A biotech that goes from zero drugs to one drug on the market is huge. Having revenue, any revenue, is the lifeline for profitability.
But then what? One drug doesn't make a successful biotech, and a post-launch slowdown is inevitable eventually. To keep the growth story alive, one-drug wonders have to have a second hit. No one wants to be the next Baha Men. Who? you ask. They released "Who Let the Dogs Out" in 2000, never to be heard of in the mainstream again.
Here are five drugmakers hoping not to follow a similar fate of the one-hit wonders they resemble.
"Whip It" by Devo
After a disappointing launch of its prostate-cancer treatment Provenge, Dendreon
The biotech looked to be on task to have a quick blockbuster -- it was guiding for sales of at least $175 million in the fourth quarter -- but after picking up capacity, the drug sales didn't follow suit.
Picking up Provenge sales is important, but getting a second hit might be what it takes to get investors interested again. Provenge is a novel technology that trains the immune system to attack the cancer. Despite the positive phase 3 trials, there are still investors -- and probably some doctors -- that don't believe it's real.
Getting positive trial data for DN24-02, its immunotherapy for treating HER2 positive tumors, would be a step in the right direction. Dendreon just enrolled the first patient into a phase 2 trial for DN24-02 earlier this month, so we'll have to wait awhile to see whether Dendreon can have a second hit.
"I'm Too Sexy" by Right Said Fred
Elan's
Left with just the neurodegenerative and autoimmune business, its Alzheimer's disease treatment bapineuzumab is Elan's next chance at a blockbuster. Elan had been working with Wyeth, which then became Pfizer
"I Wanna Be Rich" by Calloway
Suing your marketing partner isn't necessarily advisable, unless of course it'll make you rich. Onyx Pharmaceuticals
The biotech also has another cancer drug, carfilzomib, which it recently submitted to the Food and Drug Administration for approval. In short order Onyx could go from one drug on the market to three. That's one way to get rich.
"Nothing Compares 2U" by Sinead O'Connor
Vertex Pharmaceuticals'
Before that, though, Vertex will hear about its cystic fibrosis treatment Kalydeco, which it submitted to the FDA this month. Considering the data to date and the unmet need, an approval next year seems extremely likely. Kalydeco treats only a small subset of cystic fibrosis patients, so it remains to be seen whether its launch can compare to Incivek.
"Don't Worry, Be Happy" by Bobby McFerrin
Since the launch of Momenta Pharmaceuticals'
Sanofi recently cut into its sales with the launch of an authorized generic, and Amphastar Pharmaceuticals and Watson Pharmaceuticals have gained approval for their generic version but they haven't launched it yet because Momenta sued to stop their sales. More worrying.
Fortunately, Momenta investors do have something to be happy about: Generic Lovenox isn't Momenta's only iron in the fire. It has a generic version of Teva Pharmaceuticals'
"I'll Be There for You" by The Rembrandts
If you want to keep track of any of these biotechs as they go for hit No. 2, add them to the Fool's watchlist service. Add all five, or add them individually below.
- Add Vertex Pharmaceuticals to My Watchlist.
- Add Onyx Pharmaceuticals to My Watchlist.
- Add Momenta Pharmaceuticals to My Watchlist.
- Add Elan to My Watchlist.
- Add Dendreon to My Watchlist.
