Neovacs moving forward in rheumatoid arthritis, say analysts

French biotech firm Neovacs (Alternext Paris: ALNEV) intends to initiate a Phase IIb trial with its lead product TNFalpha-Kinoid in rheumatoid arthritis (RA). The strategy is designed to maintain momentum of the programme while it seeks a partner.

The Kinoid approach has potentially significant commercial advantages versus existing anti-TNF products in this large, but highly competitive therapeutic area, comment analysts at Edison Investment Research. The ability to partner this drug, which has also been in Phase II for Crohn’s disease, is central to Neovacs’ investment case. A partnership would be expected to transform its fortunes and allow further development of the IFN alpha-Kinoid in lupus, they, adding that they maintain their valuation for the company at 101 million euros ($130 million), equivalent to 5.15 euros per share.

Neovacs is planning a 140-patient Phase IIb study of TNFalpha-Kinoid in RA, which is expected to commence in mid-2013. This should maintain the program’s momentum while Neovacs seeks a development partner for the product.