Two legs to stand on

The failure of its daclizumab antibody in ulcerative colitis last week removes a leg from the platform Protein Design Labs Inc. is building in inflammatory bowel disease. With two legs of its IBD platform remaining - Nuvion anti-CD3 antibody and HuZaf fontolizumab, a humanized antibody targeting interferon (IFN) gamma - PDLI says it will stick with the disease area.

However, the failure also means that any upside from the $80 million PDLI paid upfront to reacquire rights to daclizumab from partner Roche will depend on the antibody's success in its other indications of asthma and multiple sclerosis (MS), or a decision to spend another $21 million to get rights for the transplant setting...