Roche backs out of $600 million development deal with Chiasma
- Despite positive phase III trial results for the acromegaly drug in development, Roche is not moving forward with the $600 million co-development deal that it agreed to with Israel-based Chiasma.
- Chiasma will move forward and present clinical trial findings to the FDA, with the goal of launching the new oral medication in 2015.
- There is only one approved drug for the treatment of acromegaly, a disease that causes excess bone growth. The existing therapy is an injectable that patients find painful. The global market for acromegaly is estimated to be $1.8 billion.
According to Chiasma CEO Ron Mamluk, all phase III trials were positive, but Roche is “involved in a strategic decision” about whether or not to get more deeply involved in endocrinology.
Chiasma intends to move forward. But now, it has to choose between finding a new partner or going it alone. The company is currently creating batches of the product by outsourcing. “Because this product treats a rare disease, the number of doctors dealing in the field is small, and they can be reached with a limited sales staff,” said Mamluk.