UPDATE: Phytopharm Shares Soar On Early Cogane Promise
14 Oktober 2009 - 5:18PM
Dow Jones News
Shares in drug maker Phytopharm PLC (PYM.LN) more than
quadrupled Wednesday after it said its experimental Parkinson's
disease treatment Cogane showed promise in two early-stage
studies.
Phytopharm said a study funded by the Michael J. Fox Foundation,
a Parkinson's research charity founded by the Hollywood actor,
showed use of Cogane led to a 43% reduction in Parkinson's symptoms
among monkeys given a drug to replicate those symptoms.
This type of study in monkeys is considered the gold-standard
model for assessing experimental Parkinson's medicines before
testing them on humans, according to Jonathan Brochtie, a senior
scientist at Toronto West Hospital who conducted the study.
"Cogane holds the promise to be the first in a new class of
treatments," he said.
A second study in a small number of healthy human volunteers
showed Cogane was safe and also demonstrated some evidence of
pharmacological activity, Phytopharm said.
The firm now plans a phase II clinical study of Cogane in
patients next year.
At 1435 GMT, shares in Phytopharm were 18.87 pence higher at 25
pence, making it the biggest riser in a 0.5% higher FTSE Fledging
index.
Cogane is far from starting the big human trials needed to win
regulatory approval. But Paul Cuddon, an analyst at Phytopharm's
broker KBC Peel Hunt, said the results of these trials show real
promise because this type of primate trial has been shown to be
"highly predictive" of a similar response in humans. He rates the
stock "buy" and Wednesday upped his price target to 50 pence from
25 pence.
It has been a tough year for Phytopharm. The stock has
languished ever since a planned collaboration with Unilever NV
(UNA.AE) to develop a Slim Fast diet drink based on the hoodia
plant was called off last November.
Robin Davison, an analyst at Edison Investment Research, said
Wednesday's share price rise shows investors are still interested
in Phytopharm.
"The company has shown it still has a drug, where previously
people had written them off," said Davison.
It might also signal renewed interest in the U.K. small-cap drug
sector, which has suffered from a dearth of funds and several
company failures, he added.
Company Web site: www.phytopharm.com
-By Jason Douglas, Dow Jones Newswires; 44-20-7842-9272;
jason.douglas@dowjones.com