Roche exits epigenetic drug deal

Roche has terminated the deal of the development and commercialisation of Oryzon’s drug candidate ORY-1001. According to Carlos Buesa, CEO of Spanish Oryzon Genomics S.A., the action was not data driven, but a consequence of an internal „portfolio reprioritisation at Roche. The Swiss pharma company is responsible for completing an ongoing Phase I trial evaluating the inhibitor of lysine-specific demethylase 1 (LSD1) to treat small cell lung cancer (SCLC). Oryzon’s lead candidate has already completed a Phase I/IIa trial to treat acute myeloid leukaemia (AML) and was granted orphan drug status by the EMA in 2013. After the announcement of the setback of Oryzon’s most advanced and only partnered drug, its shares lost 30% down to €2.11. "During the next weeks, Oryzon will focus its efforts to regain the control of the asset as soon as possible to ensure the continuation of the clinical development plan without interruptions, states Buesa.

Roche paid $21m upfront and near-term payouts in 2014 to get the rights in candidate ORY-1001. Potential development, commercial and sales milestone payments across haematology, cancer and non-malignant indications could have exceeded US$500m. After two years Roche extended the collaboration for another 12 months. Last year, Oryzon has closed a debt funding round of €10.5m, bringing the money into the development of its LSD1 inhibitor.