Archive for the 'Cardio' Category

Mesoblast Limited (ASX:MSB) To Acquire Angioblast Systems Inc, Successfully Completes Capital Raise

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Australia’s regenerative medicine company, Mesoblast Limited (ASX:MSB) (OTC:MBLTY) today announced that it will acquire its United States associate company, Angioblast Systems, Inc. (Angioblast). Additionally, Mesoblast announced it has completed a capital raising of A$37 million to fund the acquisition and advance operations of the expanded Mesoblast Group. These funds comprise A$24 million invested immediately and A$13 million committed subject to both shareholder approval and completion of the acquisition offer.

Mesoblast Chairman Brian Jamieson said: “We are delighted to bring the commercial rights to the patented adult stem cell technology platform under one umbrella. With Mesoblast moving to 100% ownership of Angioblast, Mesoblast shareholders will derive much greater potential benefit from product commercialisation, and from the broader strategic partnerships or collaborations Mesoblast will now be able to conclude.”

The capital was raised from United Kingdom institutional and sophisticated investors, as well as from new and existing Australian investors, at a share price of A$1.70, representing a 12% discount to the Company’s closing price on May 3 2010.

The acquisition has been structured on an agreed exchange ratio of Mesoblast shares for Angioblast stock. To acquire the remaining fully-diluted Angioblast stock which is not already owned by Mesoblast (approximately 67%), the Company proposes to issue an additional 94.6 million Mesoblast shares to Angioblast security holders. Together with Mesoblast’s current 140.6 million shares on issue, post-acquisition the Mesoblast Group will have a total of up to 235.2 million shares outstanding.

Angioblast stockholders will be given the election to take the acquisition consideration either as 100% Mesoblast fully paid ordinary shares or up to 15% in cash and the balance (a minimum of 85%) in Mesoblast fully paid ordinary shares. The cash component will enable Angioblast stockholders who are subject to United States federal tax to fund the payment of capital gains tax arising as a result of this transaction.

The acquisition is subject to various conditions including Mesoblast and Angioblast shareholder approvals and satisfactory due diligence. An Extraordinary General Meeting of Mesoblast shareholders to ratify the acquisition is expected to be held before the end of June 2010, with all shareholders receiving full documentation prior to this date.

At the Mesoblast share price as at the close of trading on May 3 2010, this would result in a capitalisation of Mesoblast (not including the capital raising as referred to in this announcement) of A$455 million.

Mr Jamieson also announced the appointment of Mesoblast’s current Executive Director, Professor Silviu Itescu, as Chief Executive Officer and Managing Director of the Group, Mesoblast Limited. The appointment takes effect immediately.

“The appointment of Professor Itescu as the leader of the Group will ensure that Mesoblast continues to deliver on shareholder value.

“As a leader in the global stem cell space, he brings enormous international knowledge of the regenerative medicine industry, combined with experienced and formidable business acumen,” Mr Jamieson said.

Professor Itescu said that the Angioblast acquisition would enable the Mesoblast Group to significantly broaden its product portfolio based on 100% ownership of the intellectual property underpinning the company’s patented adult stem cell technology platform.

Transforming Mesoblast from a biologics company focused on orthopaedic applications to a global leader in the broader regenerative medicine industry should prove to be a pivotal event in the Company’s evolution,” he said.

“By consolidating our technology platform and assets into one company we will be able to both streamline our corporate operations and strengthen the global leadership team as the Company moves to the next level of its corporate maturity. Additionally, we will now be able to rationally deploy all of our available resources according to where we deem to have the greatest commercial opportunities.

“Mesoblast is now a mature multi-product company with products in late, mid, and early stage development. The Company’s product pipeline will be significantly extended beyond its orthopaedic focus, including spinal fusion and osteoarthritis, to include products for treating diverse conditions such as congestive heart failure, heart attacks, eye diseases, diabetes, and bone marrow repair.

“This breadth of products will enable the Mesoblast Group to focus on three simultaneous commercial strategies: taking lead products to market on our own and retaining 100% of the commercial upside, entering into distribution agreements to leverage sales/marketing strength, and partnering through broad-based strategic alliances,” Professor Itescu added.

Test may let transplant patients skip biopsies

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By Julie Steenhuysen

A gene-based blood test worked as well as a surgical procedure used to check for signs of rejection in patients with heart transplants, U.S. researchers said on Thursday.

They said the simple blood test called AlloMap, made by molecular diagnostics company XDx Inc, will allow heart transplant patients to forego frequent biopsies of the heart, a procedure dreaded by many transplant patients because it is uncomfortable and can damage heart valves in a few patients.

“This represents a major step forward in the way we manage a patient after heart transplants because we can now safely reduce the numbers of heart biopsies,” said Dr. Hannah Valantine of Stanford University, who designed the study to determine whether it was safe to reduce the number of necessary biopsies by using the blood test.

Valantine and colleagues presented the findings at the International Society for Heart & Lung Transplantation annual meeting in Chicago.

Heart transplant patients need to be monitored regularly for signs of organ rejection, typically through a procedure called an endomyocardial biopsy, in which doctors insert a tube into a vein in the neck and into the heart, where tiny bits of tissue are collected and tested.

Heart transplant recipients typically get 15 to 20 biopsies in the first six months after a transplant, and two to four biopsies per year after that.

“We need to monitor patients very carefully to detect a rejection so that we can treat it in a timely fashion and prevent the heart from failing,” said Valantine, whose study was published online in the New England Journal of Medicine.

She said biopsies are invasive and uncomfortable and are associated with a low risk of complications and death.

“The patients dislike them and there is a huge cost burden to institutions,” Valentine said, noting that the biopsy costs $4,000, about $1,000 more than the AlloMap test.

The study was funded by XDx, a molecular diagnostics company in Brisbane, California.

Valantine said doctors have been doing the biopsy procedure for 30 years. Her study compared that procedure to the AlloMap test, which checks the blood to see if specific genes associated with rejection are turned on or expressed.

The team compared results of 600 patients who were randomly assigned either to have a biopsy or to have an echocardiogram and the AlloMap test.

