Biotech Mailbag: Epix Pharmaceuticals

Epix and partner GlaxoSmithKline (GSK) are currently running two larger phase IIb studies to flesh out more robust data on PRX monotherapy and PRX-Aricept combination treatment. I think it best to wait for these data before making any predictions about the drug's prospects.

It should be noted that Epix, at about $1.60 a share, is not exactly baking in a lot of upside for PRX or for anything in the company's pipeline. Investors are skittish because Epix seems to be in a bit of disarray these days. Questions remain about the future of Vasovist, the company's long-delayed MRI contrasting agent. (On Thursday, Epix re-acquired full commercial rights to Vasovist from German drug firm Bayer.) Late last month, Epix's CEO resigned, replaced on an interim basis by an outside consultant until a new CEO can be found.

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While I was gone, Cell Genesys (CEGE) blew up. This prompted several emails, including this one from Doug P.

"Cell Genesys -- you were right on. Is this curtains for GVAX and Cell Genesys?"

Last week, Cell Genesys announced that it was halting a phase III study of its GVAX prostate cancer vaccine due to a higher number of deaths in GVAX-treated patients compared to the control arm. The stock fell about 70% to around 80 cents a share. Ouch.

I've never been a Cell Genesys fan because I think the company's approach to cancer immunotherapy is fundamentally flawed. I discussed my issues with the GVAX technology previously. (Just ignore all the happy talk about Dendreon (DNDN) in that column. Ahem.) More recently, of course, I've been bearish on the company and the prospects for the GVAX prostate cancer vaccine despite a partnership with Japanese drug maker Takeda.

So, color me decidedly unshocked by the company's recent setback.

Cell Genesys put a halt to the VITAL-2 study, which was testing the combination of GVAX and the chemo drug Taxotere against Taxotere on its own. Still under way is the VITAL-1 study, which pits GVAX against Taxotere. Cell Genesys backers, those who remain, are now putting all their chips on a positive outcome from VITAL-1.