US$865m dollar hope for Antisoma

Source: Healthcare Digital

Date :14/04/2008 15:07:13

Antisoma shares rose by twelve percent after its Swiss partner, Novartis paid it $25 million (£12.7 million).

The biotechnology company paid this amount at the start of a lung cancer final-stage drug. Further payments could award Antisoma as much as $865 million, if an experimental drug called ASA404, which disrupts the blood supply to tumours, is promoted effectively and developed in several areas.

The company, now having four drugs in clinical trials, had a pre-tax profit of £4.12million for the six months to 31 December 2007, in opposition to a loss of £7.49million the year before.

The turnaround was $75million (£38.2million) from Novartis, shortly after a global licensing deal for ASA404 was signed in April 2007. The revenue is being booked between April 2007 and June 2007 on a time-appointed basis.

Capital was £50.4million at December 31, up from £33.6 at the end of 2006.

“2008 promises to be a significant year for Antisoma, with ASA404 progressing to phase III and other drugs advancing through development,” said chairman Barry Price. “With a strong balance sheet, we are well placed to invest in and add value to our current pipeline and to add further promising drugs to our portfolio when opportunities arise.’

Antisoma, now with £125 million in its back pocket, aims to make an upfront payment to Betagenon, another Swedish biotech, and has the resources to make further purchases, it claimed on Monday. Chief Executive Glyn Edwards said Antisoma was fortunate to be in a strong cash position.

"We just happen by great luck to be entering this really difficult economic climate with a really strong balance sheet," he said.

The company aims to continue to research into cancer treatment at Betagon.