Avant reports infectious joy but humble heart news

To give the good news first, Avant revealed that it will get a $40 million royalty payment from GlaxoSmithKline now the company’s co-developed vaccine Rotarix has gained approval in the EU for the prevention of gastroenteritis caused by rotavirus in children.

In May 2005, Avant entered into an agreement whereby an affiliate of Paul Royalty Fund (PRF) purchased an interest in the net royalties Avant will receive on worldwide sales of Rotarix. The terms of the agreement with PRF include an upfront unconditional payment of $10 million previously received by Avant, a $40 million milestone payment on product launch in the European Union, and between $9 million and $11 million on product launch in the US, depending on the date of the launch.

Under the PRF agreement, Avant retains 50% of the GSK $4 million milestone payment triggered by the European approval, with the balance payable to PRF and Cincinnati Children’s Hospital Medical Center.

While this news is clearly a boost to Avant, the company faired less well in its cardiovascular undertakings. Avant’s lead complement inhibitor TP10 failed to meet the primary endpoint in a phase IIb study in female subjects undergoing high risk cardiac surgery utilizing cardiopulmonary bypass (CPB).

The objective of this female-only study was to assess the safety and ability of TP10 to reduce the incidence of death and heart attack that occurs after cardiac surgery in female patients on CPB.

A previous phase II study with TP10 in patients on CPB had demonstrated statistically significant efficacy in males but not in females, so the current study was designed to further assess the safety and efficacy of TP10 in females.