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Biotech / Medical : PFE (Pfizer) How high will it go? -- Ignore unavailable to you. Want to Upgrade?

To: BigKNY3 who wrote (5119)	8/24/1998 8:00:00 AM
From: Anthony Wong	Respond to of 9523

More about the obesity drug: 08/24 06:40 FOCUS-Phytopharm<PYM.L>blooms on Pfizer<PFE.N> deal By Jonathan Birt LONDON, Aug 24 (Reuters) - One of Britain's smallest drug research companies Phytopharm Plc was given a major lift on Monday after U.S. giant Pfizer Inc signed a deal to develop an obesity treatment based on a South African plant. Shares in Phytopharm, which have risen sharply in recent weeks on speculation about a deal, were up 5.6 percent at 122 1/2 in midmorning trading after a high of 138, and have jumped by 50 percent since the start of the month. The backing of Pfizer -- best-known for impotence treatment Viagra and the sixth biggest company in the world in sales terms last year -- is a major coup for Phytopharm, which has often been mocked for its plant-based approach to drug discovery. "I think this is a milestone. If you think of a partner, this is no diddlysquat (insignificant) pharmaceutical company, this is Pfizer -- it will make people sit up and think Phytopharm is talking to multinationals," Chief Executive Richard Dixey told Reuters. Phytopharm's obesity drug is derived from an African plant and acquired from South Africa's Council for Scientific and Industrial Research, which will receive undisclosed payments depending on the drug's progress. Although it has not been tested in humans, analysts said there is strong anecdotal evidence of its effectiveness as an appetite suppressant, as well as powerful animal data. Perhaps most importantly,the product appears to have few side effects -- a major advantage in a market which has seen a number of drugs withdrawn in recent months because of health scares. Obesity is becoming a major target for drug companies. The U.S. market alone is already thought be worth around $3 billion a year, with up to 65 million Americans estimated to be obese. "Everyone wants to have an anti-obesity product because basically there is nothing effective out there, and bthe market potential probably dwarfs Viagra/b -- that is not an exaggeration," one analyst said. Pfizer will contribute $7 million towards an early development programme for P57, and Phytopharm said it could receive up to $32 million in licence fees and milestone payments, triggered after set development goals are achieved. The Pfizer deal has raised hopes of other major partnerships -- in addition to P57, Phytopharm is working on plant-based medicines for areas including arthritis, male pattern baldness and Alzheimer's disease. Dixey told Reuters Pfizer was interested in other products, and Phytopharm is in talks with other companies of similar calibre to the U.S. giant. "Pfizer is the right partner, it validates Phytopharm and as far as other negotiations (are concerned) it should provide a shot in the arm for those," he said. Phytopharm broke new ground last year after its eczema treatment Zemaphyte, derived from ten Chinese medicinal plants, received Investigational New Drug status from U.S. regulators -- the first botanical drug to do so. The company believes Pfizer's clout with regulators will help advance the case for botanicals, which have been treated with some suspicion by authorities used to dealing with chemical-based treatments. moneynet.com@NEWS-P1&Index=0&HeadlineURL=../News/NewsHeadlines.asp&DISABLE_FORM=