Valantine said the blood test worked as well as routine biopsies, with patients in the blood test group showing similar rates of rejection and other complications to those who got biopsies.

Researchers are also doing a cost analysis comparing the two procedures, but those results are not yet available.

The blood test is currently offered at 65 transplant centers in the United States. The U.S. Food and Drug Administration approved it for heart transplant patients in August 2008.

Stimulating Healing in the Heart

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A startup aims to repair heart damage with peptides that trigger the proliferation of heart cells.
By Emily Singer

Growing heart muscle: A peptide called neuroregulin1 can stimulate heart muscle cells (red) in rats to divide. Markers of dividing cells (red) are shown in green/yellow. Cell nuclei are shown in blue. Credit: Bersell et al, Cell

While the human heart was once thought incapable of regeneration, growing evidence shows that even the adult heart can grow new cells, albeit slowly. Roger Hajjar, director of the Cardiovascular Research Center at the Mount Sinai School of Medicine, in New York, and Bernhard Kuhn, a cardiologist at Children’s Hospital Boston, aim to harness this regenerative ability to change how heart disease is treated. They cofounded a startup called CardioHeal, based in Brookline, MA, to develop peptide drugs that can spur growth of new heart muscle cells in the human body.

The scientists have identified a pair of peptides that can stimulate new cell growth and improve heart function in rodents induced to have heart attacks. Hajjar’s lab at Mt. Sinai is now testing one of the peptides, periostin, in pigs induced to have heart attacks. Because these animals have hearts similar in size to humans, they provide a good model for testing new therapies prior to human clinical trials. Preliminary results show that injecting the peptide into the pericardium, the lining around the heart, seems to help. “They’re not completely back to normal, but they’re much better,” says Hajjar.

Researchers hope the molecules will ultimately provide an alternative approach to treating heart disease. Currently, people who suffer a heart attack get medication, such as beta blockers, to make it easier for the heart to beat, and surgery to clear blocked arteries. “But none are directed at giving new heart muscle back after myocardial infarction,” says Kuhn. The cardiologist says patients regularly ask him if the treatment is available for them, part of the reason he decided to found the company. “I’ve been getting patient requests for a couple of years, but we don’t have an open trial or anticipate opening one anytime soon.”

Cardioheal’s approach is, to some degree, in competition with stem-cell therapy, which is already being tested in humans. Scientists are working on different ways of harvesting and delivering stem cells to patients with heart disease, and clinical trials have so far yielded mixed results. Transplanted cells appear to have difficulty surviving and integrating into their new environment. In fact, some scientists suggests that benefit of cell transplants comes from the cells ability to stimulate innate growth. Triggering this process with peptides “may be a simpler method of treatment of certain conditions such as cardiomyopathy [an enlarged heart] where the problem is lack of viable, contractile heart muscle cells,” says Amish Raval, a cardiologist at the University of Wisconsin, in Madison, who is not involved with the company.

Cardioheal still has a number of questions to address before testing the peptides in patients. “What is the least invasive way of getting it to the patient’s heart?” asks Hajjar. “At what point after heart attack would you deliver this–early, late, when a patient develops congestive heart failure?” Researchers say they haven’t seen adverse effects in treated animals, but extensive safety testing needs to be done before human trials. “Tumor formation, noncardiac muscle tissue formation, causing dangerous arrhythmias needs to be systematically evaluated in animal models with broad dose ranges tested,” says Ravel. “I would be interested in knowing whether the cardiac cells actually integrate with the environment in the heart, or just independently contract. There has to be electrical and mechanical integration for this treatment to work.”

Copyright Technology Review 2010.

Israel: Aiming to beat diabetes

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Diabetes is now reaching epidemic proportions. The chronic disease occurs when the pancreas does not produce enough insulin, or the body cannot effectively use the insulin it does produce. Over time this leads to serious damage to the body – particularly the nerves and blood vessels – causing blindness, loss of limbs, and eventually death.

In the US alone 23.6 million people (7.8 percent of the population) have diabetes, while worldwide the World Health Organization claims that some 180 million people suffer from the disease. In some communities around the world – like Oklahoma – a staggering 39 percent of the population has pre-diabetes or diabetes.

The figure is rising dramatically. WHO predicts that this figure will double by more than 50 percent in the next 10 years worldwide, and 80 percent in upper-middle income countries, if something isn’t done urgently to combat the disease.

The primary causes of Type 2 diabetes – the most common form of the illness – are obesity, lack of exercise. In the past most people tended to develop this in the middle years, today the age is creeping lower and lower.

Israeli scientists are at the forefront of research into diabetes, searching for ways to diagnose the illness at an earlier stage, create more effective and pain-free treatments, help treat the side effects of the disease, and understand how this disease develops in an effort to find a cure.

Breakthrough diabetes research may be closest thing to a cure [VIDEO]

The World Health Organization estimates that over 180 million people worldwide have diabetes and predicts that will more than double by 2030.

Israeli proposes to shrink Samoan waistlines

An Israeli diplomat in Samoa is bringing Israeli experts to curb increasing obesity and diabetes in the South Pacific islands.

New oral insulin capsule passes Phase 2 clinical trials

Israel drug delivery systems developer Oramed Pharmaceuticals, has reported positive results from a Phase 2A study of its oral insulin capsule, ORMD-0801, on type 1 diabetic patients.

Haifa scientists close in on new diabetes treatment

Thanks to ongoing research at the University of Haifa, it may soon be possible to treat diabetes by popping a pill instead of an injection.

Israeli patent moves closer to achieving oral insulin treatment

When Dr. Miriam Kidron, a scientist from Hadassah University Hospital in Jerusalem, first announced that she and a group of fellow researchers planned to bring an oral insulin for diabetics to market, most people thought the idea was ridiculous.

Israeli startup turns mother’s herbal remedy into a diabetes treatment

For Israeli Bedouin Dr. Sobhi Sauob, it was only natural to turn to his mother when he decided to start developing a new herbal remedy to help diabetics.

Scientists develop protein to regrow blood vessels

A new protein injection developed by Israeli researchers can trigger the regrowth of blood vessels around the heart, offering a potential alternative to risky bypass surgery.

