And the day following BIIB/DNA ---->News flow on drugs keeps Roche----->( Genetech's parent ! ).... certificates firm
Monday October 27, 6:03 am ET
ZURICH, Oct 27 (Reuters) - Clinical trial results showing that Roche Holding AG's (ROG.VX) blockbuster cancer drug may also help treat arthritis supported Roche stock on Monday by fanning expectations for its development pipeline.
Roche certificates could get another boost soon when U.S. regulators approve Raptiva, a psoriasis drug developed by Roche's U.S. biotech unit Genentech Inc (NYSE:DNA - News), adding another arrow to Roche's growing quiver of pharmaceuticals.
"Roche is maintaining its high valuation for now thanks to strong news flow," Zuercher Kantonalbank analyst Patrick Burgermeister said, maintaining his "market weight" rating.
Roche certificates, which have outperformed the DJ Stoxx European healthcare index (Zurich:^SXDP - News) by around two percent this year, gained 1.2 percent to 110 Swiss francs by 1035 GMT.
Phase II clinical trial results released at the weekend showed that cancer drug MabThera also offers long-term relief to rheumatoid arthritis sufferers.
Patients given just two doses of MabThera continued to show a substantial improvement in symptoms for up to 48 weeks, data presented to the American College of Rheumatology showed.
Previous clinical trials had demonstrated the benefits of the drug lasting 24 weeks, but the fact the effects can be sustained for nearly a year will increase prospects of its use in the new disease area if regulators approve it.
The monoclonal antibody is already one of the world's most successful cancer medicines through its use in the treatment of non-Hodgkin's lymphoma, the most common form of blood cancer.
It is marketed as MabThera in Europe by Roche and as Rituxan in the United States by Genentech, which co-developed the product with IDEC Pharmaceuticals Corp (NasdaqNM:IDPH - News).
Roche has predicted peak annual sales could rise to 4.5 billion Swiss francs ($3.4 billion) in cancer treatment alone from 2.3 billion in 2002.
Analysts gave a cautious welcome to the trial news. Denise Anderson at Bank Julius Baer foresaw the first regulatory approval of Rituxan in rheumatoid arthritis (RA) in 2006. "Depending on the data, RA could add 500 million francs in additional sales" at Roche, she said in a research note.
Analysts at another investment bank said the MabThera trial data "looks positive from an efficacy standpoint, although the full safety profile is not clear from the release, in our view".
They said potential side effects would be a main issue to watch as the drug is not used for long periods to treat cancer.
Separately, Roche said mid-stage clinical trials had shown the MRA drug it is developing with Chugai Pharmaceutical Co Ltd (Tokyo:4519.T - News) showed promise in treating a form of RA in children.
Rheumatoid arthritis affects an estimated one percent of the population. Two-thirds of patients are women. The body's overactive immune system attacks joints, causing crippling pain.
Roche certificates have risen some 14 percent this year as the market rewards its ability to turn a weak product pipeline into one of the drug industry's more robust line-ups.
"We clearly had a period of weakness in the mid-1990s, but that has now been overcome," Chairman and Chief Executive Franz Humer told the NZZ am Sonntag Sunday newspaper.
(Additional reporting by Ben Hirschler in London) |
