ASM29 Mar 2010 14:46
HOPES NOW PINNED ON LEUKAEMIA DRUGS
ASA404 was one of two key products from Antisoma in final Phase III trials, the other being leukaemia treatment AS1413, which Edwards said would remain the focus of investment, alongside another leukaemia drug in Phase II called AS1411.
"Those are the two priority programmes. We will make cost savings elsewhere, but we have enough cash to get comfortably beyond the Phase III results for 1413 (in late 2010 or early 2011) and Phase II results for 1411 (in early 2011)," he said.
Antisoma had unaudited cash and short-term investments of 45.1 million pounds ($67.41 million) at the end of February 2010, which Edwards said was enough to fund it through 2011, provided it made savings. Cutbacks could include job losses, he added.
Antisoma would also be "much more pragmatic" about striking fresh licensing deals to bring in cash from its unpartnered programmes, including AS1413.
"All our remaining programmes are not partnered at this point, so we have plenty of time to talk to people," Edwards said. "We're not considering any equity fundraising."
The failure of the so-called ATTRACT-1 study was particularly disappointing given the encouraging Phase II data reported in the same setting, he said.
Samir Devani of Nomura Code, who reduced his rating for Antisoma to "neutral" from "buy", said ASA404 had represented approximately 80 percent of his risk-adjusted net present value for the company. He now values the stock at 12 pence a share.
Novartis shares were down 1 percent, only slightly underperforming the European sector .SXDP, reflecting the relatively small role of ASA404 in its large drug pipeline.
"Novartis has a very robust pipeline in oncology and we will continue to drive research and development in oncology and we have plenty of other compounds in the pipeline," said Novartis spokesman Eric Althoff. ($1=.6690 Pound) (Additional reporting by Katie Reid in Zurich; Editing by Sharon Lindores and Rupert Winchester)
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