as unlikely to be on the market for five or six years. Bihain also made clear the medication would be destined for sick people who had tried classic ways of losing weight and who were at risk of developing diabetes or cardiovascular illnesses. "The eight percent reduction in body weight in obese mice is about as good as you could hope for," said Ian Smith, biotech analyst at Lehman Brothers. "That would be a very good result if the product turns out to be similarly effective in humans." While it will take years of research before the product is ready to be filed for regulatory approval, Genset could benefit much sooner from milestone payments paid by a licensing partner. The company, which has generated losses for years, would need backing to finance development of the drug. Last month, Genset Chief Executive Andre Pernet said he was talking with a number of major pharmaceutical firms about Famoxin. DEAL TO WAIT UNTIL AFTER HUMAN TRIALS But he told Reuters on Tuesday that the company planned to wait until the human trials had demonstrated the drug's effectiveness before signing a deal. "We can get a lot of money if we have a medication that works for humans," Pernet said in an interview. He said the company could expect an initial advance payment of 25 million euros and a total sum of 100 million euros excluding royalties. A partnership with an industry heavyweight would permit the group to turn a profit by next year, or three years sooner than otherwise possible. The pre-clinical success of Famoxin is a crucial step in the company's effort to develop drugs on its own. In the past it has relied on partnerships with big drug companies for its revenues. "Genset have a very, very interesting story in Famoxin which could help transform the group into a drug development operation, but it is still at an extremely early stage," said a London-based fund manager. A French biotechnology firm, Genset, has produced what may be a drug that could red...
