Regeneron Feels Cancer Setback (REGN)
Regeneron Pharmaceuticals, Inc. (NASDAQ: REGN) has provided an update on its clinical development program for aflibercept, which includes results from a Phase 2 study in advanced ovarian cancer. The drug is under development with Sanofi-Aventis (NYSE: SNY).
Unfortunately, this study failed to meet its primary endpoint of achieving a base of 5% response based on certain criteria in two dosage strengths. These results were from an independent review committee. The higher dosage of aflibercept achieved a 4.5% response, but the lower dose generated a mere 0.9% response.
The companies are still evaluating their next steps to take in the advanced ovarian cancer indication, although this response rate is low enough that you have to wonder if the entire program for this indication will be shelved so it can concentrate on the other indications.
The companies are still evaluating aflibercept as a chemotherapy combination potential treatment in four late-stage studies to evaluate the treatment of prostate, pancreatic, colorectal, and non-small cell lung cancers.
Regeneron still has more than ample cash and liquidity to keep funding its existing trials and existing programs. With $826 million total liquidity as of last quarter (cash, equivalents, long-term investments) and total liabilities of $470 million, the company even has enough dough to look for new opportunities.
Shares of Regeneron are down 14% at $18.40 and the 52-week trading range is $13.55 to $25.25. If this was the only program and if there was less liquidity, the drop would have been far worse.
Jon Ogg
May 21, 2008