OSI Pharma, Genentech Gain on Cancer Drug Data

Shares of OSI Pharmaceuticals(OSIP Quote) and Genentech (DNA Quote) climbed Monday after the companies said their experimental drug Tarceva slightly improved the length of survival of patients with advanced pancreatic cancer.

The test said patients given Tarceva and a standard chemotherapy drug called gemcitabine had a modest but statistically significant increase in survival vs. patients given the chemotherapy drug plus a placebo. The median survival for the Tarceva patients was 6.4 months; the median survival rate for the control group's patients was 5.9 months. The one-year survival rate in the Tarceva group was 25.6% vs. 19.7% in the other group.

The clinical trial represents the third and final phase of clinical testing before a drug is submitted to the Food and Drug Administration for approval.

Monday's announcement sent shares of Melville, N.Y.-based OSI up $5.43, or 8.7%, to $68.03. The stock climbed as high as $69.28. Shares of South San Francisco, Calif.-based Genentech added $1.80, or 3.5%, to reach $53.80.

The results illustrate the potential for Tarceva as a versatile cancer fighter. The companies in July submitted an application to the FDA seeking approval for Tarceva as a treatment for patients with advanced non-small lung cancer who have not responded to at least one standard chemotherapy treatment. The companies' partner in developing Tarceva is the Swiss drug giant Roche.

"These data are important in that they open the door to a completely new approach in the treatment of pancreatic cancer, a disease in which currently only 20 percent of patients survive one year after diagnosis," said Dr. Hal Barron, Genentech's chief medical officer.

"The results represent an important demonstration of Tarceva's activity beyond non-small-cell lung cancer," said Colin Goddard, chief executive of OSI.

The study was sponsored by OSI and coordinated by the National Cancer Institute of Canada's clinical trials group.