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Genentech Buys $350 Million Stake in Drug Designed to Stop Autoimmune

Attacks in Type 1s

Jul 1, 2009

Genentech, a bioscience firm famous for its development of antibodies

designed to combat cancer, has entered a $350 million agreement with Bayhill

Therapeutics

to assist in development of BHT-3021, a drug that treats

type 1

diabetes by reducing or stopping immune system attacks on pancreatic beta

cells.

Under the agreement, Genentech will pay $25 million in upfront to acquire an

equity stake in Bayhill, plus another $325 million to finance development of

BHT-3021.

Bayhill's drug is based on its BHT-DNA antigen-specific immunomodulatory

platform. Put simply, the drug has worked in trials by preventing T cells,

the

body's immune system's " soldiers " from mistakenly attacking

insulin

-producing pancreatic islet cells.

It's done by inserting the gene for a protein that is a known target of the

autoimmune system into a plasmid. (A plasmid is a small unit of DNA within a

cell that can replicate itself independently of chromosomal DNA). In type

1s, the protein in question is proinsulin.

When the plasmid is injected, dendritic cells perceive it as an antigen-a

toxic or harmful substance. The cells then take up the plasmid and transport

it

to T cells, almost as though they are bearing a message that says, " Shields

up! Do something! " But before the T cells can do anything, the plasmid binds

to them and inactivates them so that they cannot attack pancreatic cells.

In a way, the plasmid takes the battle to the enemy rather than waiting for

T cells to strike against beat cells that cannot defend themselves.

In a 12-week trial involving 42 patients with type 1, Bayhill reports that

patients taking BHT-3021 showed better preservation of their C-peptide

levels

than patients taking a placebo.

In a normally functioning pancreas, proinsulin produced by the beta cells is

" cleaved " by enzymes into insulin and C-peptide. When T cells attack beta

cells,

disrupting and then eventually destroying the production of proinsulin,

C-peptide levels plummet. If a therapy can help patients maintain C-peptide

levels,

the FDA considers that result a strong marker of its effectiveness.

The Genentech buy-in will fund Bayhill's completion of current Phase I/II

testing, while Genentech will be responsible for all future research,

development,

manufacturing and commercialization efforts.

Good Timing for Genentech

The agreement comes at a good time for Genentech. The pioneering biotech

company, acquired in March by Roche for $46.8 billion, suffered a recent

setback

to its attempt to find new uses for its anti-cancer drug, Avastin.

The company was hoping to extend be able to extend revenues from the drug,

now at $4.8 billion per year worldwide, to $10 billion. However, the drug

failed

to perform well in a late-stage study of early-stage colorectal cancer

patients.

Genentech's therapies have been based on creating monoclonal antibodies

(pure, homogenous antibodies derived from a single clone of cells) to treat

cancer.

It has also used monoclonal antibodies as an approach in treating rheumatoid

arthritis, lupus nephritis and pediatric

asthma.

The problem with monoclonal antibodies is that they compromise normal immune

system functions, often creating serious side effects and necessitating

regular

IV infusions. They are not really suitable to the treatment of a chronic

autoimmune disease, such as diabetes, which explains Genentech's interest in

financing

a different approach to creating therapies.

Given the epidemic nature of diabetes, the company's decision to help bring

BHT-3021 to completion could soon be seen as a wise move to step outside its

comfort zone

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Categories:

Medications,

Medications Research,

Research,

Type,

Type 1 Issues,

Type 2 Issues

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