PRODUCT SETBACK AT THE LIPOSOME CO

US liposome encapsulation specialist The Liposome Company has announced that it will not continue with its clinical trials program for Maitec (liposomal gentamicin) as a treatment for Mycobacterium avium intracellulare infection in AIDS patients, citing economic reasons. The company insists the quality of the product is not in doubt.

Prior to the announcement, Maitec was in a Phase II study in the USA, and a Phase III study in Europe was ongoing, but the company has now confirmed that all development of the product has been "suspended." TLC has explained the suspension as a redirection of valuable resources aimed towards getting ABLC (liposomal amphotericin B), a systemic antifungal agent currently in Phase II/III trials in the USA and pending approval in Europe, through development and onto the market.

Putting Maitec through Phase III testing would represent a considerable investment to TLC, which describes the market potential for the antifungal product as "uncertain." The company says it prefers to devote its not-inconsiderable cash resources and R&D dollars (estimated at $120 million at the beginning of 1994) to those products in development which it believes have "the greatest potential to produce revenues for the company."