March 18, 2026
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National Biotech Reporter
Good morning. In today's news — one biotech got a third consecutive rejection from the FDA, and a group of analysts think that Eli Lilly's stock is overvalued. Also, a Huntington's researcher speaks on the UniQure-FDA fray and J&J scores a psoriasis pill approval.

Rare disease

Huntington's researcher treads (lightly) into UniQure-FDA fray

From my colleague Andrew Joseph: When the biotech UniQure last year said that its experimental gene therapy for Huntington’s disease had slowed the progression of the untreatable condition by 75%, Ed Wild, a longtime Huntington's clinician at University College London and one of the trial's investigators, described the outcomes as “the result we’ve been waiting for.”

A lot, of course, has changed since then.

To recap: The results seemed to tee up accelerated approval at the FDA. But then the FDA, which UniQure said had previously agreed on the company’s trial design and reliance on historical data as a comparator group, told the company that it could no longer apply for approval with its data. FDA officials have since suggested they don’t think the therapy works; the agency and company remain at odds over what another trial should look like and whether there was ever an agreement over the accelerated approval application plan in the first place.

Speaking at the Advanced Therapies conference in London today, Wild was diplomatic in discussing what had ensued since the top-line results were announced.

“A new and interesting approach from the agency would be applied,” was how he described the FDA changing its view on whether the earlier study could merit a review and its demand for a new trial with a sham surgery as a control arm.

And on where things may shake out with the FDA and the therapy, called AMT-130: “The agency is in a state of change, and it remains to be seen where they will settle.” (That could have been a reference to the fact that Vinay Prasad, who came into the FDA as the agency’s top gene therapy regulator with the Trump administration and is seen as a harsh scrutinizer of gene therapies, is leaving the agency, a move that was announced soon after the most recent flap over the Huntington’s gene therapy.)

Wild noted that the U.S. had an election since UniQure announced the top-line results of its study last year, with the Trump administration shaking up FDA leadership. Asked how researchers were interpreting the shifting FDA goalposts and what that could mean for designing future trials, Wild said: “We should take nothing for granted. Elections matter, that’s certainly very true.”


Pharma

J&J wins approval for first-of-its kind psoriasis pill

Johnson & Johnson won U.S. approval for a daily psoriasis pill that rivals the benefits of injectable medicines and could reshape one of the most competitive fields in the pharma industry.

The drug, Icotyde, is approved for patients over the age of 12 with moderate to severe plaque psoriasis. It's designed to mimic the effects of top-selling injectable treatments, including AbbVie’s Skyrizi and J&J’s own Tremfya.

Patients with psoriasis typically cycle through topical drugs before getting prescribed an injectable therapy, and many opt out of treatment for reasons of convenience or cost. J&J thinks Icotyde has the potential to expand the market, and it expects the drug to bring in more than $5 billion in peak annual sales.

Read more from STAT's Damian Garde.


exclusive

VC firm Dimension seeks $700 million for new fund

Venture capital firm Dimension is starting to raise its third fund, hoping to amass around $700 million to invest in companies that combine artificial intelligence with science, my colleague Allison DeAngelis has learned.

Dimension was founded by a trio of young VCs who previously worked at Lux Capital and Obvious Ventures. One of its most high-profile investments has been in Chai Discovery, a company working on AI drug discovery that now commands a $1.3 billion valuation.

Read more.



biotech

Aldeyra's eye drug gets rejected for the third time

Aldeyra Therapeutics said yesterday that the FDA has yet again rejected its drug for dry eye disease. The biotech had been going back and forth with the agency since 2022, running new clinical trials with mixed results.

Aldeyra said the rejection letter stated that the “inconsistency of study results raises serious concerns about the reliability and meaningfulness of the positive findings” and that the “totality of evidence from the completed clinical trials does not support the effectiveness of the product.”

My colleague Adam Feuerstein took a look at Aldeyra last week leading up to the FDA decision. He called out what he thought was a red flag — that the company in an SEC filing warned about short sellers who “may be manipulative” and who allegedly publish unregulated research reports that may include “distortions or omissions of actual facts or, in some cases, fabrications of facts.”


pharma

HSBC analysts say market is too optimistic on Lilly

Shares of Eli Lilly fell nearly 6% yesterday, after analysts at HSBC downgraded the stock from hold, saying the market is overestimating the potential size of the obesity market and that there are risks to the direct-to-consumer cash strategy.

“Lilly shares are priced to perfection,” wrote the analysts, led by Rajesh Kumar.

They said they see the obesity drug  market growing to $80 to $120 billion by 2032, rather than the $150 billion some investors have estimated. They also think investors are too optimistic on the launch of Lilly's investigational GLP-1 pill orforglipron and the number of people who will stay on the pill consistently.

The analysts additionally questioned Lilly's reliance on the direct-to-consumer cash market. Because patients are paying for drugs on their own without insurance, the cash market is sensitive to swings in the economy. If there's an economic downturn, many patients will no longer afford continuing to pay cash.

The assumptions around the strength of the direct-to-consumer market seem to be a key reason Lilly and Novo Nordisk's financial outlooks have diverged so much, the analysts wrote.


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Thanks for reading! Until next time,