International Biotechnology Trust (IBT) 22 sept 2003 Page 12
developing antibodies (small peptide binders similar to antibodies) in the areas of protein
separation, affinity ligands for drug discovery, diagnostics and biotherapeutics. The
company's collaboration with Amersham in the area of bioseparations is progressing well
and the company has met its milestones. Affibody is well financed with cash estimated to last
until the end of 2005.
In May 2003, Auxilium's investors agreed to guarantee a revolving line of credit of $10m to
the company in proportion to their investments and in return for warrants. IBT's share of the
guarantee is £0.1m and is shown as a contingent liability in the accounts. Auxilium's
testosterone gel, Testim has been approved for sale in the US and the UK for use in treating
men with low testosterone levels, and was launched in the USA in February 2003. The sales
ramp has been disappointing due to difficulties with pre-marketing and a stronger than
expected competitor response. However, it appears that Testim is now making up an
increasing share of new testosterone prescriptions as physicians recognise the benefit of the
product over alternative gels. Auxilium is likely to need to raise another round of private
finance in which IBT is likely to participate (up to £0.5m).
Genosis, the infertility diagnostics company, has completed its clinical trials for the female
fertility test and has filed for regulatory approval for the female test. The final tooling and
manufacturing of the male fertility test has been somewhat delayed, although the male
device appears to have the necessary accuracy and sensitivity. This has delayed clinical
testing. Since 31 August 2003 an investment of £0.2m has been made in Genosis in order to
fund the completion of the trials for the male test (total investment £0.7m).
There were no exits from unquoted investments during the period under review.
QUOTED COMPANIES
New investments were made in seven quoted companies Cambridge Antibody Technology
Group (CAT), Encysive Pharmaceuticals, Galen Holdings, Indevus Pharmaceuticals, Inspire
Therapeutics, Progenics Pharmaceuticals and XOMA.
CAT (£0.5m investment)
CAT is a Cambridge, UK-based antibody platform and therapeutics company. The
company's primary areas of therapeutic focus are auto-immune disorders and oncology.
CAT's most advanced program is HUMIRA, an antibody which is partnered with Abbott and
has been launched in the US for rheumatoid arthritis and been approved in Europe. CAT has
seven other antibodies in clinical development, the most advanced of which is Trabio in
Phase III trials for the prevention of post-operative scarring in patients with glaucoma.
Encysive Therapeutics (£1.1m investment)
Encysive is a US-based company developing therapeutics for cardiovascular and
inflammatory diseases, the most advanced of which is Sitaxsentan, which is in a pivotal trial
for Pulmonary Arterial Hypertension (PAH). The company expects to report data from the
trial towards the end of 2004 and to announce a marketing partner thereafter. Sitaxsentan
appears to offer a significant improvement in treatment over the traditional practice of care, a
continuous infusion by implanted catheter. Currently there is only one oral drug available for
PAH patients, and data to date suggest that the clinical profile of Sitaxsentan may be
superior.
Indevus Pharmaceuticals (£0.4m investment)
Indevus is a US-based company with drug candidates in development for overactive bladder,
anxiety, stroke, HIV, pain and inflammation and serious fungal infections. Indevus acquires
the rights to developmental compounds and uses its team to advance the clinical program,
either independently or with a partner. Indevus' lead compound, Trospium, is for the
treatment of overactive bladder. Currently marketed products can cause side effects
including dry mouth and data suggest that Trospium may have similar efficacy to marketed
