STOCKS NEWS EUROPE-Roche down; FDA staff query cancer drug

Fri Jul 16, 2010 9:22am EDT

Roche (ROG.VX) stock tumbles more than 4 percent after U.S. Food and Drug Administration briefing documents spark concern the Swiss drugmaker's cancer treatment Avastin may be no longer be used to treat breast cancer in the United States.

"Today, the FDA briefing documents ahead of the Avastin advisory panel were released. It is clear the FDA is unimpressed with the efficacy in AVADO and RIBBON1 (trials)," analysts at Berenberg Bank say.

"As a result there is a significant probability the breast cancer indication is withdrawn in the U.S.," the analysts say.

Roche stock is trading 4.5 percent lower, underperforming a 1.6 percent drop in the European healthcare sector .SXDP.

"Market participants are very nervous ahead of U.S. FDA's panel meeting concerning Avastin in metastatic breast cancer...sales of about 1 billion Swiss francs ($958.8 million) are affected," one Zurich-based trader says.

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Reuters Messaging rm://katie.reid.reuters.com@reuters.net ($1=1.043 Swiss Franc)

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