LONDON (AFX) - Antisoma PLC announced that R1549, its lead drug formerly known as Pemtumomab, has failed to meet its primary endpoint in a Phase III study in ovarian cancer.

The group, which specialises in the development of novel products for the treatment of cancer, said that the outcome for R1549-treated patients appeared no better than those of patients in the comparative arm of the SMART (Study of Monoclonal Antibody RadioimmunoTherapy) trial.

"Given these findings, it is unlikely that development of R1549 will continue," Antisoma said in a statement today.

The group is co-developing a number of drugs, including R1549, with Swiss pharmaceutical group Roche under the broad strategic alliance formed in November 2002.

"The outcome of this study will have no impact on our growth outlook and we remain committed to our long-term relationship with Antisoma, which is based upon multiple products," William Burns, Head of Roche's Pharmaceuticals Division said.

"Drug development is a high-risk endeavour and such results are not unexpected in the development of novel treatment modalities," he added.

etain.lavelle@afxnews.com

el/bam

Antisoma crashes as cancer drug fails
Published: 08:50 Mon 26 April 2004
By Cliff Feltham, Smaller Companies Correspondent
Email to a friend | Printable Version

Shares in drug developer Antisoma lose more than half their value on news that its keenly awaited treatment for ovarian cancer has failed in late stage trials.

'It is disappointing but not a catastrophe,' said chief executive Glyn Edwards. The market took a more severe view, sending the shares (ASM) 23.5p lower at 21p.


The drug - codenamed R1549 - was tested on more than 420 ovarian cancer sufferers in 17 countries in a joint venture between Antisoma and Swiss pharmaceutical heavyweight Roche.


But the study showed no benefits from the drug and a decision was taken to terminate the phase III trials. Edwards declined to say how much Antisoma had spent on the project but it is understood to run into many millions.


But he insisted the company's cash position remains strong. There was 39 million in the bank at the end of March. The company is currently spending around 1 million a month.


Edwards insisted that failure of R1549 would not jeopardise its relationship with Roche. The two firms entered into an alliance in November 2002 to provide Roche with access to Antisoma's portfolio of cancer compounds. They include a treatment for solid tumours and breast cancer but both at a much earlier stage of development than R1549.


William Burns, head of Roche's pharmaceutical division, said: 'We remain committed to our long-term relationship with Antisoma which is based upon multiple products.' As part of the tie up Roche took a stake in Antisoma which now stands at 8%.


Antisoma has spent around 25 million on drug research. Like all developers, it remains high risk as far as investors are concerned. The treatment R1549 was originally developed at the Imperial Cancer Research Fund in London. Antisoma licensed the drug in 1996.


Edwards said: 'We are obviously disappointed by the result but will now have the opportunity to focus all our efforts on the strong, diverse and rapidly advancing pipeline of other drugs we have in development.'

2004 Citywire
Related Articles
11:47 Wed 12 Nov 2003
Losses narrow at Antisoma

Sam Fazeli, an industry analyst at Nomura, slashed his "fair value" estimate for Antisom's shares to 39 pence from 118p and said disappointment over the failure of R1549 was likely to push the stock well below that level.

But he retained a "buy" investment rating on the shares, noting that at current prices the market was valuing the rest of Antisoma's drugs pipeline at just 7.5p per share, when stripping out cash reserves.

This pipeline includes three drugs in clinical trials and the firm also raised 15.2 million pounds ($27 million) in December, partly to buy in other experimental medicines.


http://www.reuters.co.uk/newsArticle.jhtml?type=topNews&storyID=4936671

you may be right azhar, theres been a lot of buying compared to selling in the last hour.....

... but the selling continues. think we'll have to wait for this to dry up before any price rise (which is likely, so IMHO this is one to keep an eye on)

hmmm still more sells than buys today but the buys have been catching up. most sells seem to be small amounts (up to 10,000) wheres as the buys are large (250,000) i suspect this is an indication that the drop may be bottoming out and there are some bigger players getting ready for the rebound.

The F.T comment today p22 says that the cash aloan is worth 15p a share and with the ongoing relationship with Roche the strong cash position it may be time to pick up Antisoma on the cheap.
I agree I have just Added again.

Tbrooking66, in the end the Buys well outweighed the Sells. Most of the unknowns were also buys. The biger trades were much bigger than 250,00

16:30 400,000
16:31: 360,000
16:09 1,450,000
16:07 782,741

I agree wih you that the bigger players have started piling in and waiting for a rebound.

