Curis opts out of Genentech Hedgehog alliance

Curis, a USA-based drug development company focused on cancer, neurological and dermatological disease indications, has decided to stop developing a basal cell carcinoma drug candidate with biotechnology major Genentech. The move follows a halted Phase I clinical trial of the drug and a decision by the companies not to move forward with the molecule in its current formulation.

Unsurprisingly, investors took Curis' move as a lack of confidence in the drug and on the day of the announcement, September 1, shares in the Nasdaq-listed firm dropped 4.8% to $1.20, while Genetech stock fell $0.37 to $82.15.

Although data from the Phase I trial revealed no significant safety concerns in four weeks of topical treatment, the observed clinical and histological clearance of the basal cell carcinoma was far less than anticipated. The recent results from a final segment of the study showed that the molecule in its current formulation did not downregulate the targeted pharmacodynamic marker in this tumor, one possible explanation being that the drug candidate did not adequately penetrate human skin.