Net net probably good for NTII's viper-based product - might increase risk a bit, but also means they won't be so behind from a timing perspective:
Safety concerns halt vampire bat stroke trial
Wed Oct 25, 2006 1:34 PM ET
(Corrects to change word in 12th paragraph to news from day) (Adds analyst comments, byline)
By Julie Steenhuysen
CHICAGO, Oct 25 (Reuters) - An experimental stroke treatment designed to copy a protein found in vampire bat saliva has been put on hold because of potential safety problems, its developers said on Wednesday.
Forest Laboratories Inc.<FRX.N> and its German development partner Paion AG <PA8G.DE> said they stopped enrolling patients in a late-stage study of the compound desmoteplase as a treatment for stroke until further data have been analyzed.
The news marks the second setback for Forest this week, after U.S. regulators rejected its application for a new antibiotic on Monday.
An independent panel had requested more data in order to evaluate a potential safety signal, but it did not specify what safety signal it had identified.
After the news broke, Goldman Sachs cut its rating on Forest to "sell" from "neutral" on Wednesday, adding to a sell-off of Forest shares, which tumbled $1.59, or 3.22 percent, to $47.83 on the New York Stock Exchange.
Analysts worried about how Forest would replace sales from its two key drugs, antidepressant Lexapro and Alzheimer's treatment Namenda. The drugs, which now represent 85 percent of sales, face patent expiration in 2011 and 2012.
"Today's news means that Forest will have to look more closely at acquisitions for growth; we expect in the near term that the pipeline gap overhang will continue to weigh down on the shares," said Morgan Stanley analyst Jami Rubin in a note to clients.
The compound desmoteplase is a genetically engineered version of a clot-dissolving protein found in the saliva of the vampire bat Desmodus rotundus.
The compound aims to capitalize on the bat saliva's ability to prevent the blood of its prey from clotting, keeping blood flowing as it feeds. Researchers hope to use that capability to break up clots in the brain that are blocking blood flow, resulting in what is known as an ischemic stroke.
The independent panel said it was too early to draw conclusions about the safety or effectiveness of the compound.
The news also hit investors in German biotechnology company Paion, sending shares down more than 22 percent.
Before the news was announced, Banc of America Securities analyst David Maris expected the late-stage study to be fully enrolled by the end of 2006, with a market launch in fiscal 2009.
The treatment has been successfully tested in two independent mid-stage studies for the treatment of stroke between three and nine hours after symptoms arise. |
