Investors in the pharma/biotech sector eagerly wait for pipeline updates as they play an important role in deciding whether or not to invest in a particular company. Pipelines are of prime importance as far as pharma/biotech companies are concerned. These companies spend a significant amount in advancing their pipelines.

AstraZeneca ( AZN ) and partner Amgen ( AMGN ) announced encouraging results from the pivotal, multi-arm phase III AMAGINE-3 study (n>1800) on their psoriasis candidate, brodalumab.

The study evaluated the safety and efficacy of brodalumab (140 mg and 210 mg) doses given every two weeks to patients suffering from moderate-to-severe plaque psoriasis in comparison to placebo and Johnson & Johnson's ( JNJ ) Stelara. Amgen and AstraZeneca said that the primary as well as secondary endpoints were achieved.

Results showed that a greater proportion of patients treated with brodalumab 210 mg (36.7%) and brodalumab 140 mg (27%) achieved total clearance of skin disease as measured by the Psoriasis Area Severity Index (PASI 100) compared to Stelara (18.5%) and placebo (0.3%).

As far as PASI 75 score (at least a 75% improvement in disease severity) is concerned, results showed that a higher number of patients on brodalumab 210 mg (85.1%) achieved the same as compared to those on brodalumab 140 mg (69.2%), Stelara (69.3%) and placebo (6%).

We note that the companies' AMAGINE program consists of three phase III studies - AMAGINE-1, AMAGINE-2 and AMAGINE-3. While results from the AMAGINE-2 study are expected by year end, AstraZeneca and Amgen have already revealed encouraging results from the AMAGINE-1 study (read more: Amgen-AstraZeneca Psoriasis Drug Scores ).

We are encouraged by the positive results so far from the AMAGINE program on brodalumab. However, the psoriasis market looks extremely crowded given the presence of products like Stelara, Enbrel and Otezla. The successful development of brodalumab, an important candidate for both AstraZeneca and Amgen, is crucial. Brodalumab is also being developed for the treatment of asthma. According to AstraZeneca, analyst estimates for brodalumab range between $0.5 billion to $1.5 billion.

Amgen and AstraZeneca are both Zacks Rank #3 (Hold) stocks. A better-ranked stock in the health care sector is AMAG Pharmaceuticals, Inc. ( AMAG ) carrying a Zacks Rank #1 (Strong Buy).

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AstraZeneca/Amgen's Brodalumab Positive in Psoriasis Trial - Analyst Blog