Regeneron, Sanofi Therapy Extends Lives of Colorectal Cancer Patients
Regeneron Pharmaceuticals Inc. (REGN) and Sanofi-Aventis SA (SAN) said an experimental drug used in combination with chemotherapy extended the lives of patients with advanced colorectal cancer in a study. Shares rose as much as 12 percent in extended trading.
The companies plan to seek regulatory approval this year for the drug Zaltrap, also called aflibercept, for use in patients not helped by chemotherapy, Tarrytown, New York-based Regeneron and Paris-based Sanofi said today in a statement. The 1,226-patient study, the third of three usually required for U.S. regulatory approval, compared the drug to a placebo in patients and was aimed at achieving a 20 percent benefit in a statistical measure of survival.
The medicine is designed to control cancer growth by blocking the blood supply to the tumor. The market opportunity for treating colorectal cancer in patients who didn’t benefit from a previous therapy is about $200 million in the U.S. and $400 million worldwide annually, said Robyn Karnauskas, a Deutsche Bank analyst in New York.
“Zaltrap will take a piece of the pie,” Karnauskas said today in a note to investors, with a projected peak revenue of $200 million.
‘Unique’ Treatment
“We are pleased with the results of the Zaltrap Phase III study in this group of patients,” said Debasish Roychowdhury, senior vice president and head of Sanofi’s global oncology division. “We are committed to bringing Zaltrap to patients with advanced colorectal cancer and maximizing the therapeutic potential of this unique and exciting medicine.”
Regeneron shares rose $3.86, or 7.4 percent, to $56 at 5:30 p.m. New York time in extended trading after reaching as high as $58.25. The shares gained $2.28, or 4.6 percent, to $52.14 at the close of Nasdaq Stock Market trading before the results were announced.
About 142,000 new cases of colorectal cancer were diagnosed in the U.S. in 2010, according to the National Cancer Institute. The disease killed an estimated 51,370 patients, the institute said.
Zaltrap failed to help lung cancer patients live longer in a clinical trial, Regeneron and Sanofi said March 10.
To contact the reporter on this story: Rob Waters in San Francisco at rwaters5@bloomberg.net.
To contact the editor responsible for this story: Reg Gale at rgale5@bloomberg.net.
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