UK Says No To Avastin and Erbitux

LONDON JAN 25, 2007 (Reuters) - Britain"s cost-effectiveness watchdog NICE confirmed that two new targeted therapies for bowel cancer should not be used on the country"s state-run health service.

The National Institute for Health and Clinical Excellence (NICE) said in a statement on Thursday it did not recommend Erbitux or Avastin, drugs which have been widely available in the United States and much of Europe.

"The assessment of the evidence shows that neither of these drugs represent a good use of NHS (National Health Service) resources," NICE said in a statement.

NICE is responsible for deciding which medicines are worth using on the state health service in England and Wales.

Avastin was discovered by U.S. biotech group Genentech Inc and is marketed in Europe by Switzerland"s Roche Holding AG. Erbitux, from U.S. firm ImClone Systems Inc, is sold in Europe by Germany"s Merck KGaA.

Dresdner Kleinwort said in a note about Erbitux: "While not surprising, the decision is likely to delay reimbursement of Erbitux in the UK until May 2009, when the appraisal should be reconsidered, according to NICE"s final guidance.

The news is slightly negative for Merck shares. Merck shares were down around 2 percent at 1525 GMT.

Neither drug provides a cure for bowel cancer, but the treatments have been shown in clinical trials to extend life expectancy by around four to five months in some patients.

Avastin, known generically as bevacizumab, works by starving tumours of blood supply, while Erbitux, or cetuximab, stops the proliferation of cancer cells.


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