More likely this...
Sepracor says drug quickly boosts lung function
Wed May 24, 2006 6:35 PM ET
LOS ANGELES, May 24 (Reuters) - Sepracor Inc. (SEPR.O: Quote, Profile, Research) on Wednesday said its experimental drug for smoker's cough proved as effective in a late-stage clinical trial as GlaxoSmithKline Plc's (GSK.L: Quote, Profile, Research) long-acting bronchodilator medicine Serevent, but took effect far more quickly.
The Phase III trial of Sepracor's medicine, arformoterol, which is awaiting U.S. approval, involved 717 patients with the ailment -- formally known as chronic obstructive pulmonary disease (COPD). Symptoms include chronic bronchitis and emphysema.
After 12 weeks of treatment using three different doses, 77 percent to 88 percent of patients on the Sepracor drug achieved more than 10 percent improvement in lung function, compared with 58 percent of patients on the Glaxo drug and 48 percent given a placebo, Sepracor said.
The study found it took patients on alformoterol from 4 to 14 minutes to achieve the 10 percent improvement, compared with more than 132 minutes for Serevent patients.
Sepracor shares, which rose 2.8 percent to close at $50.04 on Nasdaq, were up 1.5 percent at $50.79 in after hours trading.
"Many patients with COPD already use nebulizers for their respiratory medications ... I expect that these patients would benefit from having the option of a nebulized long-acting bronchodilator for the treatment of their COPD," Dr. James Donohue, study investigator and chief of pulmonary diseases and critical care at the University of North Carolina medical school in Chapel Hill, said in a statement.
The FDA earlier this month said product labels for Serevent and another Glaxo asthma product Advair had been updated to state they increase the chance of severe asthma attacks that could result in death. The same warning was placed on the label of Foradil from Novartis AG (NOVN.VX: Quote, Profile, Research).
The agency is slated to decide on Sepracor's application for arformoterol by mid-October.
Calls on the company caught the attention of many options investors on Wednesday, with a total of 67,301 calls and 10,937 puts changing hands in Sepracor in the U.S. options market, surpassing the 70,000 contracts traded on May 16, according to market research firm Track Data.
The heavy options activity in the Sepracor June and July calls suggest more volatility to the upside.
"This is being attributed to rumors that Pfizer Inc. (PFE.N: Quote, Profile, Research) could make a bid for the company," said William Lefkowitz, options strategist at brokerage firm vFinance Investments.
Officials at Sepracor were not immediately available for comment.
Paul Foster, strategist at financial-information Web site theflyonthewall.com, also attributed the explosion in Sepracor call volume and implied volatility to speculation Pfizer or other large pharmaceutical companies are interested in the company.
Sepracor options implied volatility stood at 70 percent, above its 26 week average of 39 percent.
"Excessive option volume on exploding implied volatility indicates speculation of a higher Sepracor share price," Foster said. (Additional reporting by Doris Frankel in Chicago)>>>
If this is real, no one should be surprised about leaks. Sure would be funny if it were pfe. |
