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News Review

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The Best in the News on HCV, HBV, and HIV/HCV Coinfection from October 15th, 2003 thru October 31st, 2003

Alan Franciscus
Editor-in-Chief


Risk of HCV-Infected Allografts "Serious Public Health Threat"
Living Donor Liver Transplants Offer Fewer Complications Than Cadaveric Organs
Metabasis Therapeutics, Inc. Awarded a Two Year, $2.4 Million Phase II SBIR Grant to Identify Hepatitis C Drugs
Treatment of Acute HCV Requires Expert Timing
Pregnancy May Have Beneficial Effect on Chronic HCV Infection
Liver transplant recipients over 60 have lower survival
State Develops Plan to Battle Hepatitis C
Vertex Pharmaceuticals Reports Six-Month Results from Phase II Clinical Study of Merimepodib (VX-497) in HCV
Drug Earnings Look A Bit Sickly
Life on the Waiting List: Teacher Bides Precious Time
Massachusetts Prisons Have High Disease Rate
Schering-Plough Gets EU Ok For New Pegintron Label
New Mexico Inmates to Get Hepatitis Treatment
Pamela Anderson Says Hepatitis C May Kill Her in a Decade
Fast-Track Review Speeds Japan Pegasys Approval
Laboratory Corporation of America. (LH) To Offer Liver Fibrosis Assay HCV FibroSure™ Through Exclusive Relationship With BioPredictive
Schering-Plough Posts Quarterly Loss, Sales Fall
Tularik Receives FDA “Fast-Track” Status
Is Acupuncture A Risk Factor For Hepatitis?
Health Officials Report Rise in Hepatitis C
$25 Million Settlement Offered Over Hepatitis C Outbreak
Problems at Schering-Plough Run Deeper Than Hassan Thought
EU Removes Requirement for Liver Biopsy For Pegintron Patients
Possible Settlement of Lawsuits Reached in Hepatitis C Outbreak
Schering-Plough Provides Grant Supporting Major New Hepatitis C Research And Education Initiative By American Academy of Family Physicians
Response to Standard Hepatitis C Treatment Can Be Predicted As Early As Week 1
Schering-Plough Reports Novel Investigational Protease Inhibitor
Researchers Identify Essential Component of Immunity against the Hepatitis C Virus
New Drug Hope for Millions of Hepatitis C Victims
Shorter Interferon/Ribavirin Course Effective for Chronic Hepatitis C Types 2 & 3
Study Shows 24 Weeks of Pegintron Combination Therapy As Effective As 48 Weeks In Genotype 2/3 Hepatitis C Patients
Efficacy in HCV Genotype 4: Unmet Need
Roche Study May Bring Wider Use of Pegasys Hepatitis C Drug
New Study Investigates Pegasys and Copegus for the Treatment Of Chronic Hepatitis C in African Americans
New Study Demonstrates Benefits of Hepatitis C Therapy among Previously Under-Treated Patient Population
Idun Pharmaceuticals Reports Positive Data for First Oral Clinical Trial in HCV Patients
Drug Hope for Hepatitis C
Pegasys Found Superior to Current Hepatitis B Treatments
Cirrhotic Patients with Spontaneous Bacterial Peritonitis
Cultures Of Human Fetal Hepatocytes
Idenix Pharmaceuticals Presents Positive 1-Year Data On Telbivudine(LdT) For The Treatment Of Chronic Hepatitis B
Management Of Hepatocellular Carcinoma Larger Than 10 Cm
Severe Hepatitis C-Related Liver Damage Following Liver Transplantation
Health-Related Quality of Life in Long-Term Liver Transplant Survivors
Survival of Recipients Of Liver Grafts From Donors Over 80 Years
Virus-Related Muscle Damage Tied To Chronic Fatigue
Transplant Extends Survival in Liver Cancer Patients
Designer Transplant Drug Shows Promise In Monkeys Compound May Block Organ Rejection Without Side-Effects


October 15th, 2003


Risk of HCV-Infected Allografts "Serious Public Health Threat"
Peggy Peck

Limitations in donor screening combined with outmoded donor tissue sterilization procedures suggest that about 300 hepatitis C virus (HCV)-infected musculoskeletal tissue specimens are distributed by U.S. tissue procurement centers each year, according to the results of a study presented here at the 41st annual meeting of the Infectious Diseases Society of America.

Lennox Archibald, MD, medical director of Regeneration Technologies in Alachua, Florida, said that the Food and Drug Administration (FDA) currently "has no approved test for postmortem presence of HCV in donor tissues. Our research suggests that there could be up to 300 infected tissue specimens distributed each year in the U.S. The multiple infections this could cause in the recipient population “and those who have contact with them — presents a serious public health threat." Dr. Archibald supervised investigations of allograft infection outbreaks while serving as a medical epidemiologist with the Hospital Infections Program at the Centers for Disease Control and Prevention from 1995 to 2002.

He noted that about 18,000 cadaveric donors provide 650,000 allografts for transplantation often cartilage for joint surgeries--each year. Thus, tissue from a single infected donor could be distributed among dozens of recipients.

Serological tests used to screen tissue donors for HIV antibody and hepatitis B virus (HBV) surface antibody are very sensitive, but serology for HCV is not as sensitive (97%), Dr. Archibald said. This is clinically worrisome because data from first-time blood donors suggest that the seroprevalence of HCV is markedly higher, 0.4%, than seroprevalence of HIV (0.02%) or HBV (0.2%). Thus, he theorized that HCV prevalence among tissue donors would also be higher. He said an analysis of data from tissue procurement agencies suggests that HCV is actually more common almost three times more common--among tissue donors than among first-time blood donors.

In the study, Dr. Archibald and colleagues obtained seroprevalence data collected from July 1996 to June 2001 from 39 U.S. tissue procurement agencies. HIV, HBV, and HCV tests were performed on postmortem blood after standard donor screening, which included medical/social history, physical examination, and review of medical records. Positive HIV Ab was confirmed by Western Blot, HBsAg by neutralization, and HCV by recombinant immuno-blot assay.

Dr. Archibald used published anti-HCV sensitivity data for clinical samples to estimate the annual number of HCV-infected tissue donors that might not be detected on initial screening.

The 39 agencies performed initial serology on a total of 19,300 cadaveric tissue donors. That sample represents about 21% of the tissue donors in the U.S. during the same period. Seroprevalence rate for HCV Ab was 1.06% compared with 0.03% for HIV and 0.29% for HBsAg, he said.

Thus, about five HCV-infected tissue donors would be missed and 180 HCV-infected allografts distributed. But that estimate does not include the number of tissue donors that may be in the "window period" during which serology would not detect infection. So a more accurate estimate, he said, "is about 300 to 350 infected allografts each year."

A sterilization procedure that included viral inactivation would reduce this risk, but Dr. Archibald noted that the FDA does not currently require that tissue processors use such procedures.

"The significance of this study is that, clearly, ongoing testing of cadaveric tissue does not exist and this unique investigation has determined a significant rate of hepatitis C infection among donors," Christopher Woods, MD, director of the microbiology laboratory at the Durham Veterans Administration Medical Center in North Carolina, told Medscape. Dr. Woods was not involved in the study.

He added, "We can't underestimate the importance of making sure that tissues that are being transplanted into our desperately ill patients are, in fact, healthy tissues. [This study] is a very important study."

Millions of people have been unknowingly infected with hepatitis C, some of them from contaminated blood during transfusions, according to health officials.

"We know that many people are infected with hepatitis C and are unaware that they have the disease," said newly appointed US Surgeon General Dr. David Satcher.

"Unfortunately, many of them cannot be readily identified because the disease does not cause symptoms until it is far advanced."

"Many with hepatitis C virus have no reason to believe they are infected," researchers say. "Many of those at high risk are average people -- middle-aged housewives who had a cesarean section delivery, young adults who had transfusions as high-risk babies or middle-aged men who served in Vietnam."

It is believed that millions are infected with hepatitis C by transfusions.

Hepatitis C is a potentially deadly disease that infects the liver, causing extreme fatigue, nausea, loss of appetite and abdominal pain. It can eventually cause cirrhosis of the liver and death.

