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Biotech / Medical : HuMAB companies -- Ignore unavailable to you. Want to Upgrade?

To: nigel bates who wrote (404)	9/25/2002 9:58:25 AM
From: Jibacoa	Respond to of 1022

Genmab shares more than 50% down after the company suspended the development of its drug for treatment of rheumatoid arthritis. COPENHAGEN, Sept 25 (Reuters) - Shares in Danish biotech firm Genmab more than halved to hit an all-time low on Wednesday after the company suspended the development of its drug for treatment of rheumatoid arthritis. The failure is the latest in a string of disappointments in the European biotechnology sector, where shares hit record heights in 2000 but have crashed back to earth following a string of negative clinical trial results and a flight from risk. Genmab, one of Scandinavia's leading biotecnology companies, said the compound, codenamed HuMax-CD4, was found not to be effective in clinical Phase II studies of 155 patients. "Following these results, Genmab has decided to wind down its development programme for rheumatoid arthritis," the company said in a statement. "These are very disappointing results considering the promising data announced from the initial Phase I/II studies," UBS Warburg analysts said in a note. Merrill Lynch's analyst Erica Whittaker reduced her Genmab rating to 'sell' from 'reduce' following the news. "The problem as I see it is that this means we are not going to get any meaningful data from the company on any other projects until early 2004 at the earliest," she told Reuters. ABN AMRO and UBS Warburg both put their ratings on Genmab under review following the setback. At 1047 GMT Genmab shares were 50 crowns or 55 percent down at 42 crowns from Tuesday's close of 92 crowns. Genmab shares made their debut on the Copenhagen bourse in late 2000 at 180 crowns per share. PSORIASIS DRUG NEXT IN PIPELINE The arthritis drug was expected to be the first of Genmab's drug candidates to hit the market and the company earlier foresaw revenues from the compound in late 2004. "We still have this antibody for treatment of psoriasis in clinical Phase IIb, which means we would be looking for a market launch of that some time in 2006/07," Genmab head of investor relations Rachel Gravesen told Reuters. "That's the furthest along at the moment." Genmab still hopes to enter Phase II trials of its HuMax-IL15 compound for rheumatoid arthritis, which it is developing in collaboration with U.S. biotech firm Amgen (NasdaqNM:AMGN - News). "We fully expect to put at least one more product into clinic this year, if not two," Graversen said. Hu-MaxInflam, against inflammatory diseases, is almost certain to be taken into clinical Phase I before end-2002, she said, adding that Genmab's strategy of putting two new products into clinical trials every year was unaffected by the arthritis disappointment. Other high-profile biotech setbacks this year include poor trial results from Celltech Group Plc's (London:CCH.L - News) bowel treatment Humicade, the failure of MediGene AG's (XETRA:MDGGn.DE - News) heart drug Etomoxir and the rejection of Oxford GlycoSciences Plc's (London:OGS.L - News) Gaucher disease medicine Zavesca. The European biotech industry boasts only a handful of successful drugs against the dozens marketed by U.S. firms, and has had a torrid time since the bursting of the technology bubble, with investors ditching the promise of future riches in favour of companies which can deliver a solid return now. Genmab is creating and developing fully human antibodies for the treatment of life-threatening and debilitating diseases, including cancer, rheumatoid arthritis, psoriasis and other inflammatory conditions. (Additional reporting by Ben Hirschler in London)