Peplin maintains clinical trial ambitions

Peplin Biotech's (ASX:PEP) half-year results have revealed a AUD$13 million cash balance -- enough, the company says, to complete three Phase II clinical trials of its skin cancer treatment PEP005.

Just over $9.5 million of the balance came from a share issue to existing shareholders and institutions in December. The figures also show a final AUD$1.8 million termination payment from its collaboration with US company Allergan. Research and development expenses during the period rose $0.9 million, in line with increased product development activities, to $6.2 million. Peplin's net loss before and after tax was $4.1 million compared with a net loss of $3.9 million for the corresponding period last year.

After a discouraging second-half of 2004, during which Allergan handed back the rights to PEP005's development, Peplin was boosted recently by a Phase I safety and tolerability trial for PEP005. In 40 per cent of cases, a single application of its PEP005 topical gel for pre-cancerous skin 'sunspots' completely or substantially cleared the volunteers' actinic keratoses (AK), compared with 15 per cent for placebo patients.

"The positive Phase I trial results fundamentally validate our decision late last year to reacquire the product rights and to take forward the clinical trial program on our own," said CEO Michael Aldridge.