Biotech Values

[DewDiligence]

ASA404 Fails in Ovarian Cancer

[The main indication for this anti-angio drug from Antisoma and NVS is NSCLC; it also showed decent results in HRPC (#msg-20145667). However, the results in ovarian cancer were a complete bust, which lowers the potential milestones and royalties that Antisoma can achieve in its high-profile deal with NVS (#msg-18920108).]

http://www.reuters.com/article/topNews/idUKL1262110220070712?rpc=44

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Thu Jul 12, 2007 4:02AM EDT
By Ben Hirschler

LONDON, July 12 (Reuters) - An experimental cancer drug from Britain's Antisoma Plc (ASM.L) and Swiss-based Novartis AG has failed in a mid-stage clinical trial for ovarian cancer, lopping 17 percent off Antisoma's share price.

Antisoma said on Thursday that new Phase II data showed ASA404 did not increase the median time to tumour progression when added to chemotherapy. Slightly more women died in the ASA404 arm of the study than in the control group but the majority in both were still alive after one year, so no median survival values were determined. [The word “slightly” is too mild here, IMO: 1-year survival was 74% in the ASA404 arm and 92% in the control arm.]

"Based on these data, development in ovarian cancer will not be a priority," Antisoma said in a statement. [Classic British understatement!]

ASA404, which Antisoma licensed to Novartis in April 2007, is being tested in several cancer types. Previous trials showed it did increase median survival when added to chemotherapy in non-small cell lung cancer and Antisoma Chief Executive Glyn Edwards said he remained optimistic about the overall programme.

"Our ovarian cancer trial has not produced positive results like those seen with ASA404 in lung cancer. More broadly, we're very pleased with the progress made by Novartis to date with ASA404 in lung cancer and look forward to working with them to fully evaluate the drug in other cancers," he said.

David Epstein, head of oncology at Novartis, said in April he believed the product had billion-dollar sales potential. Investors, however, were unnerved by the setback, and Antisoma shares fell 17.2 percent in early trade to 36 pence. Novartis dipped 0.1 percent to 66.65 Swiss francs, in line with the overall Swiss market.

Antisoma received an upfront payment of $75 million from Novartis for ASA404 in April and could receive as much as $890 million if a series of milestones are met and the Basel-based firm acquires rights to a second related drug [#msg-18920108].

The medicine, which was previously known as AS1404, has had a chequered history. Novartis's cross-town rival Roche Holding AG, which has a broad drug-discovery alliance with Antisoma, announced a year ago it was dropping AS1404, following initial clinical trial results that failed to live up to early expectations.

ASA404 is due to enter final Phase III trials in lung cancer next year and, if successful, could be the first in a new type of anti-cancer drugs designed to disrupt the flow of blood to tumours. It works in a different way to Roche's established medicine Avastin, which also starves tumour cells of blood, and is expected to help the 25 to 40 percent of patients with squamous non-small cell lung cancer (NSCLC) who cannot take Avastin.
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