FT Comment

Exactly as predicted, Antisoma's shares halved on the delivery of bad news. If it had been good, they would have doubled. This is an almost perfect illustration of the binary risks inherent in biotech investment - it often feels no different to walking into a casino and sticking everything on red. Antisoma's cash alone is worth about 15p per share, which values the rest of the company at just 4p per share in the wake of yesterday's collapse. This is perhaps unfair in terms of the ongoing relationship with Roche, the strong cash position and three drugs in early-stage human trials. But investors will take a while to get over this particular reality check. Ironically, if you buy into the long-term potential of biotech drugs, now might be the time to pick up Antisoma on the cheap.

28 April 2004

Antisoma plc

Notification of Results

Antisoma plc will be announcing its Q3 results for the period ended 31 March
2004 on Thursday 13 May 2004.


For further information contact:
Ben Atwell, Financial Dynamics, Tel: 0207 831 3113



This information is provided by RNS
The company news service from the London Stock Exchange

just in case any ones interested......

FRONT PAGE - COMPANIES & MARKETS: Pfizer to make up for patent losses with biotech purchases
By Geoff Dyer in London and Christopher Bowe in New York
Financial Times; May 03, 2004



Pfizer will acquire more biotechnology companies to fill out its pipeline of new medicines as it nears a point when several important drugs are expected to lose patent protection.

Hank McKinnell, chairman of the biggest pharmaceuticals group, said he preferred to purchase biotechnology companies, shifting from a strategy focused on licensing in marketing rights to promising experimental drugs.

"The one change you will see in this area is us doing a lot more acquisitions," he said.

His comments underline the tightening relationship between the two industries, with pharmaceuticals companies desperate for new products and many biotechnology groups short of cash.

Pfizer's strategy is aimed at preparing it for the 2006-07 period when it could lose protection on its patents for Norvasc, the hypertension drug, antidepressant Zoloft, antibiotic Zithromax and Zyrtec, an antihistamine.

Most biotechnology groups want licensing deals but Mr McKinnell believes the tough climate for small research-based companies will lead to agreements becoming acquisitions.

Pfizer indicated its intentions at the end of last year when it acquired Esperion, a US biotechnology company, for $1.3bn.

Mr McKinnell said many biotechnology companies had scaled back their ambitions, in part due to tougher conditions in capital markets but also because of the enormous risks involved in biomedical research.

"There was a time when 300 companies in the biotechnology space all wanted to grow up and be the next Pfizer, but I think they now recognise that this is pretty unlikely," he said. "Some of these companies have decided that, rather than follow their own strategy of growing the business or partnering with someone like us, they would rather be acquired at this point."

In the case of Esperion, he said, the two companies formed a partnership over its experimental cholesterol treatment based on high-density lipoprotein, or so-called good cholesterol, which could provide a boost to Pfizer's cardiovascular business.

Mr McKinnell said: "They realised that the probability of them partnering with us on this discovery and then going off and doing a whole new discovery was pretty remote."

Industry executives have taken note of the rising prices of product licensing deals and the falls in the valuations of biotechnology companies.

Also, while a handful of biotechnology companies have become highly profitable, investors have become more sceptical about the prospects for smaller companies, which has made financing harder to find.

Turnover has doubled and the loss is down these shares are now very cheap at 16p

Up over 20% from their recent low of 15p. Does that count as a rebound?

It's up today :)

Got in on this one this morning at 8.25 oversold IMHO Wont keep for long though

Going up, now at 10.25

Going downnow at 8p.got any paint left?

Got out yesterday Tabby with a small profit. I see the dog stock is down again today
I may join you for a punt on the dog when it gets to 6p

Why am I not surprised you got out yesterday at a small profit?do you beat yourself at cards as well?as they say at a corrida de toros.thats a lot of bullshit!

Got in on this one this morning at 8.25 oversold IMHO Wont keep for long though

What part of wont keep for long do you not understand. This from a person who against all supports the dog of the year.

As our resident expert on BLNX do you think I should get in on the dog when it gets to SP 6p

So let us get this straightyou got in yesterday at 8p ...claiming the stock was oversoldit ended the day at 8p.so to concluded 8p was good value and 8p wasnt.I get it you could run 26 miles with ease but dont do marathons because the last couple of hundred yards takes it out of you.