AbbVie Inc (ABBV), GlaxoSmithKline plc (ADR) (GSK): Does ChemoCentryx Inc (CCXI) Have a Platform Problem?

What’s the point? When companies develop novel anti-inflammatory drugs, they look up and see Humira and Remicade. It’s a great commercial path to pursue. The idea of getting in on the ground level of the next big inflammation treatment pushed GlaxoSmithKline plc (ADR) (NYSE:GSK) to partner with ChemoCentryx Inc (NASDAQ:CCXI) in 2006. The two are developing drugs against four targets, including the receptor CCR9 with vercirnon. Although the lead drug failed its first late-stage trial, the pair has had success elsewhere. GlaxoSmithKline plc (ADR) (NYSE:GSK) is now financially responsible for developing CCX354 for rheumatoid arthritis after positive phase 2 data. Additionally, the company is expected to make a decision on its option for CCX168 for treating ANCA vasculitis by the end of this year. Will recent developments affect that decision?

A silver lining?
There are a total of 10 drug programs ranging from preclinical to late-stage development at ChemoCentryx Inc (NASDAQ:CCXI). All target a unique chemokine receptor. I don’t know how differently each works, but if I may leverage my understanding of other anti-inflammatory drugs targeting various interleukin, JAK, or TNF-alpha receptors, then it seems entirely plausible that inhibiting some receptors will prove more clinically beneficial than other seemingly similar targets. Additionally, the failed phase 3 trial with GlaxoSmithKline plc (ADR) (NYSE:GSK) was just one of four for vercirnon and the CCX140 trial is still ongoing and has yet to officially be labeled as a failure.

Foolish bottom line

Whatever stance you take with recent developments at ChemoCentryx Inc (NASDAQ:CCXI), I would certainly begin to play devil’s advocate at an increasing rate. If there is any chance that targeting the chemokine system as an effective means of managing inflammation doesn’t work, then the risk-to-reward balance certainly wouldn’t support an investment. There is still potential for any one of its clinical or preclinical programs to work, I suppose, but I believe there are better investments out there.

The article Does ChemoCentryx Have a Platform Problem? originally appeared on Fool.com and is written by Maxx Chatsko.

Fool contributor Maxx Chatsko has no position in any stocks mentioned. Check out his personal portfolio, his CAPS page, or follow him on Twitter @BlacknGoldFool to keep up with his writing on energy, bioprocessing, and biotechnology.The Motley Fool recommends and owns shares of Johnson & Johnson.

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