In what can be termed as a setback to IDM Pharma's recent decision to evaluate strategic alternatives, sanofi-aventis has decided to discontinue participation in the development of Uvidem, IDM Pharma's investigational therapy being studied for the treatment of melanoma, with all rights to the product reverting to the company.

Uvidem is a therapeutic specific immunostimulant. It consists of mature dendritic cells loaded with lysates from melanoma tumour cell lines. Uvidem has been administered to 143 patients in clinical development.

In connection with the company's decision to evaluate strategic alternatives, IDM Pharma is expected to restructure, which would involve staff reductions in the company's workforce and a review of assets and costs associated with products under development. IDM Pharma's restructuring plan is expected to be finalised and approved by its board of directors during the first quarter of 2008.

However, IDM Pharma is expected to retain a core team in key functional areas and as part of the company's previously announced strategic initiatives, would continue to evaluate the Uvidem clinical programme, which recently completed phase II studies with promising results.

The company believes that its decision to evaluate strategic alternatives would bring about certain potential benefits, including reduction in infrastructure and operating expenses. Also, the restructured company may be a more attractive partner in any potential strategic transaction going forward, IDM Pharma noted.

"These decisions provide the company with increased flexibility in our assessment of strategic options," said, Timothy P. Walbert, president and chief executive of IDM Pharma. "In addition, we are continuing to pursue potential regulatory approvals for mifamurtide (L-MTP-PE) and the possible further clinical development of IDM-2101."

However, IDM Pharma noted that it would work with sanofi-aventis to conclude the Uvidem collaboration within the three month timeframe prescribed in their agreement.

IDM Pharma is a company with a focus on the development of innovative cancer products that either destroy cancer cells by activating the immune system or prevent tumour recurrence by triggering a specific adaptive immune response.