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Biotech / Medical : Ligand (LGND) Breakout! -- Ignore unavailable to you. Want to Upgrade?


To: Andrew H who wrote (12324)12/8/1997 9:20:00 PM
From: Henry Niman  Read Replies (1) | Respond to of 32384
 
Andy, Stan posted this on the SRGN thread. It will be interesting to see how strong the Phase III data is (I thought that the Phase I/II data was OK, but the numbers seemed low - I suspect that the Phase III data would be more robust since they have gone ahead with the application). Sounds like much of the profit goes to LLY (and LGND if they elect to market product). Of course if approval is iffy, LGND can take more cash from LLY and get a bigger royalty on the rexinoid of their choice.

Seragen Submits Biologics License Application to FDA for Cutaneous T-Cell
Lymphoma Biologic Product

HOPKINTON, Mass., Dec. 8 /PRNewswire/ -- Seragen, Inc.
(OTC Bulletin Board: SRGN) announced today that it has submitted a biologics
license application (BLA) to the U.S. Food and Drug Administration (FDA). The
application requests clearance to market Seragen's DAB389IL-2 (Interleukin-2 Fusion
Protein or denileukin diftitox) for the treatment of recurrent or persistent cutaneous
T-cell lymphoma (CTCL) despite prior therapy.
CTCL is a form of non-Hodgkin's lymphoma that manifests initially in the skin. With
time, however, the disease can become systemic, involving the lymph nodes and the
spleen, liver and other organs. CTCL is disfiguring and debilitating; median survival for
late-stage patients with organ or lymph node involvement is less than three years.
Various drugs are used in treating the disease, but no drug is specifically indicated by
the FDA for its treatment.
Seragen's BLA is based on accumulated data from Phase I/II and Phase III clinical
trials of DAB389IL-2 in patients with CTCL who were no longer benefiting from other
therapy. Two additional trials are currently in progress to evaluate the use of the drug in
earlier stage CTCL. The results of the completed Phase III trial will be presented at the
meeting of the American Society of Hematology tomorrow.
"We are delighted to be submitting our first BLA," said Seragen president and chief
technology officer Jean Nichols, Ph.D. "Our Phase III promgram consists of controlled
studies with response measurements that quantify both tumor burden and
symptomatology. The particular Phase III protocol on which this application is based
consists of a randomized, double-blinded evaluation of two dose levels of
DAB389IL-2 in 71 patients. We also include in the application response information
from 35 patients in our earlier Phase I/II CTCL study. Safety information from 206
lymphoma patients, including 168 CTCL
patients (Some of whom are in one of the ongoing trials), is also part of the
application."
Dr. Nichols said that Seragen expects to hear within the next several months whether
the FDA has accepted the BLA for filing. She also said that the company has
requested priority review of the application. In the case of applications for drugs
intended to treat certain life-threatening illnesses, the FDA may choose to accelerate
the review process.
"This is a significant technical milestone for Seragen," said CEO Reed Prior. "I am
proud to be connected with the talented and dedicated team responsible for this
achievement. All of us hope the results will benefit patients with CTCL."
"At the same time, it should be noted that while we have achieved this technical
milestone, streamlined the company, and restructured a number of key corporate
agreements, Seragen continues to face major business challenges," Mr. Prior said.
"Even if the BLA is eventually approved, the CTCL indication for DAB389IL-2
(denileukin diftitox) may not be profitable or even a break-even proposition for us
financially."
"First, CTCL is a relatively small market," Mr. Prior elaborated. "Larger market
opportunities for the product are still in clinical development, and, as yet, no partner
has been identified to support such development. At this point, we are still supporting
an extensive manufacturing infrastructure developed to serve larger markets. Although
we intend to sell the infrastructure pending shareholder approval, we will remain the
primary customer supporting that manufacturing facility for some time."
"Our marketing partner, Eli Lilly and Company, has invested a lot in the development
of DAB389IL-2 and has recently taken over a substantial portion of our obligations to
Ajinomoto," Mr. Prior continued. "Through this partnership, Seragen must manufacture
and provide the product for a transfer price equal to approximately one-fifth of Lilly's
adjusted net sales of DAB389IL-2, with the exact percentage depending on total sales
volume. With the currently projected sales levels for DAB389IL-2, the transfer price
arrangement, the royalties we must pay on our technology licenses, and the
anticipated costs of manufacturing the product, we do not expect these
payments to cover our costs for the foreseeable future."
"We continue," Mr. Prior concluded, "to pursue a wide range of options to address
these and the other financial issues facing the company."
Seragen is a biopharmaceutical company developing a proprietary portfolio
of therapeutic products. The company's unique receptor-active fusion proteins
consist of a toxin fragment genetically fused to a hormone, or growth factor,
that targets specific receptors on the surface of disease-causing cells.
Seragen's current focus is on cancer and dermatology. In addition to the
collaboration with Lilly on the development of DAB389IL-2 (denileukin
diftitox) for CTCL, Seragen is independently conducting clinical trials of the
same molecule for psoriasis. A second product, EGF Fusion Protein, is
currently in a Phase I/II clinical trial for non-small cell lung cancer and in
pre-clinical development in collaboration with United States Surgical
Corporation for restenosis following angioplasty.

