Transgene sees cancer deal this summer

By Caroline Jacobs and Noelle Mennella

PARIS (Reuters) - Transgene (TRNG.PA) expects to strike a worldwide partnership agreement this summer for lung cancer vaccine TG4010, a possible blockbuster, that could speed up the French biotech's plans to become a pharmaceutical group.

Next to advanced non-small cell lung cancer, TG4010 could work on several other cancer types like prostate and breast cancer, possibly making it a rival to Roche's (ROG.VX) Avastin.

Chief Executive Philippe Archinard told Reuters that generally upfront payments for this type of product, which has completed mid-stage trials, could be 50 million euros and that royalties on future sales could be as high as 1 billion euros.

"We are well-advanced in our talks, with fewer than five companies," Archinard said at the Reuters biotech small- and mid-cap summit, adding they were big in cancer.

"We are looking for a global partner ... who will need to develop this product in more indications."

Transgene had recently concluded talks with the U.S. Food and Drug Administration about the further development of TG4010 and would "soon" report on its findings, he said. Meetings with national health regulators in Europe were slated for this month.

TG4010 would be Transgene's first marketed product if it wins approval from healthcare regulators.

Its marketing could begin in 2014.

Positive mid-stage clinical trial results confirmed longer survival for patients who were given TG4010. TG4010 targets a protein known as MUC1, which is also found in breast, prostate, kidney, pancreatic and other cancers.

Transgene develops vaccines against cancer and infectious diseases. Its technology is based on the transfer in the body of treatments with genes able to restore the capacity of the immune system to fight diseases by killing abnormal or infected cells.

NO STRANGERS

Roche and Transgene are no strangers. Since 2007 they have been jointly working on a vaccine, TG4001/R3484, against diseases caused by the human papilloma virus, the world's most common sexually transmitted disease, such as cervical cancer.

In 2008 Transgene and Roche decided to launch a larger Phase IIb trial to strengthen the product's profile before it moves into final Phase III trials. Roche is progressing with the trial as expected: "Everything is on track," Archinard said.

He agreed with analyst estimates the vaccine could yield sales of 350 million to 750 million euros.

Transgene was "making good progress" with its hepatitis treatment, TG4040, Archinard said. Mid-stage clinical trials, which the company plans to conduct on its own, could begin as early as at the end of this year, he said.