It is considered a silent epidemic because many people don't develop symptoms for decades. The Centers for Disease Control and Prevention (CDC) in Atlanta estimates that 40 to 70 percent of those exposed to tainted blood become infected with hepatitis C. Symptoms of Hepatitis C are nausea and vomiting, weakness, fever, muscle and joint pain, yellowing of eyes and skin, dark urine and tenderness in upper abdomen.

It is spread most commonly through intravenous drug use, blood transfusions and organ transplants. It can also be spread through sexual contact, although it is a less likely means of transmission.

Satcher said that those who were infected from contaminated blood transfusions could be tracked through hospital and blood bank records.

An estimated 8,000 to 10,000 people die from hepatitis C each year.

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Living Donor Liver Transplants Offer Fewer Complications Than Cadaveric Organs
by Megan Rauscher

Living donor liver transplantation (LDLT) is associated with a lower rate of serious complications and rejection and may have a slightly higher survival than orthotopic liver transplantation, according to intermediate term morbidity and mortality data from 92 patients who underwent LDLT at the University of Rochester in New York between 2001 and 2002.

The study represents the largest single-center study of LDLT in the U.S., Dr. Parvez S. Mantry told Reuters Health. He presented the results Monday during the 68th Scientific Meeting of the American College of Gastroenterology in Baltimore, Maryland.

"From the donor standpoint, we published data separately showingthat it is an extremely safe procedure," Dr. Mantry told Reuters Health.

In the current study, most recipients tolerated the procedure "very well," he said, with 86% not experiencing any significant complications, and the survival rate was "pretty good," with 92% of patients alive at 6 months.

"Although I published just the intermediate term mortality, we are seeing that patients who underwent LDLT even two or three years ago are for the most part doing quite well," Dr. Mantry told Reuters Health.

The biliary and vascular complication rate for the Rochester LDLT cohort (6.7% and 2.2%, respectively) is lower than that reported nationally (22% and 9.8%, respectively), the research team notes in a meeting abstract.

"The only condition where we have to be a little watchful, and again that is evolving, is chronic hepatitis C," Dr. Mantry said. "These patients may have a higher morbidity from LDLT although that data is not yet completely assimilated."

"LDLT, from my perspective as a hematologist, is a very good alternative to cadaveric liver transplantation mainly because the shortage of organs is so great," Dr. Mantry said.

New York State has the largest waiting list in the country but the least number of organs supplied from cadavers so there is a "huge gap between supply and demand," he explained, "which is why we like to bank on living donor liver transplantation."

Dr. Mantry said he believes that LDLT is "certainly going to catch on and will definitely be a large part of liver transplantation in the future."

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October 16th, 2003


Metabasis Therapeutics, Inc. Awarded a Two Year, $2.4 Million Phase II SBIR Grant to Identify Hepatitis C Drugs

Metabasis Therapeutics, Inc. announced today that it has been awarded a two year Phase II Small Business Innovation Research (SBIR) grant of up to $2.4 million by the National Institute of Allergy and Infectious Disease (NIAID) entitled "Liver-Targeted Prodrugs for the Treatment of Hepatitis C."

The grant supports research at Metabasis focused on identifying potent, efficacious and safe drugs for the treatment of hepatitis C patients using the company's proprietary HepDirect(TM) technology.

The HepDirect technology is a prodrug technology developed and patented by Metabasis that enables liver targeting of the biologically active form of a wide variety of new and existing drugs. Liver targeting can increase liver drug levels and reduce peripheral exposure to the active compound and thereby result in more effective and safe drugs for treating liver diseases.

It is estimated that greater than 170 million people are infected with hepatitis C worldwide. Despite recent improvements in current therapies, a large segment of this population is still not adequately treated. Nucleosides represent a class of compounds commonly used to treat viral infections such as hepatitis C. To date, however, few nucleosides other than the marketed drug ribavirin have proven effective against hepatitis C. Poor efficacy is attributed in many cases to poor conversion of the nucleoside to the corresponding nucleoside triphosphate, or NTP, which is the active form of the drug. Metabasis believes its HepDirect technology can overcome this limitation and lead to higher NTP levels in the liver while simultaneously decreasing NTP levels outside of the liver, which in some cases will result in improved safety.

Mark Erion, Executive Vice President of Research and Development stated, "We are excited to receive this award from NIAID. We plan to use the funding to expand our nucleoside and HepDirect prodrug libraries, which we believe will help us to identify new inhibitors of an enzyme important for hepatitis C viral replication. The funding will also support our efforts to further develop a cell-based screen that we believe will provide information useful for selecting a development candidate. Our HepDirect prodrug technology is being used with Metabasis' drug candidates for hepatitis B and primary liver cancer and we believe it will prove useful for targeting drugs designed to treat hepatitis C infections to the liver."

Metabasis Therapeutics, Inc. (www.mbasis.com) is a privately held, biopharmaceutical company that develops proprietary products principally for the treatment of liver and liver-related metabolic diseases. Metabasis has expertise in the fields of nucleoside / nucleotide chemistry and metabolism, liver biology and liver-specific drug delivery. Metabasis has discovered and developed a new class of drug candidates for treating diabetes that act to lower liver glucose production in diabetic patients. The first drug candidate from this program, CS-917, is being developed in collaboration with Sankyo Co., Ltd. and is currently undergoing clinical testing. Metabasis has also developed its HepDirect technology that allows liver-specific delivery of new and existing drugs. Two novel drug candidates derived from the HepDirect technology are in clinical testing: a drug for hepatitis B called Hepavir B, developed in collaboration with Ribapharm, Inc., and a drug for primary liver cancer called MB7133, to which Metabasis retains exclusive rights.

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Treatment of Acute HCV Requires Expert Timing
Peggy Peck

If acute hepatitis C (HCV) is left untreated, a high number of patients who are asymptomatic after exposure will spontaneously clear the virus within two to four months of infection, according to David Oldach, MD, from the University of Maryland School of Medicine in Baltimore.

Dr. Oldach, who spoke during a symposium on hepatitis C management controversies at the 41st annual meeting of the Infectious Diseases Society of America, said that one recent published report indicated that the clearance rate in untreated individuals is "as high as 52%." However, he said that waiting for the virus to clear spontaneously can be problematic because if treatment is delayed too long, it is unlikely that the virus will respond to therapy. The issue boils down to this question, he said: "How early is too early, and how late is too late?"

Given the high rate of spontaneous clearance, Dr. Oldach said there are good data that suggest treatment "before two to four months is probably too early." He noted that for most patients treatment should follow "a robust immune response" and he added that HCV-specific proliferative responses are "necessary, but not always sufficient for clearance [of HCV]."

He cited an ongoing University of Maryland study of healthcare workers exposed to HCV through needle-stick, which suggests that there are some factors that predict spontaneous clearance of HCV: "Young females with symptomatic infection are most likely to clear."

Just as treatment before two to four months is too early, Dr. Oldach said that "if you wait to treat until six months, you've probably waited too long." Studies indicate that the likelihood of achieving a viral response begins to decrease by six months. Thus, he said, treatment should ideally take place between four and six months after infection.

Once the patient and physician have agreed that treatment is indicated, Dr. Oldach said the next issue is "what therapy should be used?"

Most large studies were conducted in populations with chronic infection, so there is little evidence to guide treatment choices, he said.

Citing four studies that were conducted in acute posttransplant HCV, Dr. Oldach said that high dose 5-10 million IU/day) interferon-alpha monotherapy for two weeks followed by 24 weeks at standard dose (3 million IU three times per week) achieved the most robust response. But "the addition of ribavarin did not affect outcome," he said.

Raymond T. Chung, MD, associate professor of medicine at Harvard Medical School in Boston, Massachusetts, said that aside from acute HCV, a second difficult treatment population is made up of patients who have HIV as well as chronic HCV. With these patients, the clinician needs to determine not only when and how to treat but also when and how often to biopsy, because some data suggest that coinfection increases the progression of fibrosis in the liver.

Dr. Chung said that he tracks fibrosis by developing a fibrosis index that is based on the change in fibrosis score between the first and second biopsy, divided by the time between biopsies. When this index increases, he recommends initiation of treatment.

Once treatment is initiated in coinfected persons, Dr. Chung said that patients should be closely monitored because "early viral response has a strong negative predictive value. Thus, if the patient fails early, he or she is likely to fail late."