Landmark Israeli-led study to improve diagnosis of diabetes

The World Health Organization, the US National Institute of Health and others are expected to change their definition of gestational diabetes, based on an international study led by an Israeli medical team.

Natural Israeli remedy holds out hope for diabetes sufferers

There’s nothing like a hot cup of tea on a cold day. Now an Israeli company plans to introduce a herbal tea to the US that isn’t just an enjoyable break, but which it claims can substantially reduce the blood sugar levels of diabetics.

Technion researchers find that vitamin E can help diabetics avoid heart attacks

Researchers at the Technion-Israel Institute of Technology and Clalit Heath Services have discovered that taking vitamin E supplements could reduce the risk of heart attacks and stroke in type II diabetics who carry a specific version of a gene.

Pfizer puts funds behind team of Israeli all-star scientists to change traditional diabetes research

It’s become a given that Israel is a world leader in high tech and biotechnology – areas driven by doctors and scientists often with spirited visions of making the world a better place. So wouldn’t it make sense to bring together some of the top Israeli minds in a given field to form a dream-team of physicians and scientists?

Israel set to become world center for diabetes research

Israel’s contribution to the worldwide effort to find a cure for diabetes received a big boost last week when a five-year, $30 million program was launched in Jerusalem.

Israeli-Swedish team uncovers key to onset of Type 2 diabetes

Scientists at the Weizmann Institute of Science in Rehovot and the University of Umea in Sweden have unraveled a mechanism by which fat contributes to the onset of the Type 2 diabetes, which affects one out of 12 adults in the Western world and threatens to double in the next two decades, The Jerusalem Post reported.

Israeli couple finds sleep apnea may extend life

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Periodic breathing cessation during slumber can lengthen seniors’ lives.

Sleep apnea syndrome – in which sufferers stop breathing momentarily many times during the night – has for many years been regarded as a major risk factor for clogging of the coronary arteries and other heart diseases. But now, Technion-Israel Institute of Technology President Prof. Peretz Lavie – a psychologist and one of the country’s leading sleep medicine experts – and his wife and fellow researcher cell biologist, Dr. Lena Lavie, have found that in elderly people, moderate apnea may in fact extend their lives rather than shorten it.

The Lavies’ research, based on the study of 611 individuals with a mean age of 70 and a follow-up period of about five years, has just been published in the Journal of Sleep Research of the European Sleep Research Society. The reasoning has been confirmed separately by German researchers at Heinrich Heine University in Dusseldorf, who published their findings in the journal Chest of the American College of Chest Physicians.

Prof. Lavie has published more than 340 scientific articles and eight books in the field of sleep research, including The Enchanted World of Sleep, which is suited for the layman and translated to 15 languages. Lena, a senior researcher in the Technion, has collaborated with him on sleep research focusing on understanding the cellular and biochemical impacts of the breathing cessations.

Many sleep apnea patients go to bed at night connected to a continuous positive airway pressure (CPAP) device, which is not very comfortable but pushes through a mask pressurized air – insufficient during breathing cessation – under pressure into their lungs. This does not cure sleep apnea but can reduce the complications.

Intermittent hypoxia – the lack of adequate oxygen – initiates a cascade of events involving oxidative stress and inflammatory processes leading to atherosclerosis. But surprisingly, the new research found that in contrast to young and middle-age patients, who showed significantly higher mortality than their counterparts in the general population, elderly patients with mild or moderate apnea showed significantly lower mortality than in the general population.

The researchers suggest that the hearts of elderly sleep apnea patients get blood from a larger number of arteries – called collaterals – that develop by angiogenesis due to the lack of oxygen supply, than the hearts of patients without sleep apnea. This additional blood supply protects them if they suffer a heart attack, the Lavies write.

The Haifa researchers based their hypothesis on previous results from the Haifa group demonstrating that sleep apnea patients have in their blood high levels of a protein called vascular endothelial growth factor (VEGF). This protein is responsible for the growth of new blood vessels, and its production is triggered by a drop in blood oxygen levels.

The Technion team also showed that there are very large individual differences in the effect of hypoxia on the production of this protein. The research group found that individuals who could produce a large amount of protein when exposed to hypoxia had more blood vessels around their hearts in comparison with individuals who could not produce the protein.

Dr. Stephan Steiner and his colleagues from the cardiology department in Heinrich Heine University reported data that provided strong support to the Lavies’ hypothesis. Steiner and his colleagues compared the number and size of the heart collaterals measured by catheterization in patients with and without sleep apnea and reported that patients with sleep apnea had significantly more collaterals than patients without sleep apnea, even though there were no differences between the groups in age, weight, heart condition or use of medication.

The German research in Chest was accompanied in the same issue by an editorial that was written by the Lavies. “If confirmed, these findings may have important clinical implications regarding treatment of the syndrome. Moreover,” they continued, “such findings – if combined with individual gene analysis – may provide new treatment strategies for cardiovascular protection.”

Merck and Portola: Finding a Blood Thinner’s Sweet Spot

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By Ron Winslow

heart“In evaluating an anticoagulant,” says heart researcher Michael Ezekowitz, “it’s all about getting the dose right.”

That’s the next big challenge for Merck and its partner Portola as they prepare to advance the closely held South San Francisco biotech’s drug betrixaban into a large-scale clinical trial in the burgeoning race to develop a replacement for the heart drug warfarin.

Ezekowitz, a cardiologist at Lankenau Institute for Medical Research, Wynnewood, Pa., told a packed auditorium at the annual science meeting of the American College of Cardiology on Monday that a daily 40-milligram dose of betrixaban caused significantly fewer cases of major or clinically important bleeding than standard treatment with warfarin. Bleeding rates were simliar warfarin at 60 and 80 milligrams, said Ezekowitz, who led  the study. Side affects included diarrhea and nausea.

The Phase 2 study tested the medicine in patients with atrial fibrillation, a heart rhythm disorder that afflicts some 2.5 million Americans and carries the risk of blood clots that can lead to a stroke.

Warfarin, a half-century old workhorse anticoagulant from Bristol-Myers Squibb and generic companies, effectively prevents such clots. But patients need regular blood checks and frequent dose changes to prevent life-threatening clots or bleeding episodes.

