GTC stock, which trades under the symbol GTCB, nearly doubled in value yesterday, rising 83 cents, to $1.81, on the Nasdaq Stock Market.
ATryn’s key ingredient is recombinant human antithrombin, a blood protein that blocks one of the body’s clotting substances. GTC has developed goats that carry the human gene for antithrombin. Female goats with the gene produce the protein in their milk, and the protein can be extracted and purified for use in human treatments.
The company operates a farm in Charlton for genetically altered, or transgenic, goats.
Final approval to sell ATryn could come from the European Commission in about three months, according to GTC. The initial European market for ATryn would be surgical patients with an inherited antithrombin deficiency, a relatively small population that regulators estimate could total one in every 3,000 to 5,000 patients.
Yet ATryn could be a foot in the door for GTC as it seeks to widen the use of ATryn and the acceptance of transgenic medicines. GTC is working with LEO Pharma A/S to develop ATryn in Europe as a treatment for clotting in sepsis patients who have acquired an antithrombin deficiency, a market with an estimated 220,000 Europeans a year.
GTC is also conducting U.S. studies of ATryn in an effort to seek Food and Drug Administration approval in mid-2007.
Rodman & Renshaw analyst Navdeep S. Jaikaria, who yesterday raised his rating on GTC stock to “outperform,” told clients in a note that ATryn approval was “in fact a milestone achievement for GTCB. This is the first time ever that a transgenic goat product is approved for any indication, which serves to validate GTCB’s proprietary technology platform.”
In a written release issued yesterday in London, the European Medicines Agency Committee for Medicinal Products for Human Use said it had initially considered GTC’s patient studies too small. The studies contained information on five surgical patients and nine women in childbirth. At first, the committee disregarded the data from the pregnant women and told GTC it had not provided data on at least 12 patients, as required.
The European committee also questioned manufacturing changes that GTC made after the data had been collected.
GTC asked the committee to re-examine the data, and the committee convened a panel of European experts on blood and blood clotting. Yesterday, the committee reported that it concluded it could use the data from all the patients because all faced the risk of blood clotting, but it restricted the drug’s use to nonpregnant patients.
The committee also reported that manufacturing changes made by GTC were slight and that “the benefits of ATryn outweigh its risks.”
Regulators have been cautious about the use of animals to produce medicines, even as many researchers have devoted their careers to the field and companies have labored on limited funding to advance the technology, said Eric W. Overstrom, professor and head of the department of biology and biotechnology at Worcester Polytechnic Institute.
“The whole concept of a bioreactor, an animal-based bioreactor, this will really push that forward now,” Mr. Overstrom said. “If they’re (GTC) the first ones in, then I think you’re going to see a rollout, a domino effect.”
News of GTC’s advance raised the price of at least one other transgenics company. Shares of Pharming Group NV of the Netherlands rose 15 percent, to 3.71 euros, in European trading.
GTC has long collaborated with corporate partners interested in exploring new production methods, such as Abbott Laboratories and Bristol-Myers Squibb. The company has also worked, with government backing, on a malaria vaccine that could be produced in goat milk.
An approval in Europe, however, could bolster GTC’s ability to raise money and attract partners. The company ended the first quarter of this year on April 2 with a net loss of $8.5 million, or 14 cents a share, and a cash cushion of $15.6 million.
Mr. Newberry of GTC said the European recommendation allows the company to look at a variety of new options.
“Clearly, with this sort of validation, ‘Great science, but can you do anything with it?’ is a long way to being answered,” he said.