This article first appeared on GuruFocus .
Roche Holding ( RHHBY ), the pharmaceuticals and diagnostics group, reported that its experimental kidney drug sefaxersen cut protein in patients' urine significantly more than a placebo in a Phase 3 trial. Its U.S. depositary receipts slipped about 1.0% to $55.11. At that price, Roche trades 33.15% above its $41.39 GF Value. Investors are paying a premium even as this drug's longer-term benefits remain unproven.
The trial cleared its main test after 37 weeks: patients receiving sefaxersen had a greater reduction in urinary protein, a marker of kidney damage. Roche said it found no new safety signals. The study remains underway to measure kidney function through week 105, giving investors a more direct test of whether the early result lasts.
The opportunity is real, but so is the hurdle. Fierce Biotech reported that Roche plans to discuss the interim findings with regulators while Novartis already has an approved treatment targeting the same protein. Sefaxersen has earned a closer look. Its case for patientsand for Roche shareholderswill be stronger if the later data show lasting protection of kidney function.
