Actelion pulls out of Trophos option

Switzerland-based Actelion (SIX: ATLN), Europe’s biggest biotech company, says that it has decided not to exercise its option to acquire the privately-held French company Trophos SA, following disappointing pivotal Phase III clinical trial results with the latter’s lead investigational drug olesoxime in the treatment of amyotrophic lateral sclerosis (ALS), an orphan disease also known as Lou Gehrig's.

Last year, Actelion and Trophos entered into an agreement whereby Actelion, in exchange for an option payment of 10 million euros ($13.4 million), obtained an exclusive option to acquire Trophos, at predetermined terms (said at the time to be between 125 million euros and 195 million euros in cash), pending the outcome of the Phase III study with olesoxime in ALS (The Pharma Letter July 20). The payment was recorded as a financial investment and, following the decision not to proceed with the acquisition, the option will be written-off within financial expenses, the Swiss firm said.

Olesoxime fails to increase survival in ALS