Roche Holding AG has suffered a setback, ending a study of an experimental lung cancer drug due to a failure to help patients with the disease. The drug was seen as a potential big seller, given the limited number of treatment options for the disease.
According to Roche, the world's largest maker of cancer drugs, the recommendation to end the study of the drug came from an independent data monitoring committee who said the drug wasn't seen to work in patients with non-small cell lung cancer when combined with lung cancer pill Tarceva in late-stage studies.
Roche said it was examining what the study's results mean for the drug's clinical program, called onartuzumab or MetMab, and was also looking at options for lung cancer treatment.
"These results are disappointing because because new options are needed for patients with lung cancer, the most common and deadly cancer worldwide," said Sandra Horning, Roche Chief Medical Officer and Head of Global Product Development, in a statement Monday. "We remain committed to helping patients with lung cancer and are studying several investigational medicines in this disease."
Roche did not say who was on the data monitoring committee, but groups such as those are often comprised of doctors and perform their work in conjunction with patients and hospitals.
Despite the setback, analysts at private bank J. Safra Sarasin said any fall in Roche's stock would be limited due to the fact that the drug wasn't seen as a major contributor for the company this year.
The news follows a setback for Roche's schizophrenia drug bitopertin. Six weeks ago Roche said the drug did not meet its main goal in two late-stage studies. At a June medical conference on cancer treatments, data on the company's breast cancer drugs Kadycla and Perjeta is expected to be revealed.
Roche stock hit an all-time intraday high on Friday, trading 2.1 percent lower on Monday and falling behind by 1.5 percent in the European healthcare sector.
The company is planning on developing "follow-on" medicines to replace or rejuvenate older treatments. It hopes that a strong reinvigoration of these products will help defend its market share pending the arrival of copycat versions of biotech drugs known as biosimilars.
About a month ago investors were guessing how Roche would spend its large cash stock following a lower-than-expected dividend payout, which some analysts saw as a sign that the company might be holding onto its cash for deals.
