Antisense CEO takes good with bad in end-of-year figures

Melbourne's Antisense Therapeutics (ASX:ANP) has reported a full-year after-tax loss of AUD$6.2 million, up from $4.6 million from last year, in results described by CEO Mark Diamond as "good news tinged with less than positive news". Diamond blamed the increased loss on higher spending on the company's lead compounds, with ATL1102 for multiple sclerosis moving into phase IIa clinical trials, and ATL1101 for psoriasis in proof-of-concept clinical trials.

In March, Antisense announced that in light of safety issues associated with Biogen Idec and Elan Corporation's MS drug Tysabri, it had voluntarily halted its Phase IIa trial of ATL1102 in MS patients and would convene an advisory group of relevant experts to consider the potential development paths for ATL1102 in this disease, including the possible restart of the phase lla program.

"We made solid progress in R&D and initiated trials for lead compounds on schedule. Unfortunately there was a setback with having to halt the phase II study. For us it was unexpected and a disappointing outcome, but we took the responsible step to halt the trial," said Diamond.

"While we had to pause and review our MS clinical trial we still made significant progress in advancing our product development pipeline. ATL1101 for psoriasis remains on schedule, and not only is it on time, but we have completed the trial and expect to report on schedule by the end of the third quarter."

Antisense is also conducting animal studies pointing to a potential new application for ATL1102 as an inhaled asthma therapy, Diamond said. "Our studies in regard to ATL1102 as an inhaled asthma therapy will continue while we evaluate ATL1102 for MS. The animal trials were underway before Tysabri was taken off the market -- inhalation means patients may get lower dosage levels and it is a safer therapy overall.

"There has been no decision on whether to continue the MS clinical trial to date, but as soon as we know we will let our shareholders and the market know -- we hope to be in a position to make a decision by the end of the year."

Earlier this month, Elan and Biogen reported that there have been no new confirmed cases of the brain disease that prompted the drug to be pulled off the shelf in February and that Tysabri could be back on shelves later this year.

"It is good news, and important information the advisory board will use when making a decision on going forward with our MS drug," said Diamond.

Antisense has $8.7 million in the bank. "This should be sufficient to see us through the next 12 months," Diamond said. "But if we were to re-start the MS clinical trials we would need to raise further capital to allow us to complete the study and further develop our drug pipeline."