the age...not good news

Avantogen fails to reveal adverse findings
Rebecca Urban
June 6, 2006


PUBLICLY-LISTED biotechnology company Avantogen has failed to inform the market of adverse findings from its anti-cancer vaccine clinical trial — despite having known about the results for at least two months.

The Age has obtained a copy of a draft announcement from the company dated April 3, 2006, revealing findings from a two-year study of the vaccine in prostate cancer patients.

It had not been released to the Australian Stock Exchange by close of business yesterday.

The announcement, headed "Confidential Draft, Avantogen announces outcome of Pentrys Trial in Prostate Cancer" also revealed the company planned to dump the vaccine from its portfolio because patients failed to respond to the treatment.

"Avantogen … reports that its Pentrys trial completed at the Austin Hospital, the Royal Melbourne Hospital and the Peter MacCallum Institute failed to achieve a significant clinical result," the statement says.

It goes on to say that the company received a report on the clinical trial on March 31.

Avantogen's failure to release the information as soon as it became available appears to be in breach of the stock exchange's continuous disclosure requirements. The company is also listed on the US Nasdaq and Frankfurt Stock Exchange.

Avantogen chairman Richard Opara, who is in Hawaii on business, refused to comment on the draft document when contacted by The Age last night.

"I don't particularly want to talk to you. You are going to write what you like anyway," he said.

Asked when he planned to alert shareholders to the results of the trial, Dr Opara said: "When it is appropriate."

The phase two study was to be carried out on 40 patients. Only 30 patients completed the study.

The draft announcement is dated a week after Avantogen announced an entitlements issue to raise $5.7 million from shareholders.

The offer was scheduled to remain open until May 2.

The company's share price has fallen more than 25 per cent to 10.5¢ since early April.