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Biotech / Medical : Pharma News Only (pfe,mrk,wla, sgp, ahp, bmy, lly) -- Ignore unavailable to you. Want to Upgrade?

To: Henry Niman who wrote (897)	10/13/1998 12:37:00 PM
From: Anthony Wong	Respond to of 1722

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

To: Henry Niman who wrote (897)	10/13/1998 12:44:00 PM
From: Anthony Wong	Respond to of 1722

SmithKline Shares Rise After American Home-Monsanto Talks End Bloomberg News October 13, 1998, 12:13 a.m. ET SmithKline Shares Rise After American Home-Monsanto Talks End London, Oct. 13 (Bloomberg) -- SmithKline Beecham Plc shares rose in London after U.S. rivals American Home Products Corp. and Monsanto Co. called off merger talks. The rise was prompted by speculation that London-based drugmaker SmithKline could reopen merger talks with American Home that ended in January. SmithKline shares closed up 24 pence, or 3.9 percent, at 640p. In New York, the company's American depositary receipts were recently up 2 at 53 7/8. Analysts said it's highly unlikely SmithKline will again seek a merger with Madison, New Jersey-based American Home after talks failed earlier this year on worries over American Home's legal liabilities, management roles and other issues. Amid continuing speculation of consolidation in the industry to cut costs, SmithKline began merger talks in February with Glaxo Wellcome Plc; these also failed three weeks later. Kevin Scotcher, an analyst with BT Alex. Brown in London, called SmithKline's share jump ''a gut reaction of the market,'' which didn't reflect any likelihood that SmithKline and American Home may reopen talks. After both sets of talks failed, SmithKline has maintained it has a bright future as an independent company. ''SmithKline would have to turn on a sixpence yet again to do a deal with American Home,'' said Scotcher. ''Anything is possible but not likely.'' Lionel Wilson, an analyst with Townsley & Co., a London brokerage, said a revival of the SmithKline-American Home talks was out of the question. SmithKline, he said, has repeatedly told shareholders it won't reopen talks with American Home. ''The market is reacting incorrectly on SmithKline,'' said Wilson. ''SmithKline told shareholders it would not be getting back into bed with American Home and shareholders would not accept it if they did.'' Meanwhile, some U.S. investors said they'd expected American Home and Monsanto to fail at their $35 billion merger, saying American Home could find a better partner. Robert Chapman, chief executive of Los Angeles-based Chapman Capital LLC, an arbitrage firm, said he sold American Home shares short -- betting on a decline -- because he didn't think the companies would merge. ''This was one of the worst mergers I have ever seen,'' said Chapman. ''American Home was buying an overvalued, decelerating business which is imploding because of its seed business. They should get a closer look at their partners before asking them to dance.'' American Home shares fell 3 7/8 to 46 1/8. Monsanto shares fell 12 1/8 to 38 1/4. --Dane Hamilton in the London newsroom (44-171) 330-7727/ph