Genesis plays down trial speculation

By Phil Boeyen, ShareChat Business News Editor

Monday 29th January 2001

Biotech company Genesis Research & Development (NZSE: GEN) is trying to dampen speculation over trial result announcements for its psoriasis treatment.

The treatment, called PVAC, has been undergoing Phase II clinical trials in the US, Philippines and Brazil, for potential approval by the US Food and Drug Administration.

The Phase II trials were expected to be completed by the end of last year, although the treatment will have to undergo yet another set of trials before the product can be marketed and sold.

Genesis shares have been rising in recent days and while the company has issued a statement saying the results of the latest FDA trials are not yet available, it does not say when they will be.

The PVAC psoriasis treatment is jointly owned by Genesis and Nasdaq-listed Corixa Corporation, which last year brokered a licensing deal with US pharmaceutical firm Medicis estimated to be worth well over $200 million.

Under the deal revenue will be shared on a pro-rata basis between Corixa and Genesis. However prior to paying Genesis, Corixa will pay a percentage of revenue received related to the potential product to UK company SR Pharma, Corixa's licensor for certain intellectual property related to PVAC treatment.

Corixa has also sold the Japanese commercialisation rights for PVAC to a pharmaceuticals company there, and is seeking to sell marketing rights in Europe and the rest of the world.

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