French firm scales up HDL cholesterol drug tests

* Cerenis Phase II drug study aims to show plaque removal

* Infused drug vies for share in high-profile research area

By Ben Hirschler

LONDON, March 14 (Reuters) - French biotech firm Cerenis Therapeutics raised its bet on a new drug to boost "good" HDL cholesterol with the start of a large mid-stage trial designed to show removal of plaque from clogged arteries.

The newly launched Phase II clinical study, involving more than 500 patients, will be closely watched by several major pharmaceutical companies that are also pursuing novel treatments targeting high-density lipoprotein, or HDL, cholesterol.

Boosting HDL is seen by some experts as the next big thing in heart medicine, although concrete evidence that the approach will save lives is so far lacking.

HDL works like a biological garbage truck, removing excess levels of artery-clogging low density lipoprotein (LDL) plaque for elimination in the liver.

Late-stage clinical trials with new pills designed to boost HDL are already being conducted by both Merck & Co (MRK.N) and Roche AG (ROG.VX), and investors view compounds from both companies as potential multibillion-dollar sellers.

Cerenis takes a somewhat different approach with its lead product CER-001, which mimics naturally occurring HDL and is being given in the Phase II trial as a series of six weekly infusions to patients who have recently suffered a heart attack.

Because CER-001 behaves just like natural HDL, Cerenis Chief Executive Jean-Louis Dasseux believes it will prove highly effective and better than earlier HDL mimetics from CSL (CSL.AX) and Esperion.

The new study, involving patients in the United States, Canada and Europe, will use ultrasound to measure reduction of plaque levels in coronary arteries, with results due in the second half of 2012.

Cerenis has raised 117 million euros ($163 million) since its inception in 2005, enough to last it until the beginning of 2014, and Dasseux said his company would take a pragmatic approach to partnerships and future financing, including a potential stock market float.

"We are planning to go all the way to the market with CER001 but we will look at partners if that is in the best interest of our shareholders," he said in a telephone interview.

"There are multiple options. We believe that as soon as we have demonstrated that we could reduce plaque then there will be no problem to secure more financing, either by an IPO or doing a deal with a Big Pharma (company) or raising more (private) money."

Cerenis is also working on experimental medicines that could be taken longer term to boost HDL, including CER-627, a fixed-dose combination of niacin and aspirin. (Editing by David Holmes) ($1=.7177 Euro)