When selecting an agent to treat coinfected individuals, Dr. Chung said he recommends pegylated interferon, which he said "should now be considered the standard of care for coinfected individuals."

Eliot W. Godofsky, MD, assistant clinical professor of medicine at the University of South Florida in Tampa, said the difficult treatment decisions especially treatment of coinfected individuals might be eased with "a noninvasive test for markers of fibrosis." But Dr. Godofksy, who chaired the HCV controversies symposium, said such tests were "just in the investigational stage and clearly not ready for prime time."

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Pregnancy May Have Beneficial Effect on Chronic HCV Infection
Medscape

Pregnancy and parturition may enhance the natural resolution of hepatitis C virus (HCV) RNA in women with chronic HCV infection, according to a report published in the October issue of the Journal of Medical Virology (J Med Virol 2003;71:205-211).

The findings are based on a study of 22 pregnant and 120 nonpregnant female patients infected with HCV. Patients in both groups tested positive for anti-HCV antibodies and for HCV RNA.

In the pregnant group, two women lost HCV RNA permanently after parturition and one lost HCV RNA intermittently, Dr. Masashi Mizokami, from Nagoya City University Graduate School of Medical Sciences in Japan, and colleagues note. In contrast, in the control group, one woman lost HCV RNA permanently and one lost it intermittently (p = 0.03).

At 3 months after parturition, women who lost HCV RNA were more likely than those with persistent HCV RNA to have an HCV core protein level < 15 fmol/L (p = 0.02).

"The mechanism by which pregnancy and delivery influence HCV viremia levels is not well understood," the authors note. However, it may be immune-mediated and result from the post-delivery "rebound of the Th1 response after Th2 shift during pregnancy."

Taken together, the findings suggest that "pregnancy and parturition may improve the prognosis in women with chronic HCV infection," they add.

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Liver Transplant Recipients over 60 Have Lower Survival

gastrohep.com

Older liver transplant recipients have lower survival than younger patients, find physicians in the November issue of the American Journal of Transplantation (Am J Transplant 2003; 3(11): 1407-12).

Older age is not considered a contraindication for liver transplantation. However, age-related morbidity may be a cause of mortality.

In this study, physicians from Spain evaluated survival and incidence of post-transplant complications in 111 adult liver transplant recipients.

The team divided patients into 2 groups according to age:

Patients younger than 60 years (n = 54)
Patients older than 60 years (n = 57)

The doctors found that older patients were more frequently transplanted for hepatitis C and hepatocellular carcinoma. Their liver disease tended to be less advanced.

Malignancy as the cause of death:
Older patients = 21%
Younger patients = 2%

However, after transplantation these patients had significantly lower survival, when compared to younger patients.

The team determined that higher age was independently associated with mortality.

In addition, the incidences of de novo neoplasia and nonskin neoplasia were
higher in older patients.

In this study, the team found that malignancy was the cause of death in 2% of patients under 60 years, compared with 21% of patients over 60 years.

Higher age and smoking were independently associated with a greater risk of dying of de novo neoplasia.

Dr Ignacio Herreroa's team concluded, "Older liver transplant recipients have a significantly lower survival than younger patients".

"Malignancy is responsible for this decreased survival."

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State Develops Plan to Battle Hepatitis C


The Hawaii Department of Health is releasing a newly developed plan that addresses issues of surveillance, education, prevention and treatment of hepatitis C, health officials said. "Because of the similar risk factors between viral hepatitis, HIV and sexually transmitted diseases, we have been working to develop a program that integrates hepatitis prevention, particularly hepatitis C, into existing public health department prevention services and programs," said Peter Whitica, chief of the department's STD/AIDS Prevention Branch.

Hawaii physicians and laboratories have reported more than 5,000 cases of HCV since 1997, but since the virus does not always produce symptoms, as many as 20,000 in the state could be infected, officials said.

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October 17th, 1003


Vertex Pharmaceuticals Reports Six-Month Results from Phase II Clinical Study of Merimepodib (VX-497) in HCV

Merimepodib Demonstrated Proof-of-Mechanism (Tolerability and Clinical Activity) in Combination with Pegylated Interferon and Ribavirin - Vertex Pharmaceuticals Incorporated (Nasdaq:VRTX) today reported encouraging results from a six-month interim analysis of an ongoing Phase II clinical trial with its novel drug merimepodib (VX-497) for the treatment of hepatitis C virus (HCV) infection. This 31-patient study is designed to evaluate the safety, tolerability and clinical activity of merimepodib administered in combination with pegylated interferon (peg-IFN) and ribavirin in HCV patients who were non-responsive to treatment with a previous course of interferon and ribavirin. At six months, merimepodib met its primary endpoint of safety and tolerability and was not associated with any serious adverse events. At six months, merimepodib also met its secondary endpoint of clinical activity and demonstrated a statistically significant antiviral response in combination with pegylated interferon and ribavirin.

"In this six-month interim analysis, merimepodib was well tolerated and showed a statistically significant dose-dependent antiviral effect, suggesting that merimepodib may enhance the antiviral activity of pegylated interferon and ribavirin," stated John J. Alam, M.D., Senior Vice President of Drug Evaluation and Approval. "Based on the tolerability and clinical activity of merimepodib observed in the interim analysis of this study, we believe proof-of-mechanism for merimepodib in treatment-refractory patients has been obtained. The complete analysis, which will include 12-month treatment and six-month post-treatment data, will be used to guide the clinical path of merimepodib going forward."

"Within the limitations of the size of this study, we are encouraged by the tolerability and additive antiviral activity that merimepodib demonstrated in patients who were non-responsive to previous combination therapy," stated Dr. Patrick Marcellin, Professor of Medicine at University of Paris VII, and the lead investigator for the study. "The main goal of HCV treatment is to clear the virus
from patients. The addition of merimepodib to a standard-of-care regimen appears to increase the proportion of treatment-refractory patients who show a viral response at six months, representing a clinically important finding. "

Study Design
The Phase II, double-blind, placebo-controlled, randomized study is designed to evaluate the safety and tolerability of two dose regimens of merimepodib in combination with peg-IFN and ribavirin in patients with HCV genotype 1 who were non-responsive to interferon-alpha and ribavirin therapy. The secondary objective of the study is to assess the pharmacokinetics and clinical activity of merimepodib. The study is being conducted in Europe. Patients enrolled in the
study had previously received a minimum of 12 weeks of IFN and ribavirin treatment without achieving undetectable viral RNA (vRNA)at any time point. After the initial six months of the trial, patients had the option to extend treatment for an additional six months. Collection of 12-month end-of-treatment data and six-month post-treatment sustained virologic response data is continuing.

Vertex anticipates that when the study is complete, the full trial results will be presented at a medical conference.

Merimepodib is one of several drug candidates in Vertex's product portfolio that the Company is developing independently in the areas of infectious disease, autoimmune disease, inflammation and genetic disorders. Based on results from ongoing studies, as well as an analysis of market opportunity, Vertex expects to prioritize two drug candidates from this portfolio for full development and
commercialization in high-value markets served by specialists. At the same time, Vertex will continue to pursue strategic alliances to maximize the near-term and downstream commercial value of certain research and clinical development programs. Vertex currently retains all worldwide development and commercial rights for merimepodib.

About Merimepodib
Merimepodib is a small molecule, orally administered inhibitor of the enzyme inosine monophosphate dehydrogenase (IMPDH). IMPDH inhibition leads to a reduction in intracellular guanosine triphosphate (GTP), a molecule required for DNA and RNA synthesis.

Recent reports in the medical literature suggest that IMPDH inhibitors such as merimepodib may enhance the antiviral activity of ribavirin in vitro by depleting GTP and increasing the rate of incorporation of ribavirin into viral RNA, rendering the virus nonfunctional (1). These insights provide a mechanistic interpretation for the antiviral activity observed clinically when merimepodib is added to ribavirin-containing HCV therapies. IMPDH inhibition may therefore represent an attractive strategy for increasing the sustained viral response rate in HCV patients, the principal goal of treatment.

