Tragen Pharmaceuticals is seeking to continue work begun at the University of California at San Diego and continued with F. Hoffmann-La Roche Ltd.

Tragen, of San Diego, was founded in 1997 and originally named Immunogenex Inc.

After Tragen received most of its development money from Roche, which totaled about $9 million, Basel, Switzerland-based Roche returned rights in 2001 to ISF154. ISF154 is now in Phase II trials, begun earlier this year, for the treatment of chronic lymphocytic leukemia.

"Roche was partnered with us for a short period of time," Tragen President and CEO Charles Prussak said, noting that Roche didn't anticipate it being a blockbuster drug. "They made a business decision that there wasn't an adequate market for them to continue to pursue this particular molecule."

In ending the relationship, Roche gave Tragen funding to continue development, and that is the funding on which the company is operating.

ISF154 is designed to activate dormant leukemia B cells and rally T cells to selectively attack blood- and tissue-based leukemia cells. It is based on technology developed at UCSD by Thomas Kipps, professor of medicine and deputy director of research at the Rebecca and John Moores UCSD Cancer Center.

Tragen is focused on both cancer and autoimmune diseases, Prussak said, and the company will be seeking additional funding in a private financing round later this year.

"We're looking for $15 million to push this particular compound into pivotal trials," Prussak said, noting that that level of funding would support the company for about three years.

Tragen also has other candidates in the tumor necrosis factor family of molecules, primarily for cancer, that have completed preclinical studies and are ready to enter the clinic as soon as funding is arranged, he said.

The most important thing to note about the company, Prussak said, is that it has a clinically active product that has shown an impact on chronic lymphocytic leukemia and potentially other major cancers such as non-Hodgkin's lymphoma and multiple myeloma.

"The $15 million will allow us to start our second indication" with ISF154 in lymphoma, he said.

Tragen essentially is operating on a virtual basis, with only eight employees, and is seeking partners to continue its evolution.