FWIW, local, largely derivative, coverage in the Ann Arbor News:
Arterial drug study promising
Test appears to show Esperion compound erodes cholesterol plaque at faster pace
Friday, June 27, 2003
BY SCOTT ANDERSON
News Business Reporter
Stock in Esperion Therapeutics Inc. soared Thursday after the Ann Arbor biotechnology firm released what some saw as a landmark study in the battle against a common heart disease that affects 60 million Americans.
In a clinical study of 47 people with coronary disease, a drug that Esperion is developing showed promise in eroding harmful plaque that can build up in the coronary arteries - an ailment known as atherosclerosis that can lead to heart attacks and strokes.
Esperion has been investigating ways to boost HDL - the so-called "good cholesterol" - to soak up and flush out more harmful cholesterol. The recent study seems to confirm Esperion's earlier research.
"The plaque can be changed ... and it can be changed very quickly as opposed to taking months or years to have it change," said Esperion CEO Roger Newton.
Conducted with the Cleveland Clinic Foundation, the study is only one in a series of necessary tests for a drug that could be years away from being available to consumers, if at all. But the results nonetheless drew praise from analysts.
Unlike drug treatments like Zocor and Lipitor, which Newton helped develop at the former Parke-Davis research facility in Ann Arbor that's now owned by Pfizer Inc., the Esperion drug seems to show success in weeks, said Mark Monane, biotechnology research analyst with Needham & Co. in New York.
"It's a powerful result in a large area of unmet need," said Monane, whose investment banking firm does not own stock in Esperion.
The announcements, made just before trading began, swelled Esperion stock 19 percent to $17.61 a share on volume of 8.3 million shares - 30 times the average trading volume for the stock.
Investment bank U.S. Bancorp Piper Jaffray on Thursday upgraded its evaluation of Esperion stock from "market perform," or keeping pace with the market, to "outperform," or exceeding market expectations.
Esperion acquired rights to the drug compound, known as ETC-216, from Pharmacia Corp. in June of 1998. While Esperion may further develop and market the drug in North America, Pfizer - which now owns Pharmacia - may develop and market the drug elsewhere around the world, under the current contract.
Esperion managers declined to answer several specific questions about the study, saying the trial awaits scientific publication and peer review later this year. But they described the test results as a landmark move for the company.
"This is the first time something like this has been done in my experience," said Dr. Adeoye Olukotun, Esperion's chief medical officer. "To have this kind of impact in this short period of time, this was surprising to me."
The 5-year-old company, which employs 68 staffers, has not yet released a drug to the public and does not generate any revenues from sales. At the end of its second quarter, the company reported $38 million in cash and short-term investments. It also posted a $7.4 million net loss for the three-month period.
Scott Anderson can be reached at sanderson@annarbornews.com or at (734) 994-6843.
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