After years in the doldrums things are looking up for OXB shares. It rejected a bid approach in January
but is expected to be targeted again this year if one of its drugs in development turns up trumps.
The shares have risen a fifth in the last month following good news about its TroVax drug to treat rare
kidney cancer.
The European Commission is expected to designate it an orphan drug giving OXB ten years of exclusive marketing. The same thing could happen in North America.
A multi-centre Phase 3 trial started last month to see whether sufferers taking TroVax live longer. Even if proved successful the drug will not go on sale until 2009 at the earliest.
TroVax’s success is a big indicator for the share price as the drug might also be effective for colon/ rectal and prostate cancers.
Investors are eagerly awaiting news of licensing discussions with an unknown pharmaceutical company for TroVax, which some think will happen in the next couple of months.
OXB has 80 other patents – one of the broadest in gene therapies. Another exciting prospect is ProSavin, which will enter clinical trials in 2007 to see whether it is an effective treatment for Parkinson’s – a disease which effects 1% of the population.
Other drugs could treat spinal cord injuries and eye diseases such as macular degeneration and diabetic retinopathy.
Deals already done are a technology license to VIRxSYS for an AIDS/HIV product in Phase 2 trials and a strategic alliance withSigma-Aldrich for the LentiVector-RNA reagents for eye diseases.
The Foundation Fighting Blindness has paid OXB a substantial sum and £2 million of new shares to fund a treatment for Stargardt disease. OXB is collaborating with leading US firm Wyeth on the 5T4 antibody therapy treatment for cancers and will collect a possible $2 million when clinical trials start.
The upshot is the cash position is strong with around £35 million in the bank, which should be enough for another couple of heavily loss making years, excluding any milestone and licensing payments.
by: Timon Day
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