Previous Studies of Merimepodib
Merimepodib has been evaluated in two previous short-term studies in HCV patients. Vertex previously reported data from a 28-day Phase II study to evaluate the safety, tolerability and clinical activity of merimepodib combined with interferon-alpha in treatment-naive HCV patients. The viral load data from this study showed a trend toward enhanced antiviral activity in patients treated with merimepodib combined with interferon as compared to patients receiving interferon alone.

Vertex has also conducted a 28-day Phase II study of merimepodib administered as a monotherapy to HCV patients who were non-responsive to prior treatment with interferon-alpha. Results from this study showed that merimepodib was well tolerated and appeared to reduce levels of serium alanine aminotransferase (ALT), a marker of liver inflammation.

About HCV Infection
HCV infection is a serious disease that causes inflammation of the liver, which may lead to fibrosis and cirrhosis, liver cancer, and ultimately, liver failure. Chronic hepatitis C infection afflicts approximately 2.7 million people in the U.S., many of whom are unaware of their infected status. HCV may go undetected for up to 20 years following initial infection. Worldwide, the disease strikes as many as 185 million people. Each year, 8,000 to 10,000 people in the U.S. die from complications of HCV. Current treatments have been effective for only 40 to 60 percent of patients chronically infected with genotype 1 HCV, the most difficult viral strain to treat and the most common form in the U.S. Patients who are non-responsive to current HCV therapy have limited treatment options, and clinical
experience shows that only a very low proportion of such patients achieve a sustained viral response with subsequent treatment regimens.

About Vertex
Vertex Pharmaceuticals Incorporated is a global biotechnology company committed to the discovery and development of breakthrough small molecule drugs for serious diseases. The Company's strategy is to commercialize its products both independently and in collaboration with major pharmaceutical partners. Vertex's product pipeline is principally focused on viral diseases, inflammation, autoimmune diseases and cancer. Vertex's first approved product is the HIV protease inhibitor Agenerase (amprenavir), which Vertex co-promotes with GlaxoSmithKline.

Vertex Safe Harbor Statement
This press release may contain forward-looking statements, including statements that i) that merimepodib may enhance the antiviral activity of pegylated interferon and ribavirin; ii) that proof-of-mechanism has been obtained based on interim data from Vertex's clinical study; and iii) that Vertex will prioritize two drug candidates from its portfolio for independent development and commercialization in high-value markets served by specialists. While management makes its best efforts to be accurate in making forward-looking statements, such statements are subject to risks and uncertainties that could cause Vertex's actual results to vary materially. These risks and uncertainties include, among other things, the risk that i) the six-month interim analysis of the study may not be indicative of the 12-month analysis; ii) data suggesting proof-of-mechanism may not be confirmed by 12-month data, or the results of this small Phase II study of merimepodib may not be indicative of the results that would be obtained in a larger trial; iii) Vertex's drug development programs may not proceed as planned due to partnership, technical or patient enrollment issues, and other risks listed under Risk Factors in Vertex's form 10-K filed with the Securities and Exchange Commission on March 31, 2003.

Agenerase is a trademark of the GlaxoSmithKline group of companies.

(1) Zhou, S. et al. (2003) The effect of ribavirin and IMPDH inhibitors on hepatitis C virus subgenomic replicon RNA. Virology 310: 333-342.

Vertex Contacts:
Lynne H. Brum, Vice President, Corporate Development and Communications, (617) 444-6614
Michael Partridge, Director, Corporate Communications, (617) 444-6108
Jaren Irene Madden, Media Relations Specialist, (617) 444-6750

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October 17th, 2004


Drug Earnings Look A Bit Sickly
Ed Silverman

Just a few years ago, drug stocks were treated like gold. And for good reason.

Since the results of drug companies aren't tied to economic cycles, the industry was viewed as a nice hedge against a soft economy. Moreover, billion-dollar sellers were still streaming out of many labs.

Not anymore.

This year, the pharmaceuticals group is likely to generate earnings growth of just 0.9 percent, half of last year's performance, according to Michael Krensavage, an analyst at Raymond James.

"Many of the big names have been left behind in the rally since last spring," said Brandon Carl, an analyst at BB&T Asset Management. "Basically, a lot of people are worried about competition from generic drugs."

Investors will get a glimpse of how the major drug companies are faring this week when Merck, Pfizer, Schering-Plough, Wyeth and Bristol-Myers Squibb report third-quarter earnings. Johnson & Johnson last week posted a 20 percent increase in profit, though it acknowledged it is in a cost-cutting mode.

Between them, these companies form the heart of the U.S. drug industry and employ tens of thousands of people in New Jersey.

The biggest drag on the sector is Schering-Plough, which last year lost patent protection for Claritin, the allergy medicine, and faces increased competition for its hepatitis C treatment. Recently, the Kenilworth drug maker announced a restructuring.

But the subsequent arrival of cheaper generics is the big reason the company is expected to report third-quarter earnings of 10 cents a share, a 66 percent drop compared with the previous year, Krensavage said.

By the same token, Schering-Plough shares have been battered for so long that Tim Anderson, an analyst at Prudential Financial, said he believes the company is undervalued, at least for the longer term. In particular, he points to sales potential for Zetia, a cholesterol drug.

Schering-Plough "should be one of a small handful of pharmaceutical stocks with naturally occurring revenue and earnings growth," he wrote in a note to clients. "This growth will likely be driven largely by Zetia, and a (planned) combination of Zetia and Merck's Zocor."

The outlook for Merck, by contrast, is less certain. The Whitehouse Station drug maker recently spun off Medco Health Solutions, the pharmacy-benefits manager, which means investors will see earnings from Merck reflecting a pure pharmaceuticals entity.

But Merck faces concern about the prospects for cholesterol drug Zocor, its biggest-selling medicine. Year-over-year sales are expected to decline, according to Anderson. Meanwhile, Zocor faces generics in other countries and the recent launch of AstraZeneca's Crestor here.

"We remain skeptical on Merck, because prescription data suggest the company needs accelerated sales to hit its earnings growth target of 10 percent this year," wrote Krensavage, who looks for Merck to report third-quarter earnings of 83 cents, up 6.4 percent.

He added Merck prescriptions filled through retail and mail-order pharmacies fell 9.5 percent through August, and dollar-valued sales rose 1.3 percent, citing data from NDC Health, a market-research firm.

Similarly, analysts are cautious about Pfizer, which sells Lipitor, the leading cholesterol treatment, because of fresh competition. There is also a potential rival for Viagra, another big seller. Krensavage looks for earnings of 38 cents, down 4.5 percent from a year ago.

On an upbeat note, Krensavage said he forecasts Bristol-Myers Squibb will report an 11 percent increase in earnings, to 41 cents. The performance is mostly due to the poor showing a year ago, but also strong results from treatments for HIV and schizophrenia.

Wyeth is expected to report third-quarter profit of 55 cents, up 17 percent, said Krensavage, whose forecast is 5 cents less than the consensus of other drug-industry analysts. The bright spots include rising sales of a heartburn drug and an anti-depressant.

But declining sales of hormone replacements, which have been linked to cancer, continue to plague the Madison-based drug maker. He expects sales of the Premarin product line to show a sales drop of $285 million, or 32 percent, from a year ago.

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Life on the Waiting List: Teacher Bides Precious Time
by Jack Slater

That Saturday morning was pleasant— almost too pleasant. It was May 26, 2002. My wife and I were in our kitchen in Ballard, about to make a batch of gazpacho to welcome the coming summer. I was holding a tuna-salad sandwich, wrapped in plastic, which I had just bought at the corner store.
We heard the rattle of the mailbox, so I went downstairs, sandwich in hand. I opened the mailbox door and there it was—the letter I had been expecting for almost two months. I pulled it out and stared at the envelope. It seemed to glow in my hand. I kissed it and said a quick prayer for the hope it had to offer. For it to say I had been placed on the waiting list for a liver transplant.

I HAVE HEPATITIS C, a nasty, blood-borne virus that attacks the liver,eventually killing it and the person in whom the liver resides. By that May morning, I had endured six months of tests in one of life’s more ironic contests: trying to prove I was healthy enough to earn my place in line for a donated organ.

