bob, I think that a brief explanation of the molecular biology might help put yesterday's press release in proper context. Panretin is 9-cis retinoic acid, a new hormone discovered by LGND scientists. It reacts with both types of retinoic acid receptors (RXRs and RARs) of which there at least 6 subtypes. Because it binds to all 6 receptors, the commercial product was named PANretin. Because it reacts with everything, it has broad applications. However, the broad binding activity also has the potential of producing side effects at higher concentrations. To define the most promising applications, LGND starts several trials in diverse populations. The product works through natural processes (induction of differentiation through RARs and apoptosis through RXRs) and is therefore relatively safe. However, it is not expected to work for all indications. If it did, LGND would not have to develop the various analogs which show a greater receptor specificity (such as Targretin, ALRT268, LG100754, and a host of additional retinoids).
Yesterday's press release was designed to update the market on which indications were being persued and which were being halted. Even on halted trials, there was a small patient population that showed benefit, although the benefit was more in the area of disease stabilization than tumor reduction. LGND and NCI are focusing on Panretin indications that either show a tumor response (KS, APL, etc) or those that were designed to improve other parameters (the immune system for HIV patients).
Its always hard to predict how the street will respond. I didn't find anything unexpected in the press release, but the street does have a tendancy to focus on the negative, especially short term. In the accompanying release, LGND does indicate that Droloxifene and CP-366,156 are both advancing in clinical trials for osteoporosis and breast cancer and LGND continues to accept royalty payments in the form of LGND stock instead of cash. This move reaffirms their veiw that LGND is cheap at current levels and a confidence in current and future cash positions.
Henry |
