Zonagen Stock Continues Decline On Concerns About Impotence Drug
June 04, 1998 11:20 AM
NEW YORK -(Dow Jones)- Shares of Zonagen Inc.
continued to fall Thursday after trial results presented at
a medical conference earlier this week cast doubt on its
lead product's ability to compete with Pfizer Inc.'s
blockbuster impotence pill, Viagra.
Zonagen shares (ZONA), which fell 15% Wednesday,
were down $4.50, or 14.4%, at $26.75 on Nasdaq
volume of 694,900 shares in late-morning trading.
Average daily volume is 380,000 shares.
The test results revealed Tuesday at the American
Urological Association meeting in San Diego showed
that while Zonagen's impotence pill Vasomax works and
is safe, it was less effective than Viagra. Researchers
noted, however, that the two drugs haven't been directly
compared in studies.
Scientists presented results showing that 37% to 45% of
about 300 patients taking Vasomax got better erections
than without the drug. Pfizer's (PFE) Viagra, by
contrast, helps about 70% of impotent men. Moreover,
some doctors worry that Vasomax could lower blood
pressure and cause cardiovascular side effects, although
this wasn't seen in the trial.
In the past, Zonagen's clinical trials have been
controversial. Several short sellers have attacked the
company's testing as flawed.
Zonagen, of the Woodlands, Texas, is collaborating with
pharmaceutical giant Schering-Plough Corp. (SGP) to
develop the drug and is expected to file for government
marketing approval this month. The drug was approved
for use in Mexico last week.
-By Jennifer Fron Mauer; 201-938-5287;
jennifer-fron.mauer@cor.dowjones.com
Copyright (c) 1998 Dow Jones & Company, Inc.
All Rights Reserved.
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