The only known treatment for “hep C” involves daily injections of interferon. The side effects are nasty and the cure rate is roughly 20 percent. My disease is sufficiently advanced to make the odds of a cure much lower and the harsh treatment not worth the odds. Now my only hope is if somebody out there dies the right kind of death: one that leaves the liver intact. The person who dies needs to be healthy—and needs to die when I’m healthy enough to be approved for, and survive, a grueling surgery. The person needs to have my blood type, be about my size and have had the foresight and kindness to register the desire to be an organ donor. Of course, I wish you a long and happy life. But if that doesn’t happen, well, someone out there could use your lungs, heart, valves, eyes, skin, bone, tendons, kidneys and liver. It’s an amazing world we live in.

I HAD NO SYMPTOMS when I was diagnosed with hep C in 1997. That same year I was hired to teach history at Seattle’s Franklin High School, a job that brought my life full circle.

I learned the gift of gab selling men’s shoes at my father’s store in West Palm Beach, Fla. I was a history and education major in college and taught adult ed for a year before I hit the road, Jack Kerouac style. I stumbled into acting, which I did for 20 years: movies, television, commercials, a bit of stand-up political humor. It was fun while it lasted, but no way for a grown man to live. I had long harbored this notion of moving to Seattle, where I could drink good beer at the Virginia Inn and play softball at Green Lake. And in 1991, I did just that, after falling in love with the woman who has been both my dream and my wife for 12 years. After teaching at the King County Jail and as a substitute teacher in the Seattle schools, I landed this great gig at Franklin.

Teenagers are fun and exasperating and bored by un-hip education. Reading is slow; computer games brilliantly quick. It doesn’t help that many parents are chronically broke or that many teachers are close to broke.

But teaching has its perks. It feels righteous to chaperone the prom. We hear great concerts by the jazz band and see wonderful stage productions. We see talented kids mature and add a few inches from year to year. We miss them when they graduate.

Teaching history has been made even more exciting by world events. Each day, it seems, the front page offers earthshaking news that can be connected to the culture, social movements and wars of the past, that connects people in the Middle East, Korea and Texas. Every chance I got, I taught African-American history. It’s in our face every day. We must learn it well. All of us.

So when I was told I had hep C, I quit drinking ‘doctor’s order’ and poured myself into teaching. For almost five years, I was happy and symptom-free.

THEN, IN LATE 2001, I GREW TIRED. Impossibly tired. School starts at 7:45 a.m.; I had trouble getting out of bed in time. Driving home after school, I found myself dozing at red lights. A medication I was taking sent me on frequent trips to the bathroom; it’s not cool to be late for class or to leave in the middle.

By May 2002, I had to stop working. I was calling in sick too often to be any good to my students. I had trouble reading. Grading papers took more energy than I could muster. I had grown pale and thin and suffered bouts of encephalopathy: toxins, not processed by my failing liver, lodged in my brain, resulting in bizarre behavior, like peeing on the floor, and ambulance trips to the hospital of which I have no memory. My muscles began to atrophy. I was no longer the mighty force on my over-40 softball team or a dazzling dinner-and-dance partner.

I excused myself from a dinner party once to lie down for a bit. When my friends woke me four hours later, I didn’t know where I was and barely knew who they were, so they took me to the hospital, where the doctors gave me some medicine and asked if I could name the president and my wife’s birthday. I insisted—wrongly—that her birthday was the same as mine. But as a way-left liberal, I am obsessed with George W. Bush, so the president question was a no-brainer even for a person temporarily deprived of his brain.

For five years, my condition had seemed little more than background noise. Now it reared up as what it really was: end-stage liver disease. I experienced nausea, cellulitis (which turned my lower left leg black), severe fatigue, swollen abdomen, legs and groin. Not all at the same time, and not in any pattern I could predict. The only thing predictable about the course of hep C is that it’s downward.

I figured I was an excellent candidate for a transplant. I am not a smoker. I had negative colonoscopies and endoscopies. I breezed through the blood tests, CAT scans, DEXA scans and echocardiograms. I presented myself to the hospital’s social worker as an emotionally stable person with a wife and friends who would provide round-the-clock care for two to three months after the surgery. And I have insurance: Transplant surgery costs upward of $350,000. There would be a light at the end of this very dark tunnel. I was in a hurry to get to it.

SO IT WAS THAT WARM MORNING IN MAY 2002, standing at the mailbox, tuna sandwich in one hand, my future clutched in the other. The letter fairly vibrated in my hand. I opened it slowly as I made my gimpy way back upstairs to the kitchen. The refrigerator door stood open and my wife stood over a mound of minced tomatoes. I read the first line.

“We regret to inform you ... “
I flung the letter at my wife and let out a roar like unto death itself. I threw the sandwich into the refrigerator as hard as I could. I wanted—needed—the atavistic thrill of exploding tuna.

But I was denied even that small satisfaction. The sandwich shot past the bottles and jars and Tupperware and landed neatly in its plastic wrap. I should count myself lucky, because once you start wiping up great wads of tuna salad from the walls of your refrigerator you might as well clean the whole dang box. That’s too wretched a task even on the best day of your life. I wanted to pick up the refrigerator itself and hurl it out the window. Maybe I could hire three or four guys from the Millionair Club to heave it through the window for me. Nothing less would express how rotten I felt. I was dying of a monster blood virus and I didn’t want anything but my rightful place in line for some poor, dead guy’s liver that would otherwise go to waste.

Maybe I should go to Spain where there are no motorcycle-helmet laws and livers aplenty. The waiting list here is very long. Whenever a state decides to make motorcycle helmets mandatory, organ donations plummet. Other things conspiring against me: a drop in gang violence, lower speed limits in Montana, people mellowing out through meditation and yoga, automobile air bags and the Department of Homeland Security.

This kind of thinking leads to madness. Let it go, let it go. I PICKED UP THE LETTER. It said I was not good transplant material because, over the course of my life, my use of alcohol was considered excessive.

What? I hadn’t had a drink in five years. Even in my younger, wilder days, booze wasn’t a big deal. Sure, I enjoyed my beer. But beer with pizza after a ballgame isn’t drinking, it’s a picnic. Wine with dinner? Of course. But never had a DUI. Never had an accident.

I asked the transplant folks to define “excessive.” Their answer: Drinking more than one glass of wine a week, smoking or using any illegal drug was a sign of chemical dependency.

I begged to differ, so I was sent to a specialist who determined that, in fact, I was not chemically dependent. I now have an official paper stating that I am not an alcoholic or a drug addict. Do you? I’m like the guy who gets released from the mental hospital and is given a paper saying that he is no longer “mental.” He has proof he’s not crazy. Do you?

It made no difference to hospital officials. They asked that I attend Alcoholics Anonymous meetings for six months and submit to random urine tests to see if I could “handle this pressure-packed time without resorting to drinking, smoking or using illicit drugs.” I felt like they were robbing six months of my life—and daring me to fail.

But they have their rules. And I have this lousy liver. So I went to AA. It was pretty good. The people I met there were caring, thoughtful and intensely honest. When I finally gathered the courage to speak at a meeting, I suggested that part of the reason we drink is because we are awash in media fairy tales of relentlessly happy couples sipping cocktails on virgin beaches or of beautiful women who will be your pal for the night if you just drink the right beer.

I was shouted down. In AA, there are no excuses. Just tell your story and sit down.
That’s what I did. And on the day before Thanksgiving wonder of wonders and hallelujah!—I was welcomed onto the transplant waiting list.

They gave me a pager. I felt halfway cured.
IT’S BEEN ALMOST A YEAR. There is no way to know when a liver will show up with my name on it. I need to be good to go at all times. Think about it: I could be talking on the phone with my parents in Florida and—beep! beep!—my pager goes off and life changes forever. They’ll just have to hold their breath, take a long walk and pray until the next phone call.

A few hours later, I will emerge with a pre-owned liver and a regimen of expensive medicine, frequent hospital visits and unpleasant complications.

Everyone has complications. And I will always have hep C, but my new liver will buy me some time before it, too, becomes diseased. The oddsmakers give me an 85 percent chance to make it a year; 67 percent to make it five years.

But that all presumes I survive surgery.

What if there’s a problem with the anesthesia or an infection or some simple mistake? Maybe I should write in permanent marker on my stomach—LIVER RECIPIENT!, along with my Social Security number and blood type—just in case.

