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STRESSGEN COMPLETES MANUFACTURE OF HSPE7 FOR USE IN PHASE III STUDY

June 26, 2005

Stressgen Biotechnologies has completed the manufacture of HspE7, which will allow for the release of HspE7 for use in the a Phase III clinical study in recurrent respiratory papillomatosis (RRP). The study is expected to begin in the first quarter of 2006, pending review by the FDA.

The study will include multiple doses to assess the safety and efficacy of HspE7 in patients with RRP. Efficacy will be measured by increases in intersurgical interval. Because of the change in the biological profile of the newly manufactured HspE7, the company does not expect to gain concurrence from the FDA under a special protocol assessment.

In addition, Stressgen will be developing an additional HspE7 product that incorporates the reformulation of the compound with an adjuvant. The company expects to be prepared to begin a Phase I/II proof-of-concept study with this product in the first quarter of 2006.