With the lead drug in its HIV program beginning a Phase III trial, Samaritan Pharmaceuticals Inc. is taking action to build up its cancer pipeline by gaining rights to an anti-metastatic compound developed by Metastatin Pharmaceuticals Inc.

Las Vegas-based Samaritan signed a letter of intent to acquire all of the outstanding shares of Metastatin, though specific terms of the deal have yet to be finalized.

"Everyone at Metastatin is very excited about the possibility of this acquisition," said Don McGuire, CEO of the Bethesda, Md.-based firm, calling Samaritan "a great fit."

Metastatin was founded in 1994 by Steven Patierno and Michael Manyak based on their discoveries at the George Washington University Cancer Center. Like its name suggests, the privately held company is developing drugs designed to inhibit tumor progression and metastases.

Its lead drug candidate, recombinant uteroglobin (rUG), is completing preclinical studies as a replacement therapy in epithelial cell cancers. The product is a recombinant form of human uteroglobin, a naturally occurring peptide responsible for inhibiting cell growth, invasiveness and angiogenesis. Though produced in normal tissue, uteroglobin is noticeably absent in the tumor cells of several cancers, including lung, colorectal, prostate and uterine.

Metastatin's rUG product, which is intended to be administered with other cancer treatments, aims to replace the naturally occurring peptide, and early studies have suggested a significant reduction in tumor cell growth and metastases.

"We're happy that Samaritan will be dedicated to the development of [rUG]," McGuire told BioWorld Today.

That product would add to Samaritan's broad drug development pipeline, which includes ongoing work in the areas of HIV, Alzheimer's disease, cancer and cardiovascular disease. Most of those programs are in early stage research, though the company does have one product, oral HIV entry inhibitor SP-01A, in late-stage trials.

Last month, Samaritan's European subsidiary initiated a Phase III trial to assess the drug's effect on viral load in 400 treatment-experienced, HIV-positive patients. The trial is expected to run for 48 weeks, with the primary endpoint being the change in HIV RNA viral load (log10) after week 24.

In Alzheimer's, the company is in preclinical development with SP-233, a drug aimed at protecting neurons against beta-amyloid toxicity. Samaritan also is getting ready to start preclinical work on its two stem cell-based therapies, SP-sc4 and SP-sc7, in Alzheimer's.

Samaritan reported a net loss of $1.2 million, or 1 cent per share, for the first quarter of 2006. It had cash and cash equivalents totaling $2.5 million as of March 31. Samaritan's stock (AMEX:LIV) lost 1 cent Thursday to close at 39 cents.