What if my body rejects the liver? What if people bring me balloons with Tweety Bird on them?

I had polio when I was 6. We were living in Chicago then, and I was sent to a hospital for what seemed like months. I remember thinking the nurse, Miss Tripp, was mean and that hospitals were such sad places.

They still feel sad to me: the matter-of-fact doctors and their eager interns; the janitors who scrub the floors and don’t make eye contact; the guy in the next bed who watches dopey TV shows; the awkward visits by his relatives and minister. We, the sick, look at those who are not as if they won the lottery and we won the wheelchair. Even the floor-moppers have it better than we do. Oh, to be able to mop the floor.

For months after I got sick, I divided the world into those who have hep C—namely, me—and the rest of the world. I felt bitter, alone and alienated from all that is fun, beautiful and tender. It must be how combat veterans feel. They know things that they don’t want to talk about and we don’t really want to know. I live in my own little combat zone and I am the walking wounded.

It took months before I told more than five or six friends. This disease is common among drug addicts who use needles. I could imagine minds at work, speculating, judging. I really am not certain how I got it. And once you have it, the how doesn’t much matter. So now I tell everybody. Let them speculate. Let them judge. As if one dying man is more tragic than another.
PEOPLE SAY I AM BRAVE, and ask how I manage. I have no good answer.

I accept that I am living and dying on the edge of limited time. Aren’t we all? But I have made no pledge forswearing self-pity, anxiety, anger or depression. Expressions of love from my wife get me through the hard days. Being sick and alone has got to be the worst. I urge you to visit, write a note or make a call to the sick and shut-in. Just to say hi. Someday you will be grateful for the same.

All my life, I’ve been blessed with a light heart and a positive attitude. I love James Thurber, P.G. Wodehouse, Mark Twain and the cartoons in The New Yorker. I love Laurel and Hardy, Erma Bombeck, Monty Python, Lenny Bruce, Richard Pryor, Bill Cosby and “Catch-22.” I own a whoopee cushion, a red nose and a beanie with a bicycle horn glued on top. I once worked as a street clown with a group called Free Public Laughs in Chicago.

Every time I laugh, I feel my guts being bathed in milk and honey and my mother’s chicken soup. Sometimes I’ll bump into one of my wise-guy friends and he’ll say, “Hey! You’re not dead yet?” It’s OK. I laugh. I laugh at this rotten disease and curse it, rip out its throat and kick it down the stairs. And then I laugh some more. Laughter is strong and it heals. There is scientific proof. Read Norman Cousins’ “Head First: The Biology of Hope and the Healing Power of the Human Spirit.” Read “Laughter is the Best Medicine” in Reader’s Digest. Need I say more?

My wife and I are blessed with friends who overwhelm us with their generosity. They help pay insurance premiums and bring us homemade meals on wheels. They give us tickets to the opera and ballgames. Two friends work through our combined Rolodexes each month, encouraging small gifts of cash and time. Former students send wall-sized sheets of paper scribbled with good wishes and poems. One student wrote “To Mr. Slater. R.I.P.” He wants me to Rest. In Peace. If it sounds right to him, it sounds right to me.

I was never one to send teddy bears, books or blankets in the wake of hurricanes, earthquakes or bombings. Bless those who do. I shall join their ranks. For this is my earthquake. I must take the pills, exercise, rest, laugh frequently and start sending those teddy bears, and whatever else the Red Cross says it needs. LIKE YOU, I’M NOT READY TO DIE. And this wasn’t supposed to happen to me.

If there was any justice in the world, surviving polio should have given me a pass on dramatic diseases for the rest of my life. It left me with a slight limp, but it exempted me from the draft during the Vietnam War. I’ve lived an active life but am not a thrill-seeker. A comfortable chair and a good book are always preferred over activities requiring helmets, snowshoes or even golf clubs. And in 1997, when I was 51, I did the right thing and got my over-50 physical.

Two days later, the doctor called to order a follow-up visit. I imagined a stern talking-to about prostate cancer and cholesterol levels. Turns out those things were fine. But my blood and enzyme numbers showed I had end-stage liver disease. Then the doctor explained what “end-stage” means.

Here I was doing all the right things—teaching school, building community, staying healthy, getting a physical—and I get a fetid pie thrown in my face.

I left the office and drove to Alki Beach. It was raining, and I was grateful for that. A beautiful day would have been like a slap in the face. I remember the gloriously wretched smell of low tide. I sucked in the smell of the rotting sea world. Misery loves wretchedness.

So this is how it’s going to happen for me. A long, daily death. I’ve had a few friends die of AIDS, a few of cancer, a couple by suicide and one from hang gliding. Now it’s my turn?

A SLOW-MOTION DEATH IS NOT HOW I IMAGINED my life would be, or cease to be. It allows for too much contemplation. I prefer to “be here now.” Big questions of cosmology and cosmogony are best left alone. But these days, I can become obsessed by death. I could die on the surgery slab, an actor’s last scene in an operating “theater.” Or l could be one of the 2,500 sick folks who die each year waiting for a new liver.

And of course there’s still time to be run over by a truck. At Alki that day, and many times since, I have found myself confused, sad and defeated, alone with my whoopee cushion and James Thurber. I imagine conversations that go like this:

Say, Leroy, did you hear that Slater died?
No kiddin’? Man, Slater was a real stand-up guy.

Yes, he was good people. I’ll miss him.

Yeah, me too. Listen, I’m kinda hungry. You wanna get somethin’ to eat?

Yeah, sure. Let’s go.

That’s how it is and how it’s always been. How soon they forget. So I imagine my funeral and hope that people tell the best stories about me and describe me well in all my complexity. I think the wake should continue for about a week. If I have any money left, I’ll leave it for the catering. Lay me in a hammock with my arms folded behind my head and the ballgame on the radio. Or bury me in a plain box under some rosebushes to atone for my sometimes lazy approach to recycling.

My brother says he plans to defy the maxim that says you can’t take it with you. He wants me to dig a big hole and put him and all his possessions in together. I will do it for him if he gets run over by that truck before I do.

I don’t care much about material things. But what about all my book learning, street smarts, good intentions, the search for meaning, the love received? It seems like such a waste to have it thrown in the grave with me. Any love I have given I know will last forever. There is comfort in that. Too much time at the office? Not I. I was dancing, singing, having dinner parties, making art, planting a garden.

So why me? Is there a cosmic reason? Or is it just my time to get out of the way and free up a parking space?

The answer is there is no answer. Just suffering and, if you are lucky, meaningful work, good friends, a few opportunities to love and time to plant tomatoes.

IF I SOUND HOPELESS AND GRIM, keep in mind this is not some treatable case of prostate cancer. This is me falling down on the sidewalk and bleeding to death because my blood will no longer coagulate (highly unlikely except in my overworked imagination). I look for hope, laughter and love in the neighborhood of my heart, but I live in the shadow of the valley of death. I look at my neighbors in Ballard, and they give me joy and tuna casseroles. About a week after Sept. 11, 2001, I was scanning the shelves of the Elliott Bay Book Co. Few of the titles seemed relevant to this new world reality. How could I buy a book about the Civil War or the flowers of the Sahara? Here we were, alive in Seattle, trying to understand why some 3,000 of us were dead in New York. A generation of war was soon to come and attention must be paid. We are on red alert every day.

In some ways, this world in turmoil has taken the pressure off me. Now we all have a dis-ease. We are all targeted. Every lone lunch bucket on the sidewalk warrants a call for the bomb squad. I feel the same way every time I have a nosebleed.

LAST YEAR, MY DOCTOR TOLD ME I HAD TWO TO THREE YEARS LEFT to live
with my diseased liver. I said, “WHAT?” He said three years is a long time. He is from a country where the average life expectancy is 57 years.

I am 57.

My doctor is a good man and I have come to like him enormously. I reminded him that in this country, we spend billions on medical research and have the best of everything at least those of us with insurance and expect to live very long lives. I said that in three years, this country will see a whirlwind of change and I want to be there for it. I want to see if they discover weapons of mass destruction in Iraq. I want to see the Mariners win it all someday. I have planted a small star jasmine whose vine will grow slowly and produce enough blossoms that will waft sweet springtime delight into our bedroom. That will take at least six to seven years. The doctor smiled and said, “I understand. But you have hepatitis C.”

