Appraising Praecis

Amgen Inc.'s decision to spend $100 million this year to develop Praecis Pharmaceuticals Inc.'s abarelix to treat prostate cancer represents the second big partnership commitment for the gonadotropin releasing hormone antagonist. Last week's AMGN deal for the U.S., Canada, Australia and Asia on top of Synthelabo SA's buy-in in 1997, stems from abarelix's improved side effect profile compared to other GnRH antagonists as well as approved hormonal superagonists and anti-androgens.

Malcolm Gefter, chairman and CEO of Praecis, said that hormonal superagonists stimulate testosterone production before suppressing it. After three to four weeks, testosterone levels fall but the initial flare-ups could serve to aggravate the cancer. Furthermore, he said, "you can't use the medicine in advanced stage prostate cancer in patients with metastases in particular areas because exacerbation could lead to death."...