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Intersect ENT, AllianceRx Execute Pharmacy-Services Agreement

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Intersect ENT, Inc. (XENT - Free Report) recently announced a pharmacy-services agreement that the company has made with AllianceRx Walgreens Prime. The agreement aims for the national specialty-pharmacy distribution of Intersect ENT’s SINUVA (mometasone furoate) Sinus Implant.

Notably, the latest agreement, which expands patient access to SINUVA treatment, is the third partnership of the company with a specialty-pharmacy.

For investors’ note, AllianceRx Walgreens Prime is a renowned player in specialty-pharmacy distribution. It has established relationships among a wide array of payers, notably many of the Blue Cross Blue Shield health plans.

With the latest agreement, Intersect ENT aims to strengthen its sinusitis treatment arm on a global scale.

SINUVA at a Glance

SINUVA is a non-surgical approach to treat recurrent nasal polyp disease in adult patients who have undergone ethmoid sinus surgery. This is a corticosteroid-eluting implant with targeted delivery of an anti-inflammatory steroid (mometasone furoate) directly to the site of disease for up to 90 days.

SINUVA has been clinically proven to reduce polyps and the need for revision nasal surgery. Also, it has demonstrated to improve the symptoms of nasal polyps, nasal obstruction, congestion and decreased sense of smell.

Rationale Behind the Partnership

Notably, per the Center of Disease Control and Prevention’s latest findings, 28.9 million adults in the United States get diagnosed with chronic sinusitis each year.

The agreement is expected to expand access to SINUVA for both patients and physicians via the established specialty-pharmacy infrastructure of AllianceRx. The expertise and infrastructure of AllianceRx can be utilized to dispense SINUVA through either a patient’s medical- or pharmacy-insurance benefit. This efficient and scaled approach will lead to a simplified process of product ordering, fulfillment and treatment for ENT physicians and patients.

Per management, the partnership will enhance access and the company’s ability to make SINUVA available to patients who may benefit from its office-based treatment for recurrent nasal polyps.

Industry Prospects

Per a report by Credence Research, the global sinusitis treatment drugs market was valued at $2,006.9 million in 2017 and is expected to reach $2,695.4 million by 2026 at a CAGR of 3.2%. Factors like rising prevalence of sinusitis, developed diagnostic technologies and growing disease awareness are expected to drive the market for sinusitis treatment drugs.

Given the market potential, the execution of the agreement seems to have been timed well.

Recent Developments

Of late, Intersect ENT has been witnessing few developments in its business.

The company, during its second-quarter earnings call in August, noted that despite the year-over-year decline, sales were stronger than expected. This was driven by the return of sinus-surgery procedures using PROPEL as the U.S. market began to overcome the challenges of the COVID-19 pandemic. According to the company, sales improved in the quarter, as evident from a strong show in May compared with a very soft performance in April. Sales in June were stronger than May. This momentum stemmed primarily from the commercial execution on top of pent-up demand among untreated patients awaiting care for chronic rhinosinusitis. SINUVA patient referrals too experienced a progressive rise through the second quarter.

Intersect ENT, in June, announced favorable results of an U.K.-based independent analysis which measured costs and patient outcomes of the PROPEL steroid-releasing sinus implant compared to a non-drug-eluting spacer following endoscopic sinus surgery for patients with chronic sinusitis.

In the same month, Intersect ENT announced the receipt of the Centers for Medicare and Medicaid Services’ approval for transitional pass-through payment status of its SINUVA Sinus Implant for reimbursement under the Hospital Outpatient Prospective Payment System and Ambulatory Surgery Center Payment System.

Price Performance

Shares of the company have gained 1.8% in the past year compared with the industry’s 17.1% rise and the S&P 500’s 11.5% growth.

Zacks Rank & Key Picks

Currently, Intersect ENT carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the broader medical space are QIAGEN N.V. (QGEN - Free Report) , Thermo Fisher Scientific Inc. (TMO - Free Report) and Hologic, Inc. (HOLX - Free Report) .

QIAGEN’s long-term earnings growth rate is estimated at 22.3%. It currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Thermo Fisher’s long-term earnings growth rate is estimated at 15%. It currently carries a Zacks Rank #2 (Buy).

Hologic’s long-term earnings growth rate is estimated at 15.5%. The company presently sports a Zacks Rank #1.

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