The share of ModiGene Inc. (Bulletin Board: MODG) has risen over 50% in the past few days to close at $1.55 yesterday, giving a market cap of $55 million. The rise followed the success of a Phase III clinical trial by Schering-Plough Corp. (NYSE: SGP) of a hormone that derived from the same peptide that Modigene is using for its treatments.
The investors giving the boost to ModiGene have apparently concluded that if Schering-Plough's treatment works, so will ModiGene's treatments. Schering-Plough's trial was for a long-acting fertility hormone corifollitropin alfa (FSH-CTP). FSH-CTP uses the naturally occurring CTP peptide to extend the duration of action of the hormone. Modigene is using the same naturally occurring CTP peptide to extend the duration of action of other therapeutic proteins and peptides.
The CTP technology used by both Schering-Plough and ModiGene is licensed from Washington University of St. Louis. Schering-Plough has a license for use only with four endocrine hormones, while ModiGene has an exclusive license for use with all other proteins and peptides. Modigene is currently applying the CTP technology to extend the duration of action of human growth hormone and interferon beta, with the goal of reducing the number and frequency of injections required to treat patients requiring continual injections of these proteins.
Modigene CEO Dr. Avri Havron said, "We believe these positive results provide independent support of our own plans for clinical trials of Modigene's CTP-enhanced versions of human growth hormone and interferon beta that we intend to initiate next year."
Modigene's Human growth hormone (HGH) CTP and IFN-Beta-CTP for the treatment of multiple sclerosis are in late preclinical development. Human trials are scheduled to begin next year. The company notes that the markets for its therapies, which currently have no available commercial long-acting versions, are estimated at $2.2 billion for HGH-CTP and $4.3 billion for IFN-Beta-CTP.
Teva vice chairman Dr. Philip Frost invested $15 million in ModiGene 18 months ago, and led its merger with a stock market shell.
Published by Globes [online], Israel business news - www.globes-online.com - on July 14, 2008
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