Zacks_Analysts' Blog : Pipeline Progress at Roche - Analyst Blog

Roche Holdings Ltd. (RHHBY) recently reported positive mid-stage trial results on vismodegib. The candidate is being evaluated for the treatment of advanced basal cell carcinoma (aBCC). The phase II trial (ERIVANCE BCC), which involved patients whose lesions are not appropriate for surgery, or for whom surgery would result in substantial deformity, met the primary endpoint of tumor shrinkage.

Roche added that the adverse events observed in the trial were consistent with previous trials. The company has another phase II trial ongoing for vismodegib. The trial which was initiated in October 2010, is evaluating the candidate among people with operable forms of BCC.

Roche has a collaboration agreement with Curis Inc. (CRIS) for vismodegib. Per the terms of the agreement, Roche is responsible for developing and subsequently commercializing vismodegib worldwide excluding Japan, where the charge lies with Chugai Pharmaceuticals (CHGCY). Curis is eligible to receive payments upon the achievement of certain clinical development and regulatory milestones. Curis will also receive royalties upon commercialization of vismodegib.

Basal cell carcinoma is the most common form of skin cancer, according to the American Cancer Society, accounting for about 80% of all diagnosed skin cancers. The disease is generally curable when the cancer affects only a small area of the skin. However, if the disease is left untreated or does not respond to treatment, the cancer may spread further. In such cases, where BCC advances or spreads to other parts of the body, it becomes life-threatening.

We currently have a Zacks #4 Rank (short-term Sell rating) on Roche.