After decades of frustration in the hunt for an effective alternative that doesn’t require monitoring, the pipeline is now full of promise. Boehringer Ingleheim, Daiichi Sankyo and joint ventures between Pfizer and Bristol-Myers and Johnson & Johnson and Bayer all have compounds in development for a global market that some analysts expect will exceed $10 billion by later in the decade.

Merck and Portola trail most of their rivals at the moment, but they believe features of its compound, including once-daily dosing and the fact that Portola is developing an antitode that could quickly turn the drug off in the event of a dangerous bleed, could be advantages for betrixaban if it reaches the market.

First they have to find the dose that hits the sweet spot between too much clotting and too much bleeding. Will a 40-milligram dose with the favorable bleeding risk be strong enough to effectively prevent clots? That’s one big question Merck and Portola will ponder in the months ahead as they plan a trial they hope will lead to the drug’s approval.

Bill Lis, Portola’s new CEO, indicated one possibility is to move more than one dose into a Phase 3 trial. “It’s clear we have an active drug that is safe and tolerable and ready for the next stage of development,” Lis says.

wsj.com

Two-person Arginetix raises $11M in VC cash

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Big money for small biotech

Baltimore Business Journal – by Julekha Dash Staff

A two-person Lutherville biotech firm has closed nearly $11 million in its first funding round — one of the biggest cash grabs the local biotech industry has seen in years.

Gary Lessing (left) and Dan Berkowitz have Arginetix ready to take its science to human trials

Gary Lessing (left) and Dan Berkowitz have Arginetix ready to take its science to human trials

Philadelphia’s Quaker BioVentures and the venture capital arm of AstraZeneca Group, a pharmaceutical giant, led the funding in Arginetix. The company will use the money to launch its first human clinical trials of drugs that could treat cancer, asthma and high blood pressure in the lung’s arteries.

Venture capital firms say there is a multibillion-dollar market for drugs that treat these conditions, and they’re willing to risk the investment on the potential return.

The money funneled into Arginetix is unusual for an early-stage biotech company that has yet to test its products in clinical trials. Though some biotech companies have landed new investments in recent months, their dollars have been in the $1 million to $3 million range. Getting larger sums in the recession has been tough.

But Arginetix has a few things going in its favor. It might get special designation from the federal government because its drugs could treat rare medical conditions. It also has a CEO who has worked in both the biotech and investment banking industries.

The company expects to test its class of drugs, known as arginase inhibitors, on humans within two years. Showing promising results in early trials may make Arginetix an attractive candidate for a takeover by a large pharmaceutical company — the best hope that biotech entrepreneurs have of getting a big payoff these days.

“It’s a compelling story — we have a target that is novel, a family of compounds that are attractive and a large market opportunity,” Arginetix CEO Gary Lessing said.

The company will likely pursue a drug to treat pulmonary arterial hypertension in its first round of trials, he said. The market for drugs that treat high blood pressure in the lungs is expected to grow from $1 billion to $3 billion by 2016, according to LifeTech Research, a Baltimore venture capital firm that has not invested in Arginetix.

Drugs that treat pulmonary arterial hypertension can receive what is known as “orphan” status from the U.S. Food and Drug Administration, said Dr. Joel B. Braunstein, a cardiologist and CEO of LifeTech Research. The FDA grants that special designation for drugs that treat rare diseases or can treat conditions for which there is currently an unmet need.

A company that develops an orphan drug has the exclusive right to sell it for seven years. Having that protection from competition means investors can safely bet that another company won’t enter the same turf.

If future trials show promising results, Arginetix could be an attractive target for a takeover by a pharmaceutical company, Braunstein said. With a downturn and a weak appetite for initial public offerings, few biotech firms can count on going public for a cash infusion.

One big reason Quaker BioVentures made the investment is because recent tests in lab rats showed promise that the company’s drugs are safe and effective, Quaker Partner Geeta Vermuri said. Quaker also saw that the company’s technology could treat a variety of diseases and therefore lessen the investor’s risk. If clinical trials don’t show promise treating one condition, the drugs could treat another.

Quaker typically invests between $5 million and $25 million and focuses on life sciences firms. Arginetix is its only Maryland investment to date. One of its investments in Greater Philadelphia, BioRexis Pharmaceutical Corp., was bought by Pfizer Inc. in 2007.

Quaker also invested in Arginetix because of Lessing’s vast experience, Vermuri said. Lessing spent six years as chief financial officer of Avalon Pharmaceuticals Inc., a Germantown biotech acquired in May by Massachusetts company Clinical Data. From 1987 to 2001, Lessing led the health care investment banking group at Deutsche Bank Alex. Brown.

Lessing said he and his business partner, Bruce Tomczuk, could secure the money because they showed results on time and under budget. A year ago, they told Quaker and Gaithersburg-based MedImmune Ventures, the venture arm of AstraZeneca Group, that it would use its initial $2.3 million in seed money to evaluate its drug and prove its potential.

The last time MedImmune Ventures invested in a Maryland company was in 2006, when it invested in Gaithersburg’s Sequoia Pharmaceuticals Inc.

“If you under-promise and over-deliver at every point, you have the opportunity to build confidence in your investor group,” Lessing said.

Started in 2007, Arginetix licensed intellectual property from scientists at the University of Pennsylvania and Dr. Dan Berkowitz of Johns Hopkins University. The company has kept its overhead low by remaining small and outsourcing its research rather than investing in expensive lab space, Lessing said. With the new funding, the company will hire five scientists.

Arginetix is still about six years away from producing any drugs, though Lessing notes that it could be acquired by a large pharmaceutical company by then.

But like any young biotech company, Lessing said the company’s success depends on the science.

“You have to prove yourself every day since the result of any experiment is not predictable,” he said.

A Shot at Cancer

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By Alice Park

Back in 1999, two researchers at the National Cancer Institute (NCI) received a long-awaited green light to launch separate studies on cancer care. Six months apart, Dr. Douglas Schwartzentruber and Dr. Larry Kwak began enrolling subjects to test an entirely novel weapon in the war on cancer — one they hoped would bypass the toxic effects of chemotherapy and give patients a new edge in halting the spread of tumors.

