Enzon stops cancer program, reports Q2 loss

Pegamotecan is a PEGylated cytotoxic drug of the topoisomerase I inhibitor class. The company’s decision to discontinue the drug’s development program is based on an interim analysis of the data from a phase IIb trial in patients with gastric or gastroesophageal cancers whose disease progressed following prior chemotherapy.

Based on a strategic analysis of the drug’s potential investment return versus costs, the company has also decided not to actively pursue other potential indications for Pegamotecan.

Enzon now plans to redirect this R&D investment to advance other products within its pipeline and pursue other opportunities with greater potential.

In financial news, Enzon reported results for the quarter ended December 31, 2004, the second quarter of the company’s fiscal year (FY) 2005. Enzon reported adjusted net income of $1.3 million or $0.03 per diluted share for the second quarter of FY 2005, versus adjusted net income of $2.3 million or $0.05 per diluted share for the second quarter of FY 2004.

The decrease in adjusted net income versus the prior year was primarily due to a $3.7 million decline in sales of its antifungal Abelcet and a $1.5 million decline in royalties, which are predominately made up of royalties from sales of hepatitis C treatment Peg-Intron.

The company also received a blow recently with its Inex Pharmaceuticals co-developed oncology treatment, Marqibo, in non-Hodgkin’s lymphoma. After increasing its investment by $1.5 million in the second quarter primarily for costs relating to Marqibo, Enzon was informed of Inex’ receipt of a ‘not approvable’ letter from the FDA in January 2005. This decision was also based on phase IIb clinical trial data. Enzon and Inex are currently evaluating the next steps for this product.