4
BioTech Stock Report, January 2004
tioned in earlier reports, erythropoietin
therapy remains an important suppor-
tive therapy for cancer patients suffer-
ing from anemia, which is a common
complication associated with cancer
therapy. Alternative dosing regimens
for Amgen's (NASDAQ: AMGN) Ara-
nesp and Johnson & Johnson's
(NYSE: JNJ) Procrit remain under
evaluation in order to determine the
most effective way to treat patients. In
particular, Amgen continues to sup-
port the 200mcg every-other-week
fixed dose regimen. Several uses be-
yond the treatment of chemotherapy or
end stage renal disease induced ane-
mia are in early stages of evaluation.
Final thoughts
Annual meetings for cancer and
cancer-related topics are important for
biotech and Big Pharma, as the meet-
ings enable the companies to present
clinical data for promising new and
exciting therapies to combat these ma-
lignanices. At ASH this year, there
were clear winners: Rituxan, Thalomid
and Thalomid analogues Revimid and
Actimid. Based upon the interest in
this year's meeting, we are confident
investors will be watching the devel-
opment of these agents and listening
for new information when ASCO meets
next year. $$
been a priority for some companies,
including Celgene. Development of
therapies for MDS is occurring rapidly.
Advances in the understanding of the
disease have enabled drug develop-
ment to occur on several fronts. Ulti-
mately though, leaders expect MDS
treatment regimens will emerge based
on patient-and disease-specific charac-
teristics. Celgene's Revimid, Phar-
mion's Vidaza (azacitidine), and Super-
gen's Dacogen (decitabine) appear the
closest to market.
There was no information avail-
able at ASH regarding Supergen's
(NASDAQ: SUPG) Dacogen, so we
cannot comment on interest in this
agent. We do know that Dacogen is a
chemotherapeutic agent that has been
shown to have a broad spectrum of
activity in several hematological malig-
nancies as well as solid tumors. The
compound belongs to a new class of
drugs called hypomethylating agents,
with a unique mechanism of action.
Methylation is a process in which
methyl (CH3) groups are added to
DNA to inactivate or "silence" genes.
Recent research demonstrates tumor
suppressor genes and DNA repair
genes are hypermethylated and si-
lenced in a majority of cancers, typi-
cally at an early stage of the disease.
Hypermethylation, then, is an early
warning sign that may prove useful for
early cancer detection and screening
of cancer patients.
The final topic we want to address
is supportive therapy for hematologi-
cal malignancies. As we have men-
to the company's new agents for MM.
Celgene is currently evaluating Re-
vimid and Actimid, both analogues of
Thalomid, as therapeutic approaches
for patients with refractory or relapsed
MM. Revimid and Actimid possess
similar mechanisms of action as Thalo-
mid, which include the ability to di-
rectly inhibit myeloma cell growth and
inhibit angiogenesis. Both of these
compounds are capable of accomplis h-
ing this by inducing the secretion of
anti-inflammatory compounds like tu-
mor necrosis factor-alpha (TNF-a) and
interleukin 1-beta, and enhancing the
secretion of interleukin-2, a growth
factor for T cells, which can stimulate
an anti-myeloma effect, and interleu-
kin-10, which has anti-inflammatory
activity.
Like Thalomid, Revimid and Ac-
timid both are orally bioavailable. More
importantly, the two compounds have
a better safety profile than Thalomid,
which should facilitate development of
the two agents. We are extremely en-
couraged by the clinical data pre-
sented at the meeting for these two
compounds. For a more comprehen-
sive discussion of Celgene and the
company's products please see the
Company Analysis.
The other major disease that was
discussed at ASH was MDS, malig-
nant disorders of blood cell production
that eventually lead to acute leukemia.
Affecting approximately 300,000 peo-
ple worldwide, MDS is one of the most
common hematological abnormalities.
The seriousness of the disease has