On the drive home, I threw up. It wouldn’t be the last time.

Jack Slater is on a medical leave from the Seattle Public Schools, where he teaches history. He was born in Chicago, graduated from Calvin College in Michigan and worked for 20 years as an actor and humorist. He has been a community and political activist and is an avid artist and gardener. He lives in Ballard with his wife, Deborah Swets, the executive director of CityClub. You can reach him at jslater@sseattletimes.com
*Seattle Times photographer Alan Berner can be reached at 206-464-8133 or aberner@seattletimes.com
*To reach an editor about this project, contact Jacqui Banaszynski at 206-464-8212 or jbanaszynski@seattletimes.com
Copyright 2003 The Seattle Times Company

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October 20, 2003


Massachusetts Prisons Have High Disease Rate

Massachusetts prisoners have some of the highest rates of infectious disease in the country, according to a study slated to be released next week.

Citing a study from the Massachusetts Public Health Association, The Boston Globe reported that Massachusetts inmates have the seventh-highest rate of HIV infections in the nation. And 44 percent of women and 27 percent of men were diagnosed with Hepatitis C according to the report.

Disease specialists theorized that the higher rate of intravenous drug use in the Northeast could be part of the cause, the Globe reported.

Researchers and others have called for health care improvements for parolees so that they will not infect the communities they return to after serving their sentences.
Much of the problem is related to substance abuse, Dr. Alfred DeMaria, the state's director of communicable disease control, said.

"Substance abuse is clearly the predominant risk factor," DeMaria said.
"And if you look at the pattern of imprisonment in this country over the years, drug crimes are drawing longer and longer sentences."

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October 21st, 2003


Schering-Plough Gets EU Ok For New Pegintron Label

Schering-Plough Corp. said Tuesday that the European drugs regulator has approved a new label for chronic hepatitis C treatment PegIntron Injection.

Schering-Plough Europe said that the European Agency for the Evaluation of Medicinal Products, or EMEA, has approved a new label for PegIntron (peginterferon alfa-2b) Injection, the most-prescribed interferon treatment for chronic hepatitis C.

As noted in the new label, patients are no longer required to undergo liver biopsy to confirm diagnosis of hepatitis C and to indicate the potential for treatment impact.

Traditionally, liver biopsy in patients with chronic hepatitis C has influenced treatment decisions and has been used during treatment to determine whether the disease has stabilized or progressed. The revised PegIntron label clarifies for physicians that a biopsy may not be necessary if a decision to treat has already been made based on other factors.

For example, the EMEA noted that, since the viral eradication rate is high (88 percent) for patients with hepatitis C genotype 2/3 virus taking PegIntron and Rebetol (ribavirin) combination therapy, treatment is often indicated even if the biopsy turns out to be benign. “Many patients have been put off by the idea of undergoing an invasive procedure like liver biopsy,” said Thierry Poynard M.D, Ph.D., Professor of Medicine, Groupe Hospitalier Pitie-Salpetrier, France. “The new PegIntron label eliminates a barrier to treating patients at risk for hepatitis C. This is an important step in fighting this serious disease.” PegIntron is a longer-acting form of Intron A (interferon alfa-2b, recombinant) Injection that uses proprietary PEG technology developed by Enzon, Inc. of Bridgewater, N.J., USA.

PegIntron, recombinant interferon alfa-2b linked to a 12,000 dalton polyethylene glycol (PEG) molecule, is a once-weekly therapy dosed according to patient body weight that is designed to achieve an effective balance between antiviral activity and elimination half-life. Schering-Plough holds an exclusive worldwide license to PegIntron. Rebetol is an oral formulation of ribavirin, a synthetic nucleoside analog with broad-spectrum antiviral activity.

It is approved worldwide for use in combination with PegIntron or Intron A for the treatment of adult patients with chronic hepatitis C. Schering-Plough has rights to market oral ribavirin for hepatitis C in all major world markets through a licensing agreement with ICN Pharmaceuticals Inc. of Costa Mesa, Calif., USA.

Chronic hepatitis C is estimated to affect more than 10 million people in major world markets. In Europe, chronic hepatitis C is a leading cause of chronic liver disease and one of the most common reasons for liver transplant.

Schering-Plough Europe, based in Brussels, Belgium, is a country operation of Schering-Plough Corporation of Kenilworth, N.J., USA.

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New Mexico Inmates to Get Hepatitis Treatment
AP

New Mexico for the first time will began treating prisoners for hepatitis C, a virus that infects about a third of the state's 6,200 inmates.

A new generation of medicines that can effectively treat the virus was not developed until about two years ago, said Dr. Frank Pullara, medical director for the state Corrections Department.

Hepatitis C, often contracted through intravenous drug use, can destroy the liver in a small percentage of those who get it.

Treatment can range from $15,000 to $30,000 per patient. However, Pullara said that's only a fraction of the $500,000 price tag of a liver transplant which the state likely would have to pay for if an inmate needed it.

"What we want is to catch those people who are going to have significant damage to their livers if we don't treat them,'' Pullara said. "If we don't intervene now, sooner or later, they're going to get into trouble."

A small group of inmates will begin a regimen of pills and shots, Pullara said.
Four will be undergoing treatment by next week, said Pullara, a University of New Mexico School of Medicine liver disease specialist who along with other medical experts developed a protocol for treating inmates for hepatitis C.

Most people with hepatitis C don't become seriously ill. Pullara said many with the virus don't even know they have it. There often are no symptoms. Others feel tired or have mild flu-like symptoms.

However, 20 percent to 25 percent of those who contract a chronic infection develop serious complications. They can develop liver cancer or cirrhosis or their livers ultimately can stop working.

Pullara said there is no way to tell at the start of the disease who might develop complications.

Inmates with hepatitis C now have their blood tested periodically to see whether their liver function is deteriorating.

If a series of those tests reveals an inmate is likely to suffer liver damage over time, that inmate is referred to a treatment review committee and their liver functions are monitored more closely. The committee decides for which inmates the medication would be appropriate.

Prisoners can decide against treatment. Pullara said side effects are "horrendous" and include nausea, vomiting and possibly severe depression.

"If I had 100 people sitting in this room who have hepatitis C I could only probably convince 10 to take the treatment," he said. "This is a fairly brutal treatment."

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Pamela Anderson Says Hepatitis C May Kill Her in a Decade

Pamela Anderson says hepatitis C, which she was diagnosed with in 2001, will probably kill her in a decade.

"I think I've got a good 10 years left in me, which is sad, too. Maybe 15, if I'm lucky," Anderson tells Us Weekly magazine in a first-person story for the Nov. 3 issue.
"It's scary, but lately I've been feeling great. For some reason, my liver keeps getting healthier."

Hepatitis C causes inflammation of the liver, which can lead to cirrhosis, liver cancer and liver failure. About 3.9 million Americans have the disease. Anti-viral drugs are a standard treatment, and therapy is successful about half the time.

But Anderson isn’t taking interferon, the injectable drug hepatitis patients often use. Her homeopathic doctor, Wendy Hewland, tells the magazine she "made a single remedy specifically for Pam" that Anderson is using as an alternative form of medicine.

The 36-year-old actress, who starred in the TV shows "Baywatch" and "V.I.P.," also says she's no longer planning to marry singer Kid Rock, to whom she got engaged in April 2002.

"We're not engaged anymore. Our relationship is not really something you put a label on," she says. "He wanted to buy me a house in Malibu, Calif., (in August), but the thing is, I really just need to be with my kids and work on their relationship with their father."

That would be former Motley Crue drummer Tommy Lee, with whom she resolved an ugly custody battle in January. The couple married in 1995 and divorced three tumultuous years later.

"There's definitely a lot of love and history between Tommy and me, that's for sure. It doesn't matter whether we're together or not. We're crazy about each other always have been, always will be,'' Anderson says.

"I'm just happy that my kids (Dylan and Brandon) are having a healthier, better relationship with their dad. Now we spend a lot of time together as a family we go to movies, we cook dinner, everything."

