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* 29 pct of Lemtrada patients showed disability level

improvement

* 65 pct of patients were relapse-free after two years

* Sanofi to file for regulatory approval in Q2

By Elena Berton

PARIS, April 24 (Reuters) – Sanofi’s experimental

Lemtrada multiple sclerosis drug could slow down or reverse

disability and keep patients free from relapses better than an

older therapy sold by German rival Merck, the French

drugmaker said on Tuesday.

New data from a late-stage study announced on Tuesday at the

American Academy of Neurology meeting in New Orleans showed

patients with disabling symptoms were more than twice as likely

to report a sustained reduction in disability with Lemtrada than

with Merck’s Rebif, Sanofi said.

This would be an important development as doctors

increasingly seek drugs that can prevent or slow down the

progression of the disease, not just relapses. Lemtrada is a key

drug candidate for Sanofi as the company searches for new

sources of growth to replace its ageing blockbuster products.

The study, which tested around 800 patients that had not

responded well to a previous treatment for their condition,

found that 29 percent of patients treated with Lemtrada reported

an improvement in their disability level, compared with 13

percent among those who took Rebif.

The data also showed that 65 percent of patients treated

with Lemtrada were relapse-free after two years, compared with

47 percent with Rebif.

The results “raise the bar” in the treatment of multiple

sclerosis, Michael Panzara, therapeutic area head in multiple

sclerosis, immune diseases and neurology at Sanofi’s Genzyme

unit told Reuters.

“It means that this group of patients with high unmet needs

… will have an option that not only will help slow the

progression of disability, which was the target in previous

studies, but also hopefully – at least in some of them – will

bring an improvement and recovery of function,” Panzara said.

“People get better on this treatment. This is a big

difference.”

MS, which has no cure, affects 2.5 million people worldwide.

It is a chronic, often disabling disease that attacks the

central nervous system and can lead to numbness, paralysis and

loss of vision.

Most MS patients have a form called relapsing-remitting,

with sudden flare-ups followed by periods of recovery, while

others have a progressive form that so far is less treatable.

Lemtrada, which Sanofi is developing in collaboration with

Bayer, is given intravenously every day for five

consecutive days when treatment is started and then another

three times one year later.

Other novel MS drugs like Novartis’s recently

launched Gilenya and Biogen Idec’s experimental

medicine BG-12 are given as once- or twice-daily pills.

Although there were no life-threatening or fatal infections

in the trial, side effects remained an issue for the novel

treatment, as in previous tests.

Around 16 percent of patients on Lemtrada had autoimmune

thyroid-related side effects, compared with 5 percent on Rebif,

and 1 percent developed bleeding disorder immune

thrombocytopenia.

Other side effects included a higher incidence of infections

among patients taking Lemtrada.

The commercial potential of the drug, already sold under the

brand name Campath as a leukaemia treatment, was an important

sticking point in the protracted merger talks between Sanofi and

Genzyme.

As part of the deal struck by Genzyme’s management, Sanofi

set up a so-called contingent value right (CVR) tied to

Lemtrada’s development targets and commercial milestones.

Investors received one CVR for each Genzyme share they owned

and stand to receive payments of as much as $14 per CVR if

Lemtrada wins U.S. approval and reaches sales goals, and if the

company meets production goals for existing Genzyme drugs.

Analyst views on Lemtrada vary widely, ranging from 300

million euros to 1 billion euros in peak sales.

Sanofi expects to file for U.S. and European Union approval

of Lemtrada, which has fast-track designation, in the second

quarter of 2012.

The company has developed another MS drug, once-daily pill

Aubagio, which is currently under review by the FDA and EMA.

(Reporting by Elena Berton; Editing by Helen Massy-Beresford)