 Vaccines enlist the immune system in the battle against cancer. Treatments would begin after surgery and chemo, to prevent relapse.

Vaccines enlist the immune system in the battle against cancer. Treatments would begin after surgery and chemo, to prevent relapse.

Both had the blessings of Dr. Richard Klausner, then NCI director. But even Klausner, a well-respected researcher, had to be persuaded at first. “I came to the NCI being quite skeptical about it,” he says of the new strategy.

And he wasn’t the only one. What Schwartzentruber and Kwak were hoping to do was prove they could vaccinate a patient against cancer — educate a body to, in essence, recognize and round up tumor cells the same way it polices viruses and bacteria. It certainly made good biological sense: the immune system is the body’s built-in defense mechanism, after all, so why not turn it against one of the most ornery diseases around?

The problem, of course, is that a tumor is not exactly a pathogen. What it is, at its core, is a collection of aggressively growing cells that can’t stop dividing. It is not entirely foreign, as a virus is; it does not infect healthy cells, as bacteria and viruses do. Turning the immune system against cancer cells would involve turning the body’s defense mechanisms against a part of itself. Designing a vaccine to do this entails creating the biological version of a stealth weapon encased in a smart bomb equipped with a guided missile.

And that was proving to be a bit too challenging. Nothing that hundreds of researchers in hundreds of trials had attempted had worked. While the vaccine idea made logical sense, the immune system, it seemed, just wasn’t designed to battle cancer this way.

But in June, after nearly a decade of carefully inoculating patients suffering from either advanced melanoma or a type of lymphoma, both Schwartzentruber and Kwak announced positive outcomes of their trials, at the American Society of Clinical Oncology meeting in Orlando, Fla. Their results, along with those of a trial vaccine against prostate cancer and an early candidate against a type of brain cancer, suggest that we might finally be on the way to unleashing the immune system against the disease.

It’s about time. Senator Edward Kennedy’s death after a yearlong battle with brain cancer is only the most prominent reminder that while many current treatments are certainly effective, they can be made even better. Though malignancies are now being caught earlier than ever before and treatments that target and control the disease are more effective than ever before, cancer is still the second biggest killer in the U.S., claiming more than half a million lives each year. Surgery, chemotherapy and radiation can do only so much when tumor cells hide in plain sight and even a single overlooked cell can seed new disease.

That’s where a vaccine-based strategy could make a difference. An immune system trained to recognize the first signs of new or recurrent growth can begin to attack malignancies far earlier than the best scans can detect them. And the latest vaccines incorporate clever new insights into how malignant cells can be tagged, exposed and destroyed. “Understanding how the immune system works is going to play a significant role in our treatment of cancer going forward,” says Dr. Len Lichtenfeld of the American Cancer Society.

It’s not just the biology that is getting better. Researchers are even fine-tuning when to give a cancer vaccine. The latest data from the lymphoma trial, for example, suggest that in some cases, the best time to train the immune system might be during a remission, when the body’s defensive cells are at their strongest. “It’s been a slow evolution, but we are seeing the first inklings that cancer vaccines can work,” says Dr. Steven Rosenberg, chief of the surgery branch at NCI and a cancer-vaccine pioneer who trained Schwartzentruber and Kwak.

When Is a Vaccine Not a Vaccine?

There may be no better example of what is meant by preventive medicine than the strategy of vaccination. A healthy person is given a tiny taste of a virus — flu or polio, say — that’s too weak to cause illness but just enough to introduce the body to the pathogen. If the virus later shows up for real, the immune system is primed and waiting for it.

That’s close to how a cancer vaccine works, but not precisely. Most experts see cancer vaccines as a hybrid of treatment and prevention. While it’s true that the Food and Drug Administration has approved vaccines against cervical and liver cancer, both are actually designed to fight the viruses most responsible for causing the disease, as opposed to targeting cancer itself — human papillomavirus in the case of cervical cancer and hepatitis B in the case of liver tumors.

Using vaccines to prevent nonviral cancers in someone who is disease-free is a whole different matter. For one thing, it’s much more difficult to determine a person’s chance of developing a particular type of cancer than it is to determine the likelihood of being exposed to, say, the influenza virus or chicken pox. What passes for “exposure” in the case of nonviral cancers is a combination of genes and environment and a range of other X factors that can vary from person to person. How do you vaccinate against your family legacy of breast cancer or your constant exposure to secondhand cigarette smoke?

But that doesn’t mean the immune system can’t be exploited in a different way. Cancer vaccines would ideally be used in patients whose disease has already been diagnosed and treated with surgery, chemotherapy or radiation. They would then be immunized as a way to prevent the cancer from coming back and spreading. Such metastases are actually the leading cause of death from cancer. “The charm of working with the immune system is that we can use the body’s own defense mechanisms to possibly get to that last cancer cell or at least create a surveillance system that keeps that cancer under control,” says Lichtenfeld.

Trial by Failure

Before they can seek out these smaller, hidden deposits of tumors, however, cancer vaccines must prove that they can actually target and shrink a cancer’s more conspicuous growths. This, it turns out, is obvious in theory but devilishly challenging to show in reality.

Take melanoma. In 2002 scientists at the John Wayne Cancer Institute in Santa Monica, Calif., thought they had finally figured out a way to turn the immune system against the skin cancer. Instead of trying to activate immune cells with snippets of tumor proteins they had created in the lab, they decided to grind up melanoma tumors and use the malignant slurry to prod the right immune cells into action. The result was Canvaxin, a vaccine against aggressive melanoma that was loaded up with 20 different tumor-specific components of melanoma, teaching the body new ways to recognize the disease. More than 1,500 patients were given the vaccine after being treated with surgery and chemotherapy. In the first five years of follow-up, the shot proved safe and worthy of moving into the most advanced level of human testing. But in April 2005, the scientists and the biotech company they had enlisted to develop the vaccine were forced to stop their studies when it became obvious that the vaccinated patients were not living any longer than the unvaccinated ones. “That put a damper on things,” says Schwartzentruber. “They had what they thought was a promising start, and it was an international, multi-institutional study with a large number of patients.”

