Drug Cos. Intensify Cancer Treatment Push

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Hi Group,

I have posted an article that mentions Gleevec and other drug companes who

are developing like drugs. I hope that is an " allowed " post, because I think

that information sharing about pertinent topics are a function of support

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Drug Cos. Intensify Cancer Treatment Push

Wed Mar 16, 2:33 PM ET

By THERESA AGOVINO, AP Business Writer

NEW YORK - The war on cancer has some fortified soldiers. Some of the

nation's biggest drug companies are investing an increasing amount of

resources toward finding treatments for the disease.

Cancer research has been a hallmark of companies such as Bristol-Myers

Squibb Co. and AstraZeneca PLC. But over the last few years, others

including Wyeth, Schering-Plough Corp., GlaxoKline PLC and most notably

Merck & Co. have been intensifying their work on cancer medicines. They've

purchased smaller, cancer-focused drug makers; formed licensing

arrangements; added staff and created specialized research centers.

The increasing commitment to cancer treatments grows out of a confluence of

economic and scientific factors. Company executives say the odds of finding

suitable drug candidates have risen significantly in the last few years with

the mapping of the human genome and other technological advances. And new

cancer treatments can command very high prices and generate substantial

revenue, since there is little competition in the field.

Novartis SA's Gleevec, introduced in 2001, treats a form of leukemia as well

as rare tumors of the gastrointestinal tract. It costs about $2,450 a month

wholesale per patient, and brought in $1.6 billion in sales last year.

Erbitux, a treatment for colorectal cancer introduced last year by

Bristol-Myers and ImClone Systems Inc., carries a wholesale cost of between

$18,000 to $40,000 a month per patient. Analysts predict Erbitux will also

be a blockbuster.

Insurance typically covers the cost of treatment, but there's still been

controversy over some cancer drugs' cost. Companies have programs for

patients who lack insurance and can't afford the drugs. Still, those prices

create an attractive market.

" Drug companies are seeing that cancer can be lucrative, " said

Moskowitz, an analyst with Friedman, Billings, Ramsey. " Look at Erbitux and

Gleevec. They may be for small markets, but the prices will let the

companies make money. "

Whether the increased investment will lead to a rash of new cancer products

remains to be seen. Drug development is still a risky business; cancer

accounts for the second-largest part of Pfizer Inc.'s research budget but

that hasn't transformed the company into a powerhouse in that area.

Pfizer does have a promising product for patients with the same rare tumors

treated by Gleevec but who have become resistant to that drug. The company

may file for federal approval of the drug later this year. Bert Hazlett, an

analyst with Suntrust Humphrey, said the drug's sales potential

could reach $800 million to $1 billion if it is approved for other types of

cancer.

Wyeth has a product for kidney cancer it intends to seek approval for next

year. Meanwhile, Novartis SA plans to seek approval for a drug for

colorectal cancer either late this year or in early 2005. Merck, always a

force in the vaccine industry, has an inoculation for cervical cancer that

it plans to seek approval of this year.

" There has just been an explosion of our understanding of cancer since human

genome, " said Dr. Lee F. , vice president of oncology clinical research

at Wyeth, which currently sells two cancer drugs.

Two and a half years ago, Wyeth created a center of excellence to research

cancer, placing everyone working on the disease in Cambridge, Mass. This

allowed the group to streamline its approach and work with the academic

community in the area. It currently has 13 cancer drugs in clinical

development, triple the amount from three years ago.

When GlaxoKline was formed through a merger in 2000, the company had

two cancer drugs. Now, with a new focus and additional spending, the company

is developing eight drugs for cancer treatment, plus three for the treatment

of side effects, one vaccine and three therapeutic vaccines.

Perhaps the most pronounced efforts are at Merck, which doesn't sell any

cancer treatments although it does have Emend, a product for nausea caused

by chemotherapy. In the last 18 months, Merck purchased Aton Pharma Inc., a

privately held biotech company focused on cancer treatments, and it has

signed deals with two smaller companies to develop oncology drugs.

A deeper understanding of cancer and advances in technology have contributed

to the shift in drug companies' focus, said Dr. H. Friend, Merck's

executive vice president of advanced technology and oncology.

" Now we have the tools that allow us to see what is going in cancer cells, "

Friend said. " We've gone from uncertainty about the disease to having more

clues about what we can do. "

Friend says it is possible to scan an entire cancer cell to look for

specific mutations that provide researches an idea of which compounds might

be most effective in treating the disease. Such tools mean it can take just

two to five years to bring a compound into clinical development, down from 5

years to 10 years just a few years ago.

Such improvement brings business benefits. Industry experts say it costs

over $800 million to develop a drug. Hastening the development process will

reduce costs. That's especially important for cancer drugs because they have

smaller markets than other diseases; there are many more people who suffer

from high blood pressure, for example, than there are people with most types

of cancer.

Cancer drug development already has some economic advantages - trials are

usually shorter and require fewer patients than drugs to treat other

conditions. For example, Pfizer's Phase III trial for its promising cancer

drug contained less than 400 patients. A typical Phase III study has between

1,000 and 5,000 patients.

The Food and Drug Administration (news - web sites) also has expedited

approval of drugs for cancer and other diseases life-threatening with less

clinical testing than typically required. The companies do have to continue

to study the drugs after approval.

Another advantage to selling cancer drugs is that the smaller patient

populations allows for more targeted marketing, " The marketing is less

expensive because it is more focused, " said Dr. Joerg Reinhardt, head of

development at Novartis.