2nd UPDATE: Genentech, Roche: Tarceva-Avastin Combo Works
February 03 2009 - 9:38AM
Dow Jones News
Genentech Inc. (DNA) and Roche Holding AG (ROG.VX) said a study
examining the potential benefits of combining cancer drugs Tarceva
and Avastin was stopped early because the treatment had clear
benefits for patients.
The companies said a late-stage trial found that people with
lung cancer who received the combination treatment lived longer
without their cancer getting worse, compared with those who
received Avastin alone.
Genentech, based in South San Francisco, Calif., and Roche,
based in Basel, said this was the second late-stage study that
demonstrated the benefits of daily pill Tarceva as an initial
maintenance therapy, following inital treatment with Avastin.
Genentech sells both drugs in the U.S., while Roche has the right
to sell them in other markets. Avastin is one of the companies'
fastest-growing products.
Shares of Genentech and OSI Pharmaceuticals Inc . (OSIP), which
are selling Tarceva in the U.S. rose in after-hours trading Monday
after Genentech gave details of the findings.
Roche shares, by contrast, declined, as market participants
focused on Roche's plan to take full control of Genentech, which
developed many of the successful cancer drugs that are driving
Roche's growth.
Last Friday, Roche launched a hostile bid to buy the roughly 44%
of the U.S. biotech company that it doesn't already own, after its
earlier friendly offer was rejected.
At 1350 GMT, Roche shares were CHF1.60, or 1%, lower at
CHF161.90, in a higher Swiss market, with the broader European
healthcare sector also trading higher.
Analysts said the new data could help extending the use of
Tarceva. The drug is currently prescribed only to patients who
failed other treatment. Avastin already has permission to be used
as initial therapy.
Deutsche Bank analysts said they currently expect Tarceva to
eventually generate annual sales from use as initial treatment of
CHF200 million, but this number could rise to up to CHF1 billion,
if the drug becomes more widely used. Total sales of Tarceva
amounted to CHF1.06 billion in 2007. More current numbers will be
released Wednesday, along with Roche's full-year earnings.
Company Web Site: http://www.roche.com
-By Anita Greil, Dow Jones Newswires; +41-43-4438044;
anita.greil@dowjones.com
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