New Frontier For Cancer Treatment
At
the conclusion of
the annual meeting of the American Society of Clinical Oncology (ASCO) at the
end of May, many physicians left the meeting with hopes for a new generation of
drugs. In addition, many investors
also left with hopes that many of these new drugs will fuel tremendous growth in
several companies who presented their data at the meeting.
Over the last several months, the
biotechnology indices have performed well, particularly those companies involved
in cancer drug development. This
was no coincidence. The ASCO
meeting is the major cancer meeting of the year for physicians, and cancer is one
of the biggest markets for many emerging biotech companies. Many investors anticipated good news from specific companies coming out
of this meeting — and they were not disappointed. As news of several new studies highlighting the new cancer
drugs began to circulate several months prior to the meeting, investors took
notice. This, coupled with a
favorable Nasdaq milieu during the last several months, fueled the nice gains
exhibited by several companies.
Cancer: The Biggest And Baddest
Today, cancer is the cause
of one out of four deaths in the United States. It is the #2 killer of people today, second only to heart disease. The incidence of many types of cancer seems to be rising and, given people
are living longer; I suspect this trend will continue. The drug cost to treat cancer today is close to $10 billion
per year and
many of the companies highlighted at the ASCO meeting are poised to take a bite
out of this growing market with their new generation of drugs.Â
The efficacy of these new drugs is based on our better
understanding of the molecular biology and genomics of cancer. This new generation is more specific and less toxic
than the previous generation. They are also more
versatile than conventional chemotherapy and are being tested to treat a variety of
cancers, not just one. Many of
these new drugs specifically target cancer cells based on molecular
characteristics and leave healthy cells alone. They attack cancer cells on many recently discovered molecular fronts and
can be classified based on their targeted action.Â
This new generation of
cancer treatments includes monoclonal antibodies, anti-angiogenesis agents,
growth-signal antagonists, and vaccines. The
data presented by companies at the ASCO meeting on many of these new drugs is
very exciting. However, most of these drugs at this stage will not cure
people of their cancer. The hope
now is to use these new drugs to keep cancer in check, so patients can live
longer, with a better quality of life. Many
are several years away from coming to market. However, there are some companies who will get
there first and when they
do, their investors will be grateful for it.
Companies Leading The Way
ImClone Systems
(
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Phase II and III clinical trials
highlighting its signature drug, C225, to treat a variety of cancers. C225 is a monoclonal antibody directed at a specific cancer cell receptor
site that is responsible for uncontrollable growth. This growth is fueled by a protein called Epidermal Growth Factor and
this cancer receptor is called the Epidermal Growth Factor receptor or EGFr.Â
ImClone’s new monoclonal antibody drug plugs up this receptor and
prevents the epidermal growth factor from stimulating cancer cell growth.
ImClone’s clinical trial data on the treatment of advanced colorectal
cancer with C225 was positive for reducing tumor burden and prolonging survival
in patients who have run out of treatment options. The company hopes to use this study and go directly to the
FDA in the upcoming months for possible review and approval. ImClone is also testing this drug against a variety of other
cancers and it well may have a place in the treatment regiments of them. ImClone’s pipeline
also extends to developing cancer vaccines and anti-angiogenesis
compounds — attacking cancer on all fronts.
ImClone Systems is not alone in developing a monoclonal antibody drug to
block one of the potent stimulators of cancer-cell growth. It has plenty of competition
with the likes of Genentech
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Pharmaceuticals
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clinical testing and all want a
piece of this growing financial pie. ImClone,
however, has the lead in this high-stakes race and I expect the company to grow
because of it.
Genentech
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out of the ASCO meeting poised for growth. The company already has growing revenue from its monoclonal antibody drug
(Herceptin) to treat advanced breast cancer and it presented data in
anticipation of expanding the drug’s use and market share. Herceptin had close to $280 million in sales in 2000, up 50% from the
year before. Genentech is also
receiving growing revenue from the drug Rituxan, in collaboration with Idec
Pharmaceuticals
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lymphoma. Its use is increasing and
sales doubled in 2000.
Both
Genentech and Idec Pharmaceuticals are in the process of bringing to market a
second generation Rituxan, with an FDA decision in the near future. As mentioned, Genentech is also has a monoclonal drug to block the
Epidermal Growth Factor receptor for the treatment of advanced cancer in late
stage clinical trials. The company is doing this in conjunction with OSI
Pharmaceuticals. In addition to the cancer market, Genentech has its hands in the huge
market to treat asthma. The company
is awaiting FDA approval of its drug, Xolair, to treat asthma. If the FDA approves Xolair, this will add greatly to the
company’s future growth.
In addition to the companies mentioned, there are others to keep an eye
on as the cancer market grows over the next several years. Cell Genesys
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the cancer market with its new
cancer vaccine. The company
presented positive phase II clinical data on the use of its vaccine to treat
advanced lung cancer and expects to start the final phase of clinical testing
soon. EntreMed
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that has been in the news, is developing drugs to choke off the blood supply (angiogenesis)
to cancer cells. These anti-angiogenesis
compounds are in the early stages of clinical development and if found
effective, will not be on the market for another three or four years.
All in all, the ASCO cancer meeting revealed some very promising insights
on the drugs of the future for the treatment of cancer. Many of these new drugs are not far away from practical use
and their sales will fuel much of the growth in the companies bring them to
market.
Until next time,