Regeneron Pharmaceuticals, Inc. (REGN) recently announced that treatment with its cancer candidate Zaltrap (aflibercept or VEGF trap) extended the survival in previously treated patients suffering from metastatic colorectal cancer.

Regeneron is co-developing Zaltrap with Sanofi-Aventis (SNY).

An abstract from the late-stage, multinational study (VELOUR: n= 1,226) was published in the June 2011 supplement to the Annals of Oncology journal. Detailed results from the randomized, double-blind study are expected to be presented at the ESMO World Congress on Gastrointestinal Cancer on June 25, 2011.

The study evaluated Zaltrap in conjunction with Folfiri (a chemotherapy regimen for treating patients suffering from colorectal cancer), versus placebo and Folfiri. Results revealed that treatment with the combination of Zaltrap and the chemotherapy regimen not only improved the overall survival but also the progression free survival in patients suffering from metastatic colorectal cancer. Progression free survival indicates survival without the worsening of the disease.

If Zaltrap is successfully developed and commercialized, then the top line at Regeneron would be significantly boosted since the market for colorectal cancer represents a significant  opportunity. The disease is the third most commonly diagnosed cancer in males and the second most in females across the globe. The risk of a person getting affected by the dreaded disease increases with age.

Apart from the VELOUR study, Zaltrap is also being evaluated as a first-line treatment of metastatic castration-resistant prostate cancer (VENICE study: Phase III). The independent data monitoring committee (IDMC) is expected to conduct an interim analysis of the data from the VENICE study in mid-2011 with complete results expected in 2012.

Moreover, the candidate is also being evaluated in a phase II study (AFFIRM) as a first-line therapy for patients suffering from metastatic colorectal cancer. The AFFIRM study is evaluating Zaltrap in combination with Folfox (leucovorin, 5-fluorouracil and oxaliplatin). Results from the study are expected in the second half of 2011.

Our Recommendation

Currently, we have a Neutral stance on Regeneron in the long run. The company carries a Zacks #3 Rank (Hold rating) in the short run.

 
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