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Fast-Track Review Speeds Japan Pegasys Approval

A fast-track review helped Chugai/Roche's Pegasys (recombinant peg-interferon alfa-2a) gain Japanese approval for chronic hepatitis C less than a year after filing. The submission was made in mid-November 2002, resulting in a final clearance last week. It is the first pegylated interferon approved in Japan, where around 1.5 million people have chronic hepatitis C, of whom 30-40,000 are receiving conventional interferon therapy.

Pegasys's single once-weekly injection regimen (a fixed 180ug subcutaneously) will considerably simplify treatment, which should lead to rapid adoption, the firms predict. Local trials (24 weeks of monotherapy) gave an overall sustained virological response of 36%, higher than standard interferon, Chugai noted. 90 micro g and 180 micro g injection formulations have been approved and should be price-listed and launched late this year, into an interferon market which has grown by 13% on average over the last four years.



Laboratory Corporation of America. (LH) To Offer Liver Fibrosis Assay HCV FibroSure™
PRNewswire

Through Exclusive Relationship With BioPredictive Laboratory Corporation of America Holdings (LabCorp®) and BioPredictive, a French diagnostics firm, today announced an exclusive partnership that combines LabCorp’s expertise in infectious disease testing with BioPredictive’s noninvasive, predictive testing technology to quantitatively determine the amount of liver fibrosis, and the rate of its progression, in hepatitis C (HCV) patients. HCV FibroSURE™ is expected to be broadly available in the U.S., only through LabCorp, beginning in the first quarter of 2004.

This partnership gives U.S. physicians greater options when assessing their HCV patients for liver fibrosis. As leaders in their fields, both BioPredictive and LabCorp bring a rare scientific expertise to the relationship that will benefit U.S. physicians in search of the most up-to-date and effective treatment options for HCV.

HCV FibroSURE™ is a noninvasive blood test, which uses a combination of six serum biochemical markers in a patented algorithm to predict fibrosis and necroinflammatory activity in the liver. The extent of fibrosis and necroinflammatory activity in the liver is a key component of assessing the need for therapy in HCV infected patients and of predicting the likelihood of progression to cirrhosis.

The current standard of care for assessing liver fibrosis and necroinflammatory activity in HCV patients has been a liver biopsy. However, a liver biopsy is an invasive medical procedure that carries with it a risk of serious adverse events due to bleeding and/or other complications.

Using the patented algorithm analysis of results from six serum biochemical markers, HCV FibroSURE™ has been shown in several studies to lead to a quantitative and reproducible assessment of fibrogenic and necrotic activity in the liver of HCV patients. The blood sample can be readily collected in minutes and results can be returned to the physician within days. The innovative, highly sensitive HCV FibroSURE™ assay provides an easily accessible alternative to a liver biopsy in HCV infected patients.

“The type of scientific and corporate partnership we have with BioPredictive is a key component of LabCorp’s strategy to bring the latest in diagnostic technology to the medical community,” said Myla P. Lai-Goldman, M.D., LabCorp executive vice president, chief scientific officer and medical director. “As the only U.S. clinical laboratory offering BioPredictive’s groundbreaking technology, physicians now have additional assessment options for their HCV patients. We are pleased to add this test to our broad menu of clinical assays for this disease.”

“When biotechnology companies need a clinical laboratory partner, they look for a company with a proven business strategy, as well as scientific and technological expertise,” said Dr. Thierry Poynard, a world-renowned hepatologist, head of Hepato-Gastrotroenterology department in Pitie- Salpetriere Hospital in Paris, researcher and founder of BioPredictive. “We are excited to be working with LabCorp because they are leaders in the world of hepatitis testing, and have a keen understanding of the importance of new technology to improve the management of HCV patients.”

About BioPredictive
BioPredictive is a young French start-up of Paris-University, created in 2002, whose main purpose is studying, designing, and developing biological tests. The concept is to improve the management of disease by replacing invasive strategies with noninvasive strategies. The first step has been the discovery and development of biochemical markers of chronic liver disease. Fibrotest is a biochemical marker of liver fibrosis and Actitest is a marker of inflammation and necrosis of the liver. BioPredictive is the company licensed by Assistance Public-Hopitaux de Paris (AP-HP) to use and sell the FibroTest and ActiTest noninvasive tests. These tests will be available exclusively from LabCorp in the U.S. under the name HCV FibroSURE™.

One year after FibroTest-ActiTest commercial launch, BioPredictive performs over 2,000 tests per month and services 150 private and 12 public hospital laboratories in France, Switzerland, Portugal, Morocco and Mexico. Our partners are Paris Biotech, AP-HP, CNRS, Universites Paris 5 and Paris 6. BioPredictive was rewarded by the French research ministry at the Fourth National Contest of innovative companies. To learn more about BioPredictive, visit the web site at: http://www.biopredictive.com/

About LabCorp
Laboratory Corporation of America® Holdings is a pioneer in commercializing new diagnostic technologies and the first in its industry to embrace genomic testing. With annual revenues of $2.5 billion in 2002, over 24,000 employees nationwide, and more than 200,000 clients, LabCorp offers over 4,000 clinical assays ranging from blood analyses to HIV and genomic testing. LabCorp combines its expertise in innovative clinical testing technology with its Centers of Excellence: The Center for Molecular Biology and Pathology, in Research Triangle Park, NC; National Genetics Institute, Inc. in Los Angeles, CA; ViroMed Laboratories, Inc. based in Minneapolis, MN;
The Center for Esoteric Testing in Burlington, NC; and DIANON Systems, Inc. based in Stratford, CT. LabCorp clients include physicians, government agencies, managed care organizations, hospitals, clinical labs, and pharmaceutical companies. To learn more about our growing organization, visit our web site at: http://www.labcorp.com/.

Each of the above forward-looking statements is subject to change based on various important factors, including without limitation, competitive actions in the marketplace and adverse actions of governmental and other third-party payors. Actual results could differ materially from those suggested by these forward-looking statements. Further information on potential factors that could affect LabCorp’s financial results is included in the Company’s Form 10-K for the year ended December 31, 2002 and subsequent SEC filings.

Laboratory Corporation of America Holdings
CONTACT: Pamela Sherry of Laboratory Corporation of AmericaHoldings,
+1-336-436-4855, or shareholder direct, +1-800-LAB-0401, orCompany
Information, http://www.labcorp.com/
Web site: http://www.biopredictive.com/
Web site: http://www.labcorp.com/

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October 22nd, 2003


Schering-Plough Posts Quarterly Loss, Sales Fall
Bill Berkrot and Ransdell Pierson

Struggling drug maker Schering-Plough Corp. Wednesday reported a third-quarter loss as sales fell and it increased reserves for litigation related to investigations into its sales and marketing practices.

Schering-Plough shares were off nearly 6 percent to near a seven-year low as it battles a host of problems, especially evaporation of Claritin sales. The former $3 billion a year allergy drug went off patent last year and the company began selling it over-the-counter at a fraction of its former price.

Chief Executive Fred Hassan, hired earlier this year to turn the company around after bringing Pharmacia Corp. back to financial health, promised no quick fixes.

“You really need to like both challenges and adventure to work at Schering-Plough right now,” Hassan said on a conference call with investors and analysts. “It is a long process and for many of us it could be a painful process, but you will see a new Schering-Plough emerge.”

The Kenilworth, New Jersey-based company said it lost $265 million, or 18 cents per share, compared with a profit of $429 million, or 29 cents, a year ago.

Revenue fell 16 percent to $2.0 billion from $2.4 billion, reflecting declining sales of its hepatitis C drugs and the company’s former flagship medicine Claritin.

Excluding the 24 cents a share from the litigation charge, Schering-Plough earned 6 cents a share—shy of the 10 cents a share Wall Street was expecting.

NO FORECASTS
Hassan declined to provide any future earnings projections, citing uncertainty over when one of the company’s hepatitis drugs may face cheaper generic competition and other factors. “It’s not productive to give lot of numbers which can be changed overnight,” Hassan said.

The company did provide one number that appeared to unsettle investors—the addition of $350 million to litigation reserves for ongoing investigations in Massachusetts and Pennsylvania.

The company said the reserves were an estimate and that actual legal costs could be less. But it cautioned that costs could also “materially exceed” the liability reserves Schering-Plough has set aside.

“We still have a long, hard road ahead on legal front,” Hassan said.

Meanwhile, sa