Cambridge starts asthma drug trials

13 April 2012

CAMBRIDGE Antibody Technology is starting clinical trials on a new antibody-based drug to treat severe asthma.

The company made the announcement as it reported financial results in line with City expectations for the first nine months of the year.

The loss-making biotechnology company haemorrhaged £20.7m compared with £19m a year before, leaving the group with £101m in cash at the end of June. Revenue was £10.1m compared with £6.4m a year earlier.

Sam Fazeli, a biotech analyst at Nomura who rates the stock 'neutral', said the results showed a steady performance but the key to the stock would be the outcome of legal action against Abbott Laboratories, which is expected to begin in late November and last about three weeks.

The company is arguing for a higher royalty rate on sales of arthritis drug Humira, which was discovered using CAT technology but developed by Abbott.

'A judgment in favour of CAT, although likely to be appealed by Abbott, could push the shares up 30%-50%,' Fazeli said.

CAT confirmed it remained on track to report preliminary phase three clinical data on Trabio, its eye-surgery product, over the next six months.

The company's shares were unchanged at 480p by mid-morning.

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