Negative trial results rock Immunex as Enbrel dropped for CHF

Immunex has decided not to continue with its Phase II/III trials programfor Enbrel (etanercept) as a treatment for chronic heart failure due to insufficient evidence of efficacy. The setback led to a near-halving in Immunex' share price from $18.87 to $9.88 in after-hours trading on the day of the announcement (March 22), exacerbated by the additional news that Immunex' asthma drug Nuvance (soluble interleukin-4 receptor) had disappointing results in two trials. At the start of trading the following day, Immunex opened at $11.06.

In a conference call, Immunex said it had decided to discontinue the Enbrel program after the independent data and safety monitoring board for the Phase II/III studies (RENAISSANCE and RECOVER) deduced from interim analyses that primary efficacy endpoints would not be met.

Enbrel is already on the market for the treatment of rheumatoid arthritis, and achieved sales of $652 million in 2000. Last month, the company issued 2001 sales estimates of $750 million, lower than expected because of production problems, but the CHF indication had been tipped to add around $1 billion to annual turnover at peak.