Acceleron Pharma traded slightly under the radar during 2019 as the company’s luspatercept partnership with Celgene was overlooked when challenges emerged to Bristol-Myers Squibb (NYSE:BMY) proposed purchase of Celgene.
The FDA approved luspatercept, branded as Reblozyl, to treat anemia in adult patients with beta-thalassemia who require regular red blood cell (RBC) transfusions on November 8, 2019. One week later, SanaCurrents issued a pivotal sentiment for positive luspatercept data in a second anemia indication, lower risk myelodysplastic syndromes (MDS)-associated anemia, at a medical conference in December 2019. SanaCurrents assigned a second pivotal sentiment to the FDA decision to approve luspatercept in the MDS indication on April 4, 2020.
Acceleron did report positive luspatercept in December 2019, providing the foundation for FDA approval. An investment in Acceleron on November 15, 2019, would have yielded a 23.2% return by the time of the December data announcement.
Acceleron’s transforming growth factor beta (TGF-beta) platform also produced sotatercept, a drug designed to treat pulmonary arterial hypertension (PAH), a much larger disease market than the two anemia indications. In January 2020, Acceleron reported positive sotatercept data in a phase II PAH trial. The company’s stock shot up to $93.00 per share from $52.87 per share in one week after the PAH trial results.
Investors continued to support Acceleron at approximately $90 per share after the PAH results. Though the coronavirus pandemic shock in March sent Acceleron shares to a low of $70.82 per share, the stock rebounded to close at $80.78 per share on Friday, April 3.
Acceleron announced the FDA approved luspatercept in the MDS indication after the market closed on April 3. The news of the decision sent Acceleron shares higher, closing at $87.21 per share on Monday, April 6.
A second, equal investment in Acceleron (e.g., the second of two $1,000 purchases) on November 15, 2019, would have yielded a 112.9% return by the time of the FDA decision in April 2020.