Genentech: Cancer Drug Extends Life [ Drug News Board ] [ Home ] Posted by Reuters on May 20, 2003 at 06:44:44: Monday May 19, 4:09 pm ET By Toni Clarke NEW YORK (Reuters) - Genentech Inc. (NYSE:DNA - News) said on Monday its experimental colon cancer drug, Avastin, extends life far longer than expected, potentially marking a dramatic breakthrough in cancer treatment. Results of a late-stage trial show the drug, which slows tumor growth by cutting the supply of blood and oxygen, improved survival when used in combination with chemotherapy. The news surprised analysts and scientists, who had become skeptical of the approach, known as anti-angiogenisis, after the drug failed to prove effective in treating breast cancer. If approved, Avastin could generate as much as $2 billion in revenue, analysts said. Genentech, whose revenue in 2002 was $2.7 billion, is also testing the drug to treat lung cancer and kidney cancer. Shares of Genentech, which makes the top-selling cancer drugs Rituxan and Herceptin (News - Websites), rose 39 percent, or $14.74, to $52.65 in early afternoon trading on the New York Stock Exchange (News - Websites), their highest since January 2002. "Showing a survival benefit is very rare," said Meirav Chovav, an analyst at UBS Warburg (News - Websites). "This is going to transform the treatment of solid tumors, and it's obviously going to transform Genentech." Colon cancer is the second-leading cause of cancer death in the United States. An estimated 147,500 new cases will be diagnosed in 2003, the company said. Patients on average live 14 months from the time of diagnosis. Avastin is the first of a new class of drugs to treat cancer by inhibiting a protein known as vascular endothelial growth factor, or VEGF, which plays an important role in stimulating the growth of new blood vessels to tumors. Unlike chemotherapy, which kills cancer cells but also kills healthy cells, Avastin is designed as a smart-bomb that targets only those cells involved in the cancer. "This will give a huge boost to the anti-angiogenisis field, which many scientific journals have been questioning lately," said Sapna Srivastava, an analyst at ThinkEquity Partners. Researchers have been attempting to develop anti- angiogenisis drugs for 30 years and the race to be the first to bring a product to market has been one of the most aggressive in the drug industry. There have been seven prominent failures of angiogenisis drugs in recent years, yet 65 more are currently in clinical trials, according to William Li, medical director of the Angiogenisis Foundation, a non-profit organization designed to promote research into the field. Of the eight experimental drugs that specifically target VEGF, the most advanced is a kidney and lung cancer drug from Canada's Aeterna Laboratories Inc. (Toronto:AEL.TO - News; Nasdaq:AEL - News) called Neovastat and a colon cancer drug from Novartis AG called PTK 787. The Novartis (NOVZn.VX) drug is several years behind Avastin. "If approved, Avastin will be the flagship of an entire new fleet," said Li. Genentech said the main side effect of Avastin is an increase in hypertension, or high blood pressure. The company said there is also an increase in tearing of the gastrointestinal tract. The company said this is uncommon. Detailed results of Genentech's trial, the last before it applies for marketing approval, will be presented at the annual meeting of the American Society of Clinical Oncology beginning May 31. Genentech said it met the main goal of the trial, which analysts said is likely to have been an extension of life by about two months. Since the results are beyond Genentech's expectations, analysts said the drug could extend life by about four months. "What kind of a step forward is this for human medicine? It's big," said Craig West, an analyst at A.G. Edwards, who nonetheless downgraded Genentech's stock, saying the company will have to spend substantially to launch the drug. "We have to see the actual data before this can be declared a huge success," he said. "The devil is always in the details." If approved, Roche (ROCZg.VX), which holds a majority stake in Genentech, will likely market the drug outside the United States. The Swiss drug company has the option to acquire the rights once the late-stage trial results are released. Analysts said Avastin could be on the market by 2004.