In retrospect, Schwartzentruber says, the problem may have been that the vaccine was forced to work alone. Even the most well-sensitized immune system may be fooled by the homegrown nature of cancer, recognizing malignant cells as just another part of the body — which they are — and thus giving them a pass. When the cancer finally grows big enough to represent a real threat, it’s too late.

Schwartzentruber thinks he has a way around that problem. In some trials, after giving his vaccine to patients with advanced melanoma that has spread to other tissues, he adds an immune stimulator called interleukin-2 (IL2) for reinforcement. Alone, the vaccine would not cause any tumors to shrink. The IL2 treatment itself wasn’t very effective either; it shrank tumors in only 10% of patients. But combining the vaccine and IL2 has caused tumors in 22% of patients to regress — a doubling of effectiveness. “This teaches us a lesson: that combinations of biologic treatments are more powerful than their individual components,” says Schwartzentruber.

Kwak and his collaborators, led by Dr. Stephen Schuster at the University of Pennsylvania, see a similar power in pairing. Their vaccine, against a form of non-Hodgkin’s lymphoma known as follicular lymphoma, takes a slightly different, more personalized approach. Rather than relying on a commonly found antigen or snippet of cancer protein to teach the body to recognize the malignancy, they designed each vaccine using individual patients’ specific lymphoma profiles. They then partnered this customized concoction with another immune stimulator, GMCSF. Patients receiving the combination remained in remission on average 44 months after the vaccination, a 47% improvement in disease-free survival compared with those getting the uncustomized vaccine, who stayed in remission for just 30 months.

This study is also the one that yielded the most evidence that the best time to inoculate patients is when they’re in remission from their disease. While Schwartzentruber elected to administer his melanoma vaccine when his subjects were in the most advanced stages of illness, Kwak and his colleagues decided to capture the immune system at its best. They waited until the patients had been in remission for six months after chemotherapy, which rid the body of the bulk of the tumor burden. Give the immune system a break from that life-or-death battle, and it might be better able to do the surveillance work of corralling stray cells that escape the initial treatment. “I envision that vaccine approaches like this could be useful as maintenance therapy,” says Kwak. “We would use chemotherapy and surgery to debulk the tumor and then vaccinate to maintain remission.”

The Riddle of Success

Another way to make a vaccine more effective might be to manipulate the very nature of the tumor, so that it is a more obvious target for the immune system — a little like tying a more colorful fly on a fishing hook. The idea, says Dr. Patrick Hwu, chair of melanoma oncology at the University of Texas’ M.D. Anderson Cancer Center and a member of Schwartzentruber’s team, is to “get the tumor itself to look like a virally infected site, to get the whole immune system going.”

The untreated immune system is not helpless in all of this. Rosenberg has biopsied tumors and extracted immune cells called lymphocytes from patients with advanced cancer and has grown these cells in culture. In a test tube, the lymphocytes are perfectly capable of killing tumor cells. But in the body, for some reason, they can’t seem to stop a lesion from growing. So for melanoma, some researchers are working with a cream that can increase a tumor’s “foreignness” to the immune system, tagging it to look more like an unwelcome virus and less like a familiar self cell. Other groups are testing ways to shut off the immune suppressors that the tumor sends out to hinder the natural seek-and-destroy tendencies of the immune system. That makes sense. Supercharging the immune system while the immune suppressors are still at work is a little like revving a car engine without releasing the emergency brake: in both cases, you’re not going anywhere. And yet most early vaccine efforts have involved stepping on the gas alone.

One other way to get the immune system moving might be, in effect, to replace it with an entirely new one, says Rosenberg. If a vaccine can marshal the body’s defenses to recognize and destroy a tumor, could you rebuild those defenses from the ground up and this time design them so they’ll be especially good at fighting cancer cells?

Rosenberg’s thinking is based on the now familiar strategy of the bone-marrow transplant for leukemia and lymphoma, which are blood- and immune-cell cancers. Radiation is used to obliterate a patient’s cancer-tainted immune cells; those cells are then replaced by a population of new ones harvested from a healthy donor or grown from some of the patient’s healthy cells. Rosenberg refines this method for melanoma by first exposing immune-system cells to tumor cells in a dish, thus “training” them to sprout proteins that target cancer cells, and only then infusing them into patients. Already he has shown that such a fortified mix can cause tumor regression in up to 70% of melanoma patients.

Even that, Rosenberg says, can be improved on. He is tipping the odds further in favor of the anticancer cells by genetically modifying the tumor-fighting T cells so that cancer cells aren’t simply among the ones they recognize but are the only ones they recognize — eliminating the distraction of other infections and allowing the T cells to devote all their energy to the malignancy alone. In June he published results showing that such manipulation can cause regression of tumors in one-third of subjects. “I think the most important progress in using the immune system is not by a vaccine but by using cell-transfer approaches,” says Rosenberg. “Those are looking to be far more effective.”

Measuring that effectiveness will be another challenge. The melanoma- and lymphoma-vaccine studies both tracked only the extent to which tumors regressed and were not designed to document what most cancer experts — not to mention patients — see as the gold standard of any new therapy: survival. Do patients who are vaccinated live longer than those who are not? How do the vaccine’s cancer-controlling powers compare with those of the expanding list of drugs designed to sneak in and halt growing lesions by shutting off their supply of nutrients and oxygen or hampering their growth spurts?

Solving those riddles might be the most formidable challenge yet for the vaccine field. Some experts are already questioning the need for the lymphoma vaccine when a drug, rituximab, exists to control the disease. Kwak points out, however, that in addition to being able to seek out small deposits of tumor cells that even the best-targeted drug therapies might miss, vaccines are generally less toxic. Rituximab, for instance, can lead to viral infections and heart problems and may be toxic to the kidneys. If, as some researchers hope, cancer is ever to become more of a chronic disease like diabetes, which can be managed for life, finding treatments that are safe and effective over many years becomes critical. “The risk-benefit ratio begins to swing more against chemotherapy or targeted agents for long-term maintenance,” says Kwak. “Whereas a vaccine, with a favorable safety profile, is ideal for that kind of setting.”

