Elan May Back Out of Development of Colorectal Cancer Drug

A California biotechnology company says it will not be able to proceed with a phase II trial of the colorectal cancer drug NB1011 and may have to shut down if troubled Irish drugmaker Elan Corp. is allowed to back out of a joint venture agreement.

NewBiotics, which has treated 19 colorectal cancer patients with NB1011, is seeking an injunction to force Elan to provide $ 10 million in loans that it claims is owed under the 2001 agreement.

Elan announced this summer that it would liquidate assets to raise at least $ 1 billion to pay off debts, and a spokesman said this week that a "large portion" of its 55 joint ventures were being "dissolved."

NewBiotics said in court docoments that it has spent $9 million in developing NB1011, and was assured as late as June that Elan intended to continue to development of the drug, which targets the enzyme thymidylate synthase (TS).

Earlier this year, Dr. Mark Pegram of UCLA, which was conducting preliminary trials, said "NewBiotics' NB1011 is one of the most promising drug candidates to enter the clinic I've seen." (See earlier Colorectal Cancer Week story).

Other Sources: San Diego Union-Tribune