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

To: Henry Niman who wrote (28197)	2/15/1999 8:51:00 AM
From: Arthur Radley	Read Replies (2) \| Respond to of 32384

British Biotech drug disappoints again Third quarter loss narrows but shares plunge By Suzanne Miller, CBS MarketWatch Last Update: 5:30 AM ET Feb 15, 1999 LONDON (CBS.MW) -- British Biotech shares plunged 19 percent Monday after the company admitted that a trial for its key Marimastat drug has in effect failed in its second trial. Today on CBS MarketWatch Telling inflation reports due Japan, Brazil dumping steel, U.S. says American Airlines pilots held in contempt Racetracks go corporate Oshap looks for light in IPO tunnel More top stories... CBS MarketWatch Columns Updated: 2/14/99 3:24:22 PM ET The company divulged the status of its primary drug at the same time it announced that its third quarter loss narrowed 2.7 million pounds to 8.3 million pounds ($13.69 million) from a year ago, helped by a 19 percent cut in research and development spending to 11.4 million. The lower spending reflected lower levels of employment and overhead. Once touted as a potential $1 billion product, British Biotech admitted that it still has more clinical work to do before it can determine the oral anti-cancer drug's most appropriate use. In a statement, the company said it's currently: "assessing the implications of the results of Study 128 for the overall marmimastat development program. The company believes the results of further studies of marimastat will be needed before a complete assessment of the efficacy, tolerability and dose regimen can be made." British Biotech was once considered the biggest potential success story in Europe's biotech industry. But the long delays in getting a successful drug to market have begun trying investors' patience. The company's difficulties also highlight the dangers which can beset biotech companies dependent on one or two core products for their revenue stream -- a reality for most. That's also why so many biotech companies have yet to turn a profit. British Biotech said it is now considering whether or not a further clinical trial of marimastat should be undertaken given the latest results. The shares are down 19 percent, or 5 pence at 21. Suzanne Miller is London bureau chief for CBS Appears that the perils of biotech investing is not only here in the US.