If that’s true, then this first group of cancer vaccines is well on its way to seeding an entirely new field of immune-based treatments for cancer. “In some way, shape or form, our body repairs cancer cells and ‘prevents’ cancer,” says Lichtenfeld. “If it didn’t, we would have much more cancer than we actually see. How simple it would be for us to take some markers on a cancer cell’s surface and create a vaccine to help the body do what it’s supposed to do.” It’s not simple at all, as it turns out, but it’s an idea whose power and potential certainly make it worth the effort.

Dainippon to buy US drug firm Sepracor for $2.6 bln

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* Japanese will gain big Sepracor U.S. sales force

* Bid is friendly, with both boards approving

* Looking to promote experimental schizophrenia drug

* 2nd-biggest Japanese overseas acquisition this year

* Sepracor +26 pct before Nasdaq halt, Dainippon +1.2 pct (Adds Dainippon president comments)

By Toni Clarke and Yumiko Nishitani

BOSTON/TOKYO, Sept 3 (Reuters) – Dainippon Sumitomo Pharma Co Ltd agreed on Thursday to buy U.S. drugmaker Sepracor Inc for $2.6 billion, giving the Japanese firm a big, local sales force in the world’s largest drugs market.

The deal is the latest in a string of overseas acquisitions by Japanese drugmakers keen to grow outside a mature home market and build product pipelines before key drug patents expire.

Dainippon, Japan’s No.7 drugmaker by revenues, will gain a sales force of 1,200 familiar with central nervous disorders as it looks to promote its experimental schizophrenia drug lurasidone, which has performed well in late-stage trials.

It will also gain Sepracor’s insomnia drug Lunesta, asthma drug Xopenex and an experimental epilepsy drug.

“We anticipate our business will shrink if we focus only on Japan, where medical prices are under pressure,” Dainippon Sumitomo President Masayo Tada told a news conference.

“Even if the U.S. carries out healthcare reform it’s not as if the market is going to halve. It will remain the world’s biggest drug market.”

The deal is the fourth-largest overseas acquisition by a Japanese drugmaker, and the second-biggest this year by any Japanese company.

Dainippon’s shares climbed 1.2 percent in a weaker Tokyo market [.T], with volume at six times the daily average this year. Some analysts said the purchase was the easiest route into the U.S. market, others said it looked pricey and risky.

Dainippon will pay $23 cash for each share, a premium of 27.6 percent on Tuesday’s close before media reports of the deal sent Sepracor’s stock surging to $22.8 on Wednesday. The acquisition cost is roughly equal to Dainippon’s annual sales.

“It’s a very expensive deal for a company of Dainippon Sumitomo’s size and also very risky, given the series of patent expirations on Sepracor’s mainstay drugs in the next few years,” said Credit Suisse analyst Fumiyoshi Sakai.

“Dainippon must be extremely confident in lurasidone, although I have some doubts,” he said, adding the deal would not have been possible without the backing of the Sumitomo Group, which includes Sumitomo Mitsui Financial Group Japan’s third-biggest bank. Dainippon is majority-owned by Sumitomo Chemical.

Aaron Gal, an analyst at Sanford Bernstein, said that based on projections for 2013, the deal values Sepracor at 3.5 times sales, compared with 3.1 times for the average of other specialty pharmaceutical and generic drug industry acquisitions.

It also values Sepracor at 19.4 times EBITDA (earnings before interest, taxes, depreciation and amortisation) compared with an average of 15.1 times for other deals, he said.

“Arguably, Dainippon is buying a U.S. sales force it can leverage to promote its current and pipeline products,” said Gal.

“We are unconvinced that this is the most sensible option for the company given the alternatives of building a sales team internally or acquiring a higher-performing sales team at a more rational price.”

Dainippon said it would raise 200 billion yen ($2.17 billion) in bridge loans and use 50 billion yen in cash on hand for the acquisition.

NEW DRUG CLASS

Dainippon, which sells the hypertension drugs Amlodin and Prorenal, said last month that lurasidone worked significantly better than a placebo in a late-stage clinical trial. It will apply for U.S. approval next year and aims for launch in 2011.

The U.S. market for schizophrenia drugs is worth about 1.3 trillion yen a year, or 10 times the Japanese market, Dainippon’s Tada said.

With annual sales of 264 billion yen, Dainippon has been overshadowed by bigger rivals such as Takeda Pharmaceutical Co and Daiichi Sankyo Coboth of which have made large acquisitions to expand overseas.

Buying Sepracor will allow Dainippon to generate 40 percent of its sales outside Japan, which it now counts on for more than 90 percent of its business. At the same time, its research and development budget will increase by 45 percent to 80 billion yen.

Dainippon’s four mainstay products have patents that have either expired or will expire shortly. But its shares gained 21 percent in the year to Wednesday, bolstered by hopes that lurasidone will do well overseas.

Top-selling schizophrenia drugs such as AstraZeneca’s, Seroquel and Eli Lilly and Co’s , Zyprexa garner annual sales of around $4.5 billion. Other competitors include Johnson & Johnson’s Risperdal and Bristol-Myers Squibb’s Abilify.

Lurasidone belongs to a new generation of schizophrenia drugs known as atypical antipsychotics.

Rival products are Fanapt from Vanda Pharmaceuticals, Schering Plough’s Saphris and Serdolect from Danish pharmaceutical firm Lundbeck .

Sepracor has long been the subject of takeover speculation, and could face generic competition to Lunesta as early as 2012 if a generic drugmaker successfully challenges its patent, which expires in 2014. Xopenex is set to face generic competition in 2012.

Sepracor, based in Marlborough, Massachusetts, had 2008 sales of $1.3 billion.

Financial advisers to Dainippon Sumitomo were Nomura Securities and Thomas Weisel Partners LLC, while JP Morgan Securities Inc and Jeffries & Co advised Sepracor. ($1=92.30 Yen) (Additional reporting by Mayumi Negishi; Writing by Edwina Gibbs, Editing by Ian Geoghegan)

AstraZeneca Medicine Brilinta Emerges to Rival Plavix

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By Michelle Fay Cortez

AstraZeneca Plc’s experimental clot- fighting drug Brilinta beat Sanofi-Aventis SA’s and Bristol- Myers Squibb Co.’s Plavix in a study that also positioned it to compete with a recently approved blood thinner.

