Larry, Here's another Reuter's report on yesterday's action:
LOS ANGELES, Sept 29 (Reuter) - Shares of Agouron Pharmaceuticals Inc fell
sharply Monday as one analyst downgraded the stock amid new research
suggesting the benefits of Agouron's AIDS drug may be limited.
But several AIDS experts and industry analysts were debating the conclusions
to be drawn from the new research, and some said they saw nothing to suggest
the outlook for Agouron was weakening.
Agouron shares were down 4-5/16 to 46-1/2.
Agouron makes Viracept, one of several protease inhibitor drugs that have
become widely used in the most aggressive AIDS treatments. Used in
combination with other drugs, protease inhibitors have helped drive down the
HIV virus to nondetectable levels in thousands of patients.
But research presented Monday at a medical conference in Toronto said this
regimen does not work as often is is commonly believed. One study showed that
more than half of all patients failed the treatment in "real world"
conditions. Prior clinical studies had suggested a failure rate of only 10 to
20 percent.
Montgomery Securities analyst David Crosson attended the conference in
Toronto and downgraded Agouron to a hold from a buy. Crosson cited concerns
that superior new drug treatments may emerge as competitive threats to
protease inhibitors.
Unlike most other drug companies that make protease inhibitors, Agouron makes
only one drug and is solely dependent on Viracept for its revenue.
Agouron's stock price has surged on the early success of Viracept, but
Crosson noted its exclusive focus on this drug also makes it more vulnerable
to competition from new AIDS treatments.
An Agouron spokeswoman, however, vigorously objected to suggestions that any
negative news had emerged from the conference. "Absolutely and positively
not," she said. "Our sales will speak for themselves. The data coming out of
the conference has been positive for our drug."
Jim McCamant, editor of the Medical Technology Stock Letter concurred. He
said new data Agouron released on the safety and effectiveness of Viracept
was "absolutely as positve as it could be."
"Viracept is on its way to getting equal market share with Crixivan," the
protease inhibitor made by Merck and Co Inc <MRK.N>, which now is the market
leader.
Merck currently has 44 percent of the AIDS protease inhibitor market,
compared with Agouron's 26 percent. But McCamant said Agouron's drug was
emerging as a favorite for its easier dosing schedule and less severe side
effects.
He added that the outlook "looks great" for all protease inhibitors, since
the overall market still has room to grow.
Around 40 percent of all AIDS patients still are not using protease
inhibitors. -Andrea Orr 213 380-2014.
16:32 09-29-97 |
