So much for Raptiva. Xoma might be the unluckiest biotech in existence. What is the record for most failed clinical trials in a row anyway?
cbs.marketwatch.com{E6DB15D7-BB8F-48E2-B354-EA6CE0FB876B}&siteid=go2net&dist=go2net&archive=true
Xoma hit by Raptiva's arthritis setback
Drug expected to win FDA approval as psoriasis therapy
By Ted Griffith, CBS.MarketWatch.com
Last Update: 12:57 PM ET May 12, 2003
BERKELEY, Calif. (CBS.MW) -- Shares of Xoma Ltd. tumbled as much as 17 percent Monday after the small biotech firm and partner Genentech said they had stopped testing of an experimental drug because it failed to help rheumatoid arthritis patients.
Shares of Xoma (XOMA: news, chart, profile) lost 74 cents to $4.75 in recent dealings, while Genentech (DNA: news, chart, profile) shares rose 67 cents to $37.72. Genentech, as the No. 2 biotechnology firm in the world, isn't as dependent on Raptiva as the smaller Xoma is.
The two companies said they decided to stop mid-stage testing of their drug, Raptiva, because it seemed to have "no overall net clinical benefit" for patients with moderate to severe rheumatoid arthritis. Doctors involved with the study have been told to stop treating rheumatoid arthritis patients with Raptiva, the companies said.
Genentech and Xoma have primarily focused on developing Raptiva as a treatment for the skin disease psoriasis. Analysts expect Raptiva to be approved for psoriasis late this year.
Psoriasis and rheumatoid arthritis are similar in that they are both believed to be caused when the body's immune system goes haywire and attacks healthy tissue.
A number of companies are exploring whether a treatment that's effective against one of the autoimmune conditions might be effective against the other. For example, analysts consider Enbrel -- Amgen's (AMGN: news, chart, profile) rheumatoid arthritis therapy -- to be a highly promising treatment for psoriasis. |
