QLT ends trials for prostate cancer drug after poor results

By Craig Wong
Canadian Press
Vancouver Sun

February 15, 2006

QLT Inc. said Tuesday a key trial of its treatment for an enlarged prostate failed to show any improvement and it will not go ahead with Phase 3 trials of the drug.

The Vancouver-based company best known for its eye drug Visudyne said its lemuteporfin injectable therapy in patients with benign prostatic hyperplasia "did not meet the study's primary efficacy objective at three months."

QLT said there was no significant difference between patients receiving the treatment and control groups.

"The preliminary result of this trial does not support initiation of Phase 3 clinical trials of lemuteporfin in BPH at this time," stated Bob Butchofsky, acting CEO of QLT.

The announcement comes as the Vancouver company is returning to its research roots and trying to refocus in the wake of a string of setbacks. Investors pushed the stock from Monday's close of $7.60 on the Toronto stock exchange to a high of $7.80 Tuesday, before it closed back down at $7.52.

In a research note on the development, UBS Investment Research suggested that it would have little impact on the company's performance since lemuteporfin was in such early stages.

"Given the early development stage of lemuteporfin, we had not included it in our financial forecasts or valuation for the company," UBS analysts said.

"However, it is possible there could be some reduction to R&D expenses with the elimination of this program.

"We make no changes to our financial forecasts based on this event."

QLT said Tuesday it will discuss these announcements next Wednesday at its investor conference call that was scheduled to discuss the year-end results and the company's 2006 guidance.