AEGiS-Reuters: Cell Genesys up on promising AIDS treatment

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Cell Genesys up on promising AIDS treatment

Reuters NewMedia, Inc. - Tuesday October 14 12:46 PM EDT


LOS ANGELES, Oct 14 (Reuters) - Investors rushed Tuesday to buy shares of Cell Genesys Inc following the company's announcement that its experimental gene therapy was successful in killing cells infected with the HIV virus.

Cell Genesys said late Monday it was able to genetically alter human immune cells so that they sought out and killed other HIV-infected cells. Unlike existing treatments, which can only suppress the virus, Cell Genesys said its therapy offered hope that the virus could be eradicated altogether.

Cell Genesys stock rose 2-3/4 to 11-1/4 and was among the most actively traded issue on NASDAQ.

The company's findings about a possible gene therapy to combat the virus come at a time when many people are looking for a next generation AIDS treatment.

The current standard of treatment -- protease inhibitor drugs -- have been highly successful in driving down viral load to non-detectable levels in thousands of patients. However, these drugs have not worked in all patients, and some people who initially respond to them have been shown to develop resistance over time.

"People are beginning to recognize the limits of protease inhibitors," said Cruttenden Roth analyst Wole Fayemi. "More (drug) companies are starting to look at immune based cellular therapies as the next wave of AIDS treatment."

Despite Cell Genesys' initial success in this area, Fayemi stressed the company has still not shown it works as effectively in actual patients as it does in cells in a laboratory.

In addition, he said several companies are working on similar treatments and competition among them could become intense. --Andrea Orr 213 380-2014


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