Genentech pulls out of pimagedine deal

Genentech has discontinued its support for Alteon's diabetic nephropathytreatment pimagedine in the wake of the disappointing clinical results from the ACTION trial of the drug (Marketletter December 7, 1998). Genentech has also withdrawn from the two companies' discovery and research collaboration on second-generation advanced glycosylation endproduct inhibitors. Pimagedine, as well as other future AGE-formation inhibitors, were licensed to Genentech in 1997.

A spokesman said the two companies had invested around $100 million on pimagedine. Alteon and Genentech remain in negotiations for a separate collaboration, it was noted.

Alteon has said that despite Genentech's withdrawal, pimagedine is not a dead product: "our medical consultants and clinical advisors have advised us to continue evaluation of this compound." The company notes that while the drug failed to show efficacy in the primary endpoint of the ACTION study, some activity was shown on secondary measures, and Alteon is planning to meet with the US Food and Drug Administration to discuss future development plans.