UPDATE 1-Poniard says cancer drug shows favorable results

* Picoplatin suggests lower colon-cancer nerve-damage risk

* Side effects include lower platelets, white blood cells

* Suggests greater ability to cut prostate-cancer marker

* CEO aims for pivotal trials next year vs both cancers

* Shares down less than 1 percent

By Ransdell Pierson

NEW YORK, May 28 (Reuters) - Poniard Pharmaceuticals Inc (PARD.O) said on Thursday that its experimental drug picoplatin showed favorable results in mid-stage trials against advanced colorectal cancer and advanced prostate cancer, setting the stage for possible late-stage studies in 2010.

The tiny U.S. biotechnology company has already said it plans later this year to seek U.S. regulatory approval of the medicine as a treatment for small-cell lung cancer. Picoplatin is meant to be as effective as current platinum-based cancer drugs, including Sanofi-Aventis' (SASY.PA) blockbuster Eloxatin (oxaliplatin), but with considerably less nerve toxicity.

The Phase II colorectal cancer trial described on Thursday involved 101 patients with advanced cancer who had not received prior chemotherapy.

One group received Eloxatin along with two other standard treatments, 5-fluorouracil and leucovorin. The three drugs, known as the FOLFOX regimen, are the current gold standard of treatment against metastatic colorectal cancer.

Another group of patients instead received picoplatin every four weeks alongside 5-fluorouracil and leucovorin.

Symptoms worsened within seven months among the average patient taking the Eloxatin regimen, which Poniard said was similar to the 6.8 months for those taking the picoplatin combination.

About three-fourths of patients in both groups achieved disease control, as judged by stable disease or reduction in tumor size.

Poniard said only 29 percent of patients receiving the picoplatin combination experienced neurotoxicity -- such as uncomfortable tingling of fingers and toes -- compared with 60 percent of those treated with the Eloxatin regimen.

Moreover, none of the picoplatin-treated patients experienced severe neurotoxicity, compared with 16 percent of those taking Eloxatin, Poniard said.

"This data suggests activity (against cancer) is retained, but toxicity is improved by substituting picoplatin for Eloxatin," said Dr. Richard Goldberg, a University of North Carolina oncologist who is a consultant for Poniard.