Safe Harbor Information
Some of the statements contained in this document are forward-looking,
including statements relating directly or by implication to Seragen's
products, operations, strategic partnerships, financial condition, and ability
to fund its operations. These statements are based on current expectations
and involve a number of uncertainties and risks, including (but not limited
to) Seragen's ability to proceed with successful development, testing, and
licensing of its products, to modify certain existing contractual
arrangements, to enter into additional strategic partnerships and other
collaborative arrangements, and to raise additional capital on satisfactory
terms. For further information, refer to the "Business Outlook" section in
Seragen's Form 10-K as filed with the Securities and Exchange Commission.
Actual results may differ materially from such expectations.

SOURCE Seragen, Inc.

CONTACT: Lora Maurer of Seragen, Inc., 508-435-2331



To: Andrew H who wrote (12324)12/8/1997 9:27:00 PM
From: Arthur Radley  Read Replies (2) | Respond to of 32384
 
Andy,
I think Squetch outlined that it would be for the person that guesses the date that Lgnd breaks above and closes above the 18 3/8 level which is the 52 week high. Technically, we have to wait until after Dec 15th because Richard Berlanger is still eligible for the first contest.
I'm supplying the wine so get those predictions in "all" you faithful LGNDers.



To: Andrew H who wrote (12324)12/8/1997 9:39:00 PM
From: Henry Niman  Read Replies (2) | Respond to of 32384
 
Andy, Here's one of the three articles I was anticipating (it's in Tomorrow's London Financial Times). It looks like the Rezulin problems (GLX's withdrawl in UK) has put a bit of a damper on the diabetes article. LGND is mentioned in a favorable light, but GLX's move has certainly raised a cloud in the UK:

Diabetes: Bitter pill for insulin users

TUESDAY DECEMBER 9 1997

The withdrawal in the UK of a promising diabetes drug is a blow for sufferers
worldwide, Victoria Griffith reports

Glaxo Wellcome's decision to withdraw Troglitazone from the UK market is a
significant blow, not just to sales of the drug, but also to the hopes of diabetes
sufferers worldwide anxious for innovative treatments.

Troglitazone - discovered by Sankyo in Japan and known by the brand names
Noscal there, Rezulin in the US and Romozin in the UK - is one of a new
class of drugs called "insulin sensitisers", that were hailed as a promising
weapon against diabetes before Glaxo's announcement.

"The insulin sensitisers are state-of-the art for this disease," says Camilo
Leslie, professor at the University of Miami's Diabetes Research Institute.
"There is very little else in the pipe- line."

Glaxo Wellcome suspended marketing of Romozin because of a
higher-than-expected incidence of liver malfunction in 147 of 370,000 patients
taking the tablets.

The US Food and Drug Administration has allowed sales in the US to
continue, but has warned users to monitor closely the drug's side-effects.

