UK biotech company Antisoma could launch its first cancer treatment in 2005, a milestone that could give a major boost to the company's growth and future earnings.

The company's announcement that its experimental ovarian cancer treatment R1549 had entered phase III human trials is significant, as only a few European biotech companies have so far successfully brought a product to market.

Commenting on the development, Antisoma chairman Dr Barry Price said: "The pivotal phase III study of R1549 in ovarian cancer is now expected to finish between December 2003 and February 2004. Trial results are expected to be announced during the first six months of 2004, after processing of data from the trial.

"Together with our co-development partner, Roche, we are taking steps to ensure that we are well placed to file for approval on receipt of a positive result," Dr Price added.

In November 2002 Antisoma signed a broad collaboration agreement with Roche to develop and commercialise products from Antisoma's pipeline.

Antisoma licensed the marketing rights to R1549 to Roche, along with most of its other experimental treatments, in exchange for royalties on sales. Analysts ING forecast peak sales of £180 million for the drug, of which Antisoma will receive 16% in royalties.

Anticipating the development, Antisoma revenues leapt from £400,000 to £5 million on the back of a £2.2 million upfront cash payment from Roche. Pre-tax loss was reigned in from £3 million to £212,000 and loss per share decreased to 0.1p from 1.5p.

Antisoma also recently acquired additional royalty rights for R1549 from Cytogen (at a cost of £300,000) that should also increase net income from future sales of the product.

The only reported setback was the discontinuation of AS1403 (formerly TheraFab) after a study showed that, although it successfully targeted tumour cells, the therapeutic product in its current form would have delivered unacceptable levels of radioactivity to other tissues. The company has decided not to invest resources in solving the problem, and will divert funding to other projects.

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