Incyte arthritis drug shows promise, triggers milestone

Thu, May 6 2010

* Mid-stage data shows drug safe and effective

* Positive data triggers $30 mln milestone from Eli Lilly

* Posts narrower-than-expected Q1 loss

May 6 (Reuters) - Biotechnology firm Incyte Corp said data from a mid-stage trial of its experimental rheumatoid arthritis treatment showed the drug was safe and effective.

The company, which also posted a narrower-than-expected quarterly loss, raised its 2010 revenue outlook to reflect a $30 million payment from Eli Lilly related to the drug INCB28050, and a $3 million milestone from Pfizer Inc for another drug program.

The three-month results from the ongoing six-month trial on 125 rheumatoid arthritis patients showed that the three doses of the drug improved the scores of certain standard measures, like ACR1 and ACR20, for the severity of the disease.

At 12 weeks of treatment with the drug, patients on ACR20, 50 and 70 had response rates of up to 60 percent, 36 percent and 16 percent, respectively, while those on a dummy drug had response rates of 32 percent, 13 percent and 3 percent, respectively.

ACR1 scores also improved rapidly at all three doses -- 4 mg, 7 mg and 10 mg.

The drug was generally well tolerated with one serious adverse event of an unrelated gastrointestinal bleed, the company said in a statement.

Net loss for the first-quarter was $35.7 million, or 30 cents a share compared with a loss of $40.0 million, or 41 cents a share, a year earlier.

Revenue rose to $17.3 million for the quarter, from $671,000 in the year-ago quarter.

Analysts on an average expected the company to post a loss of 33 cents a share, on revenue of $16.1 million, according to Thomson Reuters I/B/E/S.

2010 revenue is now expected to be in a range of $99 million to $101 million, up from the prior view of $66 million to $68 million.

Shares of the Wilmington, Delaware-based company closed at $13.06 Wednesday on Nasdaq. (Reporting by Esha Dey in Bangalore)