The pills, administered to 600,000 American patients, have proved
enormously successful since their March approval in the US, where they are
marketed by a division of Warner-Lambert.

Questions about Troglitazone have now thrown a shadow over the entire class
of insulin sensitisers. Researchers and patients had been excited about what
looked like a reasonably full pipeline of new products.

Sugen and Ligand, the US-based biotechnology companies, are working on
insulin sensitisers, with Ligand in phase II clinical trials. Some scientists also
include Glucophage, the Bristol Myers Squibb drug licensed from Lipha, the
French group, and introduced in the US in June, in the category, although the
exact mechanism of that product is unclear.

Rising rates of diabetes in the US have added urgency to the drug
controversy. At the end of October, the Centres for Disease Control in
Atlanta warned that the disease was turning into a national epidemic, with a
record 16m Americans diagnosed.

Higher levels of obesity and an ageing population are thought to be the main
causes. The disappointment over Troglitazone is exacerbated by the recent
suspension of Fenfluramine, the obesity drug popularly known as fen-phen,
which many diabetics were using to control their weight.

Insulin sensitisers present a new way of treating diabetes, because they
address the underlying causes, rather than merely the symptoms of the
disease. Diabetes impairs the body's ability to convert sugar (glucose) to
energy. Insulin is the hormone that normally allows this conversion to take
place.

Traditionally, treatments for the disease have focused on increasing the amount
of insulin in the body. Pills marketed by companies like Hoechst, Novo
Nordisk, Upjohn and Pfizer boost production of the hormone. This makes
sense for those with Type 1 diabetes, an auto-immune disease that strikes
adults and children. In Type 1 diabetes, the body's immune system becomes
confused and begins to destroy its own insulin-producing cells.

It was long believed that Type 2 diabetics, who contract the disease in
adulthood, also suffered from insufficient insulin production. Scientists now
believe, however, that Type 2 patients have normal or even above normal
supplies of the hormone; their bodies simply fail to make proper use of it.
Insulin sensitisers address this problem by making the body more receptive to
the hormone.

Troglitazone, discovered by serendipity before scientists understood much
about the way it works, stimulates specific nuclear receptors in liver, muscle
and fat cells that regulate the production of insulin-responsive genes.

Ligand hopes to improve on the drug by adding another, similar receptor to
the mix. "We believe a two-sided approach will prove even more effective,"
says Andres Negro-Vilar, chief scientific officer of the company.

Insulin sensitisers are not the only diabetes drugs under research. The
biotechnology group Megabios is developing gene therapy approaches to the
disease. At the end of October, researchers at Massachusetts General
Hospital said they had identified a new set of genes responsible for diabetes,
paving the way for more progress. Yet genetic therapy approaches and
treatments based on the MGH discovery are probably at least a decade from
the market.

Researchers have not given up on the insulin sensitisers. "The number of
people with liver complications from the disease in the UK was low," says
Simeon Taylor, head of the diabetes department of the US National Institutes
of Health. "I'm not saying the product should not have been pulled. But it may
turn out to have a side-effect that strikes few patients."

Insulin sensitisers have exhibited unwanted side-effects in the past. Two
promising drugs, Ciglitazone and Pioglitazone, were dropped from research
because of toxicity and neurological defects.

One of the main challenges in fighting diabetes is that it is often not taken
seriously. "It's a chronic disease, which by definition means it is not usually
immediately life-threatening," says Rubin Bressler, a professor of medicine at
the University of Arizona. "Toxicities in drugs to address it are not much
tolerated by regulators or patients."

Hard-to-change lifestyles complicate matters; many diabetics fail to exercise
more and eat fewer sweets, even after diagnosis. Because sufferers may not
feel ill in the disease's early stages, the temptation to delay treatment, or fail to
comply with recommended regimens is strong.

The long-term consequences of diabetes, however, can be dire: blindness,
neurological problems, liver failure and, in a number of cases, death. That, and
the growing incidence of the illness, has turned the search for treatments into a
high-stakes match.