Swiss biotech group Addex Pharmaceuticals' said its lead drug candidate met its main target in a mid-stage clinical trial in heartburn, potentially paving the way for a lucrative partnering deal.
Analysts say positive data on ADX10059 sets the stage for a deal with a bigger drugmaker, which would provide much-needed funds for Addex, a start-up company that does not yet have a product on the market.
"With good phase IIb data Addex's next step is to license the drug to a larger pharmaceutical company. We reckon this process has already started, thus would expect a deal in 2010," said Andrew Weiss, analyst at Swiss bank Vontobel.
Addex shares had jumped 16 percent to 37 Swiss francs by 0821 GMT on Monday, compared with an almost flat European healthcare sector .SXDP.
In a Phase IIb trial, the drug increased the number of symptom-free days fivefold when used as a monotherapy in gastroesophageal reflux disease (GERD), which causes heartburn, the company said on Monday.
Drug discovery groups like Addex are aiming to match the success of Actelion (ATLN.VX), which has developed its own billion dollar selling drug, but many have fallen by the wayside as medicines fail to live up to potential and cash runs short.
The problems of such small start-up biotechs are shown by Addex's stock, which had lost 16 percent this year before Monday, underperforming a stronger European sector.
Source: reuters.com
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