Corixa cancer drug debuts
Corixa and its partner GlaxoSmithKline have introduced their new cancer drug, Bexxar, to the market. Although they didn't project how many patients will take it, the price has been set — $26,000 a patient, wholesale.
The Seattle biotech company described the progress of Bexxar, its first approved cancer drug in the United States, in its second-quarter financial report. Investors liked what they heard: Corixa stock rose 12 percent in after-hours trading.
Bexxar's introduction comes a month after it won Food and Drug Administration approval. Corixa Chief Executive Steve Gillis said the two companies are now focusing on building the Bexxar business by training 200 clinical centers on how to use it, raising awareness among doctors and patients, and nailing down reimbursement from insurance companies and from Medicare as soon as Oct. 1.
Bexxar's price is similar to one of its competitors, Zevalin, a targeted lymphoma treatment from Idec Pharmaceuticals. Both drugs, the first of a new class, use genetically engineered antibodies that zero in on cancer cells and carry radiation for added potency..
Kevin Lokay, vice president of oncology for GlaxoSmithKline, said Bexxar's price is a reflection of what patients are willing to pay for a chance at long-term remissions, which were shown in clinical trials.
"The price is derived based on the value of the therapy," Lokay said.
Financially, Corixa isn't counting on Bexxar to change its world this year. The company stuck to previous forecasts that it will take in $50 million to $60 million in revenue and pay $130 million to $140 million in operating expenses. Any income this year from Bexxar would be split evenly as part of a joint venture between the two companies.
Lokay reiterated that GlaxoSmithKline, the world's No. 4 pharmaceutical company, is willing to spend money to make Bexxar a success.
Separately, Gillis said Corixa may use some of the money it raised from investors in June to buy a stake in another cancer drug. Some have criticized the company for raising the cash and watering down the value of its stock.
Paul Latta, an analyst with McAdams Wright Ragen in Seattle who owns Corixa stock, said the notion of buying another drug is intriguing, but otherwise there were no surprises from the company.
"They're doing what they said they were going to do," Latta said.
Luke Timmerman: 206-515-5644 or ltimmerman@seattletimes.com
Corixa results | |||
Figures in parentheses are losses | |||
% | |||
2nd qtr | June 30, 2003 | 2002 | Chg |
Profit | ($20,949,000) | $5,247,000 | |
Per share | (0.41) | 0.13 | |
Sales | 20,009,000 | 13,886,000 | +44.1 |
First half | |||
Profit | ($39,920,000) | ($171,669,000) | +76.7 |
Per share | (0.79) | (4.12) | +80.8 |
Sales | 29,134,000 | 29,452,000 | -1.1 |