The biotechnology sector has bounced back sharply this week after struggling since the end of April. Indeed, the sector was headed into bear market territory before the reversal this week.
So far this week, the iShares NASDAQ Biotechnology Index (ETF) (NASDAQ:IBB) gained more than 3.3%. Year-to- date though, IBB still remains down more than 23%. This is one of the worst starts made by the sector in years.
The poor performance of the biotech sector can be attributed to weakening fundamentals. The latest earnings season saw some major biotech companies, including the likes of Gilead
Sciences (NASDAQ:GILD) and Biogen (NASDAQ:BIIB) report disappointing results. Biotech companies have been also struggling to gain access to capital markets, with several IPOs being cancelled and the pace of secondary offerings also slowing down.
Aytu BioScience Inc. (OTCQX:AYTU) is a Colorado-based commercial-stage specialty pharmaceutical company focused on global commercialization of novel products in the field of urology.
AYTU currently markets two products: ProstaScint® (capromab pendetide), the only FDA-approved imaging agent specific to prostate cancer, and Primsol® (trimethoprim hydrochloride), the only FDA-approved trimethoprim-only oral solution for urinary tract infections. The company recently acquired exclusive U.S. rights to Natesto®, the first and only FDA-approved nasal formulation of testosterone for men with hypogonadism.
This morning the company provided an update on Natesto’s commercial launch.
Aytu BioScience today provided an update on the strategic steps it has taken to expand and optimize its commercial infrastructure in support of the planned July 2016 launch of Natesto.
The product will be launched into the $2 billion U.S. testosterone replacement therapy (TRT) market. The company also announced strategic steps to enhance the commercial efforts for its currently marketed products ProstaScint® and Primsol®.
Among the changes made by the company is the appointment of Jonathan McGrael to the newly created role of Vice President of Commercial Operations. Further expansion of the commercial infrastructure includes the recent hiring of a team of seasoned pharmaceutical sales managers—all of whom have extensive experience in the pharmaceutical industry and strong
histories of top sales management performance—to build, train, and lead Aytu's expanding U.S. specialty sales force.
Josh Disbrow, CEO at Aytu BioScience, said that the company is moving aggressively toward a launch of Natesto in late July 2016, following the June 30, 2016, expiration of Acerus'; existing
U.S. commercial agreement with Endo International. While the announcement was positive, the stock did dip over 5% in today’s trading and remains near its 52-week low as investors shy away from the biotech sector as a whole for the time being.
