Discovery Laboratories, Inc presented additional clinical data from their primary Phase 3 study, the SELECT trial at the 2004 Annual Hot Topics in Neonatology meeting in Washington, DC on Sunday, December 12. Top line data previously reported from Discovery's pivotal multinational SELECT study showed that prophylactic Surfaxin (lucinactant) therapy increased survival of premature babies with Respiratory Distress Syndrome (RDS) compared with comparator surfactant replacement therapies. In addition, when treated with Surfaxin, more babies survived without developing debilitating chronic lung disease, also known as bronchopulmonary dysplasia (BPD), compared with those treated with Exosurf, a non-protein containing synthetic surfactant.

Additionally, new analyses based on the pooling of data from Discovery's two Phase 3 trials, SELECT and STAR (the latter was previously presented at the 2003 Hot Topics Meeting), support a significant survival advantage for premature babies treated with Surfaxin, as compared with the animal-derived comparator surfactant therapies (Survanta and Curosurf) used in these studies. Surfaxin is a precision-engineered, peptide-containing, synthetic surfactant that is designed to closely mimic the function of natural human lung surfactant. Surfaxin represents a potential alternative for the animal-derived and the non-protein containing synthetic surfactants.

"The data from the pivotal study, and especially those from the pooled analysis are particularly important because they suggest that a new-generation surfactant therapy such as Surfaxin may save more babies' lives while improving their chances for a healthy future," said Fernando Moya, MD, Chair of the SELECT study Steering Committee and Richard W. Mithoff Professor of Neonatal-Perinatal Medicine, Department of Paediatrics UT-Houston School of Medicine. "Premature infants are very high risk patients. Any additional benefits that we can achieve in increasing their odds for survival and reducing some of the long-term complications associated with prematurity such as BPD will be embraced by the medical community."

Nearly all premature infants born before 32 weeks gestation have not fully developed their natural lung surfactant, and are likely to be at risk for developing RDS, a life-threatening and costly breathing disorder. According to the American Lung Association, RDS strikes over 60 per cent of babies born at less than 28 weeks' gestation and up to 30 per cent of those born at 28 to 34 weeks gestation.

BPD is a costly syndrome that is associated with the prolonged use of mechanical ventilation and oxygen supplementation. Babies with BPD suffer from abnormal lung development and typically have a need for respiratory assistance - oftentimes, for many months, as well as comprehensive care spanning years. According to the 1998 Division of Lung Disease and Office of Prevention Education and Control, the overall cost of treating infants with BPD in the United States is approximately $2.4 billion. There are estimated to be between 10,000 to 25,000 babies that suffer from BPD per year in the United States alone, with the treatment of each patient costing up to $250,000.

"Any surfactant that can demonstrate a statistical benefit in reducing BPD compared to existing therapies would be meaningful to the medical community," said Jay Greenspan, M.D., Professor & Vice Chairman of Paediatrics, Thomas Jefferson University, Philadelphia. "Chronic lung disease poses a serious threat for a growing number of premature infants around the world, and we are eager for an effective therapy that will help address this unmet need."

As previously reported, Discovery's pivotal, multinational study, known as SELECT, demonstrated that Surfaxin, as compared with the non-protein synthetic surfactant, Exosurf, significantly (p=0.002) reduced the incidence of RDS at 24 hours and RDS associated mortality through the first 14 days of life (4.7 per cent versus 9.6 per cent respectively, p=0.001). Surfaxin also significantly (p=0.001) reduced RDS associated mortality compared with the animal-derived surfactant, Survanta (the active, protein-containing reference surfactant for the trial). Additionally, Surfaxin, significantly improved survival without the development of BPD, when compared with Exosurf (Moya et al. Pediatr Res. 2004; 55:466A).

Surfactants are substances that are produced naturally in the lungs and are essential to the lungs' ability to absorb oxygen and to maintain proper airflow through the respiratory system. Premature babies are born with a lack of natural surfactant in their lungs. Without surfactant, the air sacs in the lungs collapse and are unable to absorb sufficient oxygen resulting in RDS. The current standard of care for treating these patients is surfactant replacement therapy using animal-derived surfactants. Animal-derived products are prepared using a chemical extraction process from cow and pig lung washes or from the mincing of these animal lungs.

Discovery's Surfaxin is an engineered version of natural human lung surfactant and contains a peptide, sinapultide, which is designed to closely mimic the essential human lung surfactant protein B (SP-B). Surfaxin is capable of being produced in virtually unlimited quantities, in consistent pharmaceutical grade quality, and has no risk of potential transmission of animal-associated diseases.

Discovery has filed a New Drug Application with the United States FDA and a Marketing Authorization Application with the European Medicines Evaluation Agency for clearance to market Surfaxin, the Company's lead product, for the prevention and treatment of RDS in premature infants.