond this, Amylyx focuses on neurological and neurodegenerative diseases, such as progressive supranuclear palsy, ALS (amyotrophic lateral sclerosis), and Alzheimer's disease.

The company also announced it will continue research and development on its previously withdrawn ALS treatment drug, Relyvrio, and will explore other potential drugs for nervous system disorders. On April 4th this year, following unsatisfactory Phase III clinical trial results, Amylyx revealed plans to withdraw Relyvrio from the US and Canadian markets and lay off 70% of its workforce.

In a large Phase III clinical trial reported earlier this year, Relyvrio did not perform better than a placebo in improving participants' ALS Functional Rating Scale scores, which measure capabilities like respiration, swallowing, and speech over 48 weeks. The drug also failed to significantly benefit patients' quality of life, overall survival rate, and respiratory function. Relyvrio had been priced at $158,000 annually, and its first-year sales reached $380 million. In light of its withdrawal, Amylyx assured that patients wishing to continue treatment could contact their healthcare providers to access the free drug program.

Amylyx's strategic acquisition of Avexitide aligns with its broader goal of addressing complex medical conditions, particularly in the fields of insulin-related and neurological diseases. The company is navigating a challenging landscape, balancing the pursuit of groundbreaking treatments with the harsh realities of clinical trial outcomes and market demands.