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

To: Icebrg who wrote (10923)	3/19/2004 3:44:02 PM
From: Icebrg	Respond to of 52153

Dispute flares over gene linked to arthritis drug By Luke Timmerman Seattle Times business reporter Targeted Genetics took a load of intellectual property from Immunex when it spun out a dozen years ago, including one item that became a potential gem — the right to use the gene sequence that made the hit rheumatoid arthritis drug Enbrel. Now the small Seattle biotech has begun a human test on its variation of a gene-based therapy for rheumatoid arthritis. But Amgen, the giant biotech that bought Immunex — and Enbrel — two years ago, has told the small company it doesn't have a license to push its treatment ahead. Targeted Genetics disclosed the dispute, which had been simmering with Immunex for years, in a filing with the Securities and Exchange Commission. The company says it considers the matter more of a discussion than a dispute but that it is becoming more serious because Targeted Genetics' treatment is moving from the lab into human tests. A spokeswoman for Amgen had no comment. "This product is something we want to move forward in development, and do it quickly, and we want to put any questions aside," said Susan Robinson, Targeted Genetics vice president of business development. Chief Financial Officer Todd Simpson says the company believes it has the right to develop its therapy because it acquired the rights in exchange for shares of its stock. Targeted Genetics' method injects tiny viruses loaded with a gene sequence into inflamed joints. There the genes create a protein that soaks up excess inflammatory cells. Amgen's approach turns the same gene sequence into a protein solution that is injected and travels through the body. Analysts say Targeted Genetics' treatment could be an intriguing alternative or a supplemental tool. The market is large — about 750,000 Americans are believed to have moderate to severe rheumatoid arthritis, and more than 100,000 take Enbrel, which costs $1,000 a month. The market for such drugs is expected to reach $7 billion a year by 2011, says the trade publication Med Ad News. In animals monitored for 30 days after getting a shot, Targeted found that one shot into an inflamed joint could reduce inflammation there and in other joints for as long as the animals were studied. If that effect is shown in humans, it could mean fewer shots for patients getting twice-weekly or weekly doses of Enbrel. The experimental treatment could be used in combination with Enbrel. Dr. Philip Mease, chief of the rheumatology clinical research division of Swedish Hospital Medical Center in Seattle, said that 25 to 40 percent of patients have one or two "stubborn" joints that remain stiff or tender after Enbrel treatment. Mease worked on the trials for Enbrel and is now a lead clinical investigator on Targeted Genetics' trial. It is expected to take about a year to enroll 32 patients at eight sites in the U.S. and Canada. The trial is primarily designed to measure safety. seattletimes.nwsource.com