Immtech says pneumonia drug program on hold
(Recasts, adds details, share movement)
Dec 26 (Reuters) - Immtech Pharmaceuticals Inc IMM.A said its developmental program for an experimental drug to treat pneumonia and sleeping sickness was placed on hold, slicing the company's market value by half.
Immtech shares plummeted to their lowest in four years and were trading down $2.95 at $2.90 in afternoon trade on the Nasdaq. Earlier in the session, they touched an intraday low of $2.55.
The measure was taken after "abnormal laboratory values" were seen in several volunteers following treatment in a safety study conducted in South Africa, Immtech said in a statement.
The study was to collect additional safety data regarding the drug, pafuramidine, which is currently in late-stage trials as a treatment of pneumocystis pneumonia and African sleeping sickness, the company said.
The study volunteers, dosed with pafuramidine or a dummy drug, are under observation for any changes in the status of their liver function, it said.
"This evaluation will continue until patients stabilize or return to baseline status," Carol Olson, senior vice president of pharmaceutical development at Immtech said.
The clinical hold may be released after the U.S. Food and Drug Administration has received satisfactory data regarding the safety of pafuramidine, Olson said.
The compound, codenamed DB289, was granted orphan drug status for both diseases by the U.S. FDA, under which the company has a seven-year market exclusivity upon final approval. The treatment also has orphan drug status for malaria.
An orphan drug status is given to treatments for diseases that affect a relatively small number of patients.
(Reporting by Varsha Tickoo in Bangalore; Editing by Gopakumar Warrier)
((varsha.tickoo@reuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging:sharangdhar.limaye.reuters.com@reuters.net)) Keywords: IMMTECH/DRUGTRIAL
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