For the first time, the U.S. FDA just approved a treatment to delay type 1 diabetes.
According to ABC News:
“Teplizumab, a monoclonal antibody that will be marketed under the brand name Tzield from pharmaceutical companies Provention Bio and Sanofi, is administered through intravenous infusion. The injection was shown in clinical trials to delay the onset of insulin-dependent type 1 diabetes for patients with autoantibody markers of early risk by over two years, with hopes for some that it can delay onset even longer.”
This is big news, considering the only other treatment has been a lifetime of insulin replacement. In 2019, about 28.7 million people just in the U.S. have type 1. On top of that, about 64,000 people are diagnosed with it every year, according to the U.S. Centers for Disease Control and Prevention.
While Provention Bio (PRVB) and Sanofi (SNY) should do well on the news, investors may also want to keep an eye on MacroGenics (MGNX). Provention Bio bought the type 1 diabetes drug from MacroGenics in 2018. As part of that deal, Provention Bio agreed to pay MGNX $60 million once the drug was approved by the US FDA. Once the drug is commercialized, MGNX could receive another $225 million in milestone payments, in addition to royalties.