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

To: Ron Flanigan who wrote (5933)	10/13/1998 12:36:00 PM
From: Anthony Wong	Read Replies (1) \| Respond to of 9523

Phytopharm Starts Tests of Obesity Drug With Pfizer (Update1) Bloomberg News October 13, 1998, 8:42 a.m. ET Phytopharm Starts Tests of Obesity Drug With Pfizer (Update1) (Rewrites, adds analyst comment in 4th paragraph) London, Oct. 13 (Bloomberg) -- Phytopharm Plc, one of the smallest U.K. drug-development companies, said it began human testing of a new kind of obesity treatment with its partner Pfizer Inc., moving a step closer to competing in a growing, $3 billion market for treating the condition. Phytopharm's P57 drug was derived from a South African plant and represents a potential new method for treating obesity, a which now affects some 38 million Americans and is viewed as a major, but challenging, market for drug companies. While P57 is still years from the market, it has the potential to compete with other new drugs, including BASF AG's Meridia and Roche Holding AG's Xenical, two of the newest obesity treatments. Phytopharm said Aug. 24 that Pfizer, the world's sixth-largest drugmaker, will contribute at least $7 million to test P57, which is part of a new class of plant-based medicines called ''botanicals.'' ''The Pfizer deal crystallized in people's minds the approvability of these kinds of products,'' said Stephen Ewing, an analyst at Phytopharm's broker Panmure Gordon & Co. He said U.S. Food and Drug Administration hasn't yet approved any botanicals for prescription use. Phytopharm shares rose 5 pence to 115p. Its shares surged 11 percent to a 52-week high of 144.5 pence on Aug. 24 when it announced the agreement with Pfizer. Money flow analysis -- comparing the value of trades done at higher and lower prices than the previous trade -- shows that more than 40 million pounds ($68 million) flowed out of the stock in the week after the agreement was announced, even as the price rose. Profit Hopes Godmanchester, England-based Phytopharm, which raised 11.9 million pounds in an initial public offering in April 1996, is one of a number of currently unprofitable U.K. biotechnology companies that hope to win big when their products hit the market.<P>The obesity drug is one of three Phytopharm now has in clinical trials. It is also testing a hair-loss treatment called P45, moving to compete in a growing market dominated by Pharmacia & Upjohn Co.'s Rogaine and Merck & Co.'s Propecia. And it is also testing a drug called Zemaphyte for eczema, its lead drug in development. Phytopharm joins a number of companies in finding new drugs based on age-old herbal remedies and traditional plant treatments. Others include Shaman Pharmaceuticals Inc., PharmaPrint Inc., Pharmacopeia Inc., all of the U.S., and Phytera Symbion Aps of Copenhagen. Phytopharm said it will test P57 on healthy volunteers to evaluate its safety. If successful, it will moved into the next stage of a clinical trial program on a larger number of people, evaluating both safety and efficacy. It did not name the South African plant from which the product is derived. Last year, American Home Products Corp. and Interneuron Pharmaceuticals Inc. were forced to withdraw obesity drug Redux for safety reasons, eliminating some potential competition to P57. ''We are pleased that P57 has progressed into the clinical phase on schedule,'' said Richard Dixey, Phytopharm's chief executive. -Dane Hamilton in the London newsroom (44-171) 330-7727