Brilinta prevented 16 percent more heart attacks, strokes and deaths than standard therapy with Plavix, the second-best selling medicine in the world with almost $10 billion in annual revenue. Brilinta also unexpectedly reduced the overall risk of early death from any cause by 22 percent, analysts said.

Brilinta’s potency didn’t cause more episodes of serious bleeding, a common complication seen with drugs that ward off heart conditions by preventing blood clots from developing, the research showed. The findings position Brilinta to rival Plavix and Eli Lilly & Co. and Daiichi Sankyo Co.’s Efient for millions of patients suffering from heart attacks or severe chest pain.

“It’s clearly better than we anticipated,” Michael Leacock, an analyst at Royal Bank of Scotland in London, said in a telephone interview. “It certainly seems to be a more competitive product than we would have expected.”

About 1.3 million Americans are hospitalized each year with heart attacks and chest pain known as acute coronary syndromes. While aspirin and Plavix have lowered their subsequent health risks, cardiovascular disease remains the leading cause of death worldwide. Death from any cause was also significantly lower in patients taking Brilinta, according to the results of the study known as Plato.

‘New Standard’

“I think this will become the new standard of care,” said Douglas Weaver, a cardiologist at Henry Ford Hospital in Detroit and a past president of the American College of Cardiology, in an interview. “It’s more rapid, more effective and it appears to be safer” than Plavix and Efient. “I don’t think they could have done much better than they did in this trial,” he said.

The study included more than 18,000 patients in 43 countries. Those in North America may have done worse on Brilinta, a finding researchers couldn’t explain. That raised questions among analysts about future sales in the U.S.

“The North American market is such a big issue in terms of sales,” Leacock said in an interview. “This North American subgroup leaves a little more room for debate.”

Sales Estimates

AstraZeneca faces lower-priced competition on products that generate 62 percent of sales by 2014 and needs Brilinta to help offset the lost revenue. While analyst estimates are sure to rise for Brilinta’s sales, it might not be enough to make the company’s shares more attractive, Leacock said.

“The consensus is already at $1 billion a year,” he said. “Even if you add another $1 billion to AstraZeneca’s sales in 2013, I’m not sure it makes a large difference to the investment case for AstraZeneca.”

AstraZeneca shares rose 6.5 kronor to 334.5 kronor in Swedish trading. U.K. markets are closed today for a holiday. The stock has gained 1.2 percent this year, compared with a 2.1 percent increase in the 17-member Bloomberg Europe Pharmaceutical Index.

Sanofi, which is set to lose patent protection on Plavix in 2011, fell 85 cents, or 1.8 percent, to 47.32 euros in Paris. The shares have risen 6.1 percent. Japan’s Daiichi Sankyo fell 60 yen, or 2.9 percent, to 1,985 yen. Seamus Fernandez, a Leerink Swann analyst, said in a note to clients that he is reducing his Efient sales forecast by $40 million to $55 million this year and by $1.025 billion to $900 million in 2015.

The trial, funded by London-based AstraZeneca, was one of the most eagerly anticipated findings presented at the European Society of Cardiology meeting in Barcelona this week, researchers said. It was simultaneously published in the New England Journal of Medicine yesterday.

Plavix

“Bristol-Myers Squibb and Sanofi-Aventis have not had an opportunity to fully analyze the results of Plato,” Laura Hortas, a spokeswoman for New York-based Bristol-Myers, said yesterday in an e-mail. Plavix is approved for use in a broad group of patients with cardiovascular conditions, while the Brilinta trial focused only on patients who suffer from acute coronary syndromes including heart attacks and chest pain, Hortas said.

The U.K. drugmaker plans to file for approval of Brilinta in the fourth quarter in Europe and the U.S. and hopes to begin selling it next year, said Gunnar Olsson, AstraZeneca’s head of cardiovascular therapy.

Prevent Clumping

Brilinta, Plavix and Efient, which is sold as Effient in the U.S., all work by preventing platelets from clumping together in the blood to form clots. Plavix and Effient, which was approved this year in Europe and the U.S., last for the life of the platelet, or about a week, and are given once a day. Brilinta needs to be taken twice daily, and patients are likely to comply with that regimen, said David Snow, AstraZeneca’s vice president of cardiovascular global marketing.

“You’ve had a heart attack,” Snow said in an interview in Barcelona. “You’re certainly going to be motivated to avoid another one.”

About 30 percent of patients don’t respond well to Plavix. Brilinta’s effects wear off in a few days, making surgery easier for patients who need it.

One in 10 patients rushed to the hospital with chest pain or heart attacks actually need by-pass surgery, said Christopher Cannon, a cardiologist at Brigham and Women’s Hospital in Boston. If they are given Plavix or Efient, they must wait five days before getting the surgery, he said.

“It’s a huge conundrum, a headache for doctors, hospitals and patients,” he said in a telephone interview. “This opens the door. It’s a neat differentiating factor that could open up treatment options.”

Major Bleeding

In the study, 9.8 percent of patients taking Brilinta for a year after being treated for a heart attack or worsening chest pain suffered another heart attack or stroke, or died from vascular disease, compared with 11.7 percent of those given Plavix. Overall, 4.5 percent of Brilinta patients died from any cause, significantly fewer than the 5.9 percent of Plavix patients who died.

The rates of major bleeding were similar between the two groups, occurring in 11.6 percent of those on Brilinta and 11.2 percent of those on Plavix. Fatal bleeding in the brain was more frequent in those given Brilinta, while fatal bleeding in other areas was more common with Plavix. Brilinta was linked to more serious bleeding in the brain and stomach of patients who didn’t undergo bypass surgery, the study found.

“You have to keep the big picture,” said Jay Horrow, AstraZeneca’s executive director of clinical development. Brilinta had fewer patients with fatal bleeding overall than Plavix, he said.

To contact the reporter on this story: Michelle Fay Cortez in London at mcortez@bloomberg.net