BioWorld International Correspondent

PARIS - Following the publication of the complete map of the human genome, Genset SA announced the launch of Genset Pharma, a new project marking a further stage in its strategy to shift away from genomics research toward drug discovery.

While still describing itself as a genomics company, Paris-based Genset is now dedicating itself to developing a pipeline of validated targets and drug candidates, focusing on two therapeutic fields: metabolic disorders and central nervous system diseases.

The company embarked on this strategy shift last August, and said the "progression from pure genomics to medical genomics is accelerating with the mapping of the human genome," adding that its new strategy has already yielded "promising results." In effect, a few days earlier it had published positive preclinical data for its leading compound, the protein Famoxin, which it is developing for the treatment of obesity. The publication of the data, attesting to the efficacy of Famoxin in tests on mice, was enough to send the company's share price soaring on the French Nouveau Marché (although it fell back later) and even earned it a spot on the evening television news.

Genset's new strategy, to which it is now "100 percent committed," says CEO André Pernet, is "not to offer services for the discovery of genes associated with diseases, but to identify drug candidates." As a result, the company is reorganizing its genomics research center at Evry, where it plans to lay off 82 people. At the same time, the development of its drugs business will require the creation of 28 other posts.

As part of its new strategic focus, Genset also will terminate all its genomics research contracts with third parties, most of which have already been completed or are due to expire within the next few months. The only collaboration that will continue will be the joint research program it is undertaking with Abbott Laboratories for the discovery of genes associated with bipolar disease. Even there, Genset said it intends to "review with Abbott the structure of this collaboration so as to bring it more into line with our new strategy."

In addition, the company is considering selling off its longstanding oligonucleotides business, although it is highly profitable and sales have risen rapidly over the past three years.

The next stage in Genset's drug development program will be the initiation of clinical trials of Famoxin, which are due to begin before the year's end. The preclinical study demonstrated that administering Famoxin to extremely obese mice subjected to a high-fat diet resulted in a significant reduction in their body weight without any alteration in the diet. Famoxin is a recombinant protein produced from the active fragment of the Acrp 30 protein, which is naturally manufactured by fleshy tissue but whose plasma rate is diminished in certain obese individuals.