By Ben Hirschler, European Pharmaceuticals Correspondent
LONDON (Reuters) - Biotechnology company Oxford GlycoSciences (LSE: OGS.L - news) says its first drug, Vevesca, which is expected to reach the market next year, has proved effective in treating patients for up to two years.
The medicine for Gaucher disease, a rare genetic disorder in which the body fails to break down fat, successfully reduced liver and spleen size in 14 patients who took the drug for 24 months.
Proving long-term efficacy and safety is crucial since Vevesca will be marketed as a life-long treatment for the rare disease. UBS Warburg said the data, presented alongside first-half financial results showing further losses, could help Vevesca win approval from the U.S. Food and Drug Administration.
The only current treatment for Gaucher is Genzyme's injectable Cerezyme product, which is the world's most expensive medicine at an annual cost per patient of around $175,000. Warburg expects Vevesca -- which is a pill -- to sell for around $50,000, generating sales of $104 million by 2005.
Chief Scientific Officer Raj Parekh told Reuters the Oxford-based firm planned to sell the drug on its own, using a specialist worldwide sales force of less than 50.
FILLING THE PIPELINE
Vevesca, which could reach the market in mid-2002, holds the near-term key to financial prospects for Oxford Glyco, which reported a net loss in the six months to June 30 of 7.2 million pounds, against 7.0 million a year earlier, on turnover of 8.7 million against 4.5 million.
The company -- best known as a specialist in proteomics, or the study of links between genes, proteins and disease -- plans to follow up with the launch of other drugs as its shifts its focus increasingly towards drug development.
Parekh said Oxford Glyco would use part of its 196 million pounds cash pile, boosted by a 170 million fundraising last year, to buy in new products already in clinical trials.
"With the prices of many interesting companies where they are at the moment, we feel in a fairly good position to make strategic acquisitions of products," he said.
Oxford Glyco already has drug discovery alliances with U.S. biotech firms Medarex and Neogenesis but this work is at an early stage, leaving a "gap" in the company's pipeline after the launch of Vevesca.
"INSULATED" FROM MARCONI CRISIS
Oxford Glyco said its Confirmant joint venture with Marconi remained on-track, despite the financial problems engulfing the telecommunications equipment group.
"We're confident that Confirmant, in practice, is insulated from the problems at Marconi and should there be any issue over hosting of broad band solutions (which Marconi is contributing) it is quite capable of accessing those from third parties," Parekh said.
He reiterated an earlier forecast that Confirmant would generate revenues of up to 22.5 million pounds for Oxford Glyco over the next three years... |
