Maybe, just maybe, one day *eureka* will be investors respond when they discover REGN!
Miljenko
Article from Money Talks:
Headline: Regeneron Pharmaceuticals: Growing Up
You can't say that biotech stocks aren't exciting. Take EntreMed (NASDAQ:ENMD) as an example. In May, the stock rose like a rocket and blew off the charts when the National Cancer Institute was reported in a page-one story as saying that the angiogenetic proteins, angiostatin and endostatin, being developed by EntreMed, were "two of the most promising weapons against cancer." The hope for them was to block off the flow of nourishing blood to cancerous tumors to literally starve them to death. Last week, the National Cancer Institute was quoted as saying that studies using either the mouse or human forms of endostatin have not produced the marked regression of these tumors in mice that had been previously
reported. EntreMed stock dropped 24% in a day. The company issued a
response, but the damage was done.
What does this have to do with Regeneron (NASDAQ:REGN)? The trouble with performance fireworks like that of EntreMed is that it can obscure important progress by other companies working in the same area. Take Regeneron, a company that uses its expertise in protein growth factors, their receptors, and their mechanisms of action to discover and develop protein-based and small molecule drugs, including angiogenetics. First, some background.
All the tissues of the body depend on a robust blood supply for
nourishment and sustenance. Disruption of the normal blood supply, for
example, can lead to an oxygen-starved heart at risk for myocardial
infarction, or to painful and ischemic limbs that can cause suffering in diabetics. Lack of blood flow can also prevent wound healing, leading to ulcerations and infections. Restoring or growing blood vessels in such settings could have therapeutic benefit. Before Regeneron's discovery of the Angiopoietin family, of which Ang1 is a member, only one other family of growth factors specific for blood vessels had been defined and characterized. This family, known as the Vascular Endothelial Growth Factor (VEGF) family, works via receptors specifically expressed on blood vessel cells. Ang1 appears to work in tandem with VEGF to help regulate blood vessel growth.
In the Oct. 16 issue of Science, scientists from Regeneron
Pharmaceuticals reported that Angiopoietin-1 (Ang1) promotes blood vessel formation in animals and thus may have therapeutic application in promoting angiogenesis. Research has shown that Ang1, a naturally
occurring protein, is required for normal blood vessel formation in the body. The Science article extends this finding by demonstrating that genetically providing additional Ang1 can promote enhanced blood vessel growth in animals. This result suggests the possible therapeutic use of Ang1 in ischemic diseases such as coronary artery disease or peripheral vascular disease that can accompany diabetes. The Ang1 results are more striking than those seen in previous studies with Vascular Endothelial Growth Factor and did not show problems of vessel hyperpermeability and the fluid accumulation seen with VEGF. Thus the company is excited about the possibility that Ang1, either alone or in combination with VEGF, can be useful in promoting therapeutically beneficial blood vessel formation.
The company has also reported recently on the cloning of another member of the Angiopoietin family, Ang2, which appears to be a negative regulator, i.e., a blocker, of angiogenesis. They commented that, "there are a variety of settings in which blocking blood vessel growth may be desirable. For example, as observed earlier, blocking blood supply can kill a tumor by starvation. Curbing the abnormal blood vessel growth that coats the retina in diabetic retinopathy may also prove beneficial.
"The cloning of both positive and negative regulators of angiogenesis provides for interesting therapeutic approaches for potential use in clinical situations in which it may be desirable either to promote or block blood vessel growth, such as in ischemic heart disease, diabetic muscular ischemia, diabetic retinopathy, and cancer. We are excited about the possibility that Ang1, the natural agonist (receptor activator), can be very useful in promoting blood vessel formation. Ang2, the antagonist, may have interesting reciprocal actions."
The company's growth factor research explorations range well beyond agiongenetics to the treatment of obesity and neurological, inflammatory, and muscle diseases, as well as abnormal bone growth, cancer. For a more complete treatment of the company research focus, try its home page at www.regeneron.com.
Another noteworthy element is the importance of the angiogenetic area to strategic partners. Regeneron is collaborating with Procter & Gamble Co. in the research and development of the Angiopoietins. In May 1997, Regeneron and Procter & Gamble entered into a broad, 10-year collaboration agreement, pursuant to which Procter & Gamble will provide up to $155 million during the first five years to support Regeneron and its research programs, including the company's angiogenesis program. Any products resulting from this collaboration are expected to be commercialized jointly worldwide and the profits shared equally.
Regeneron also has as collaborators Sumitomo and Amgen-Regeneron
Partners. Regeneron and Sumitomo have been working together in the
development of Brain Derived Neurotropic Factor, BDNF, in Japan since
1994, initially for the treatment of amyotrophic lateral sclerosis (ALS, commonly known as Lou Gehrig's disease). In March 1998, Sumitomo initiated a Phase I clinical trial in Japan to assess the safety of BDNF delivered subcutaneously to normal volunteers. In August 1998, Sumitomo and Regeneron signed a license agreement for the development of BDNF in Japan. Sumitomo will also pay a royalty on sales of BDNF in Japan.
In the U.S., Amgen-Regeneron Partners, a partnership equally owned by Regeneron and Amgen Inc. (NASDAQ:AMGN), is currently developing BDNF for potential use in treating ALS through two routes of administration: intrathecal (infusion into the spinal fluid through an implanted pump) and subcutaneous (injection under the skin).
Regeneron is another biotech company whose stock has suffered a 50% decline from the May high to the September low. Why? Why ask? The bear performance of the biotech group defies comprehension. Fortunately, there has been a modest recovery from Regeneron's September low.
Despite the distractions supplied by the market, growth factor research is maturing, and Regeneron appears to be well worth watching, particularly in the angiogenetics field.
Disclaimer: This report is for informational purposes only and in no way should be taken as a recommendation to purchase or sell the securities mentioned in this report. Stocks rise and fall due to the normal fluctuations of the market, as well as in accordance with unforeseen events and news announcements. Any investments made in any securities mentioned in these reports are the sole liability of the investor. |
