Avexa back to the drawing board on hepatitis B program

Melbourne-based biotech Avexa (ASX:AVX) has been forced to rethink its plans to develop its reformulated hepatitis B candidate AVX491.

A preclinical efficacy study showed the drug was inadequately absorbed by the body, so no significant decrease in viral load could be expected.

"We tried a new formulation to go forward with the project," said Avexa CEO Julian Chick. "The net result of the new formulation was that it didn't allow sufficient drug absorption. As a consequence we weren't able to get enough drug into the model and therefore we wouldn't expect a significant decrease in viral load."

AVX491 is a non-nucleoside inhibitor for the treatment of hepatitis B, and the company is reviewing the program for other ways to move AVX491 into clinical studies.

"We have a series in this class of drug and I think we need to go back and do a little bit more work, an examination of how we can go forward," said Chick.

Avexa is continuing to progress its other programs with the Phase IIb trial for AVX754, the HIV drug it acquired from UK company Shire Pharmaceuticals, due to start soon. Avexa also expects to begin animal studies for its HIV integrase and drug-resistant antibiotic by the end of the year.

"It's not like we're a one-product wonder and that we've struck an issue with that one product," said Chick. "We're still very focused on AVX754 and that will be the main driver for the company -- getting those Phase IIb results early next year."