Avastin study fails to show improved lung cancer survival

SOUTH SAN FRANCISCO, Calif.—Biotechnology company Genentech Inc. said Monday updated results from a late-stage study show Avastin increased progression-free survival for lung cancer patients, but failed to improve overall survival rates.

The drug is already approved for the condition, in combination with chemotherapy treatment. The results are part of a study conducted by Genentech's European partner Roche.

Shares of Genentech fell 72 cents to $72 in premarket trading. The stock closed at $72.72 Friday.

The updated data could prompt negative sentiment toward Avastin, said Goldman Sachs analyst May-Kin Ho, in a note to investors. She pointed out that a prior late-stage study on the drug showed an improvement in overall survival rates for patients on Avastin and chemotherapy.

"The lack of overall survival benefit in Avail (recent study data) may be due to a lack of statistical power," she said, adding that the result is from a secondary goal and there were different chemotherapy backgrounds for the patients involved.

Avastin is sold in an already tightly competitive market and faces the possibility of more competition from New York-based ImClone Systems Inc. That company's drug Erbitux is being studied as a lung cancer treatment and in September study data showed that it improved the overall survival rate for patients.

Avastin is also approved as a colon cancer treatment and recently gained approval as a breast cancer treatment. It is Genentech's key revenue driver, with sales of just under $2.3 billion in 2007.

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