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

To: Anthony Wong who wrote (6207)	11/4/1998 10:00:00 PM
From: Anthony Wong	Read Replies (2) \| Respond to of 9523

11/04 13:02 FOCUS-Drug firms in pact to end insulin injections (Adds analyst comment, more detail and share prices) By Matt Karnitschnig FRANKFURT, Nov 4 (Reuters) - Two drug companies said on Wednesday they will cooperate on a new form of insulin that could revolutionize treatment of diabetes by delivering the hormone through inhalers instead of injections. Germany's Hoechst Marion Roussel (HMR), the pharmaceuticals unit of Hoechst AG <HOEG.F>, and U.S. drug giant Pfizer Inc <PFE.N> said they would develop and market inhaled insulin, a product that would spare millions of diabetics injections and give the technology's owner a major advantage in the growing $2 billion insulin market. Analysts said the new partners will have to move fast to outmaneouvre Novo Nordisk <NVO.N> of Denmark and Eli Lilly and Co <LLY.N> of the United States, the world's number one and two insulin providers respectively, which are developing similar products. "The holy grail is to avoid injection," said Franc Gregori, an analyst at Banque Nationale de Paris in London. "It's difficult to say who's ahead, but we would argue that Pfizer and HMR have a slight edge." The alliance combines HMR's insulin expertise with Pfizer's marketing skills and the resources of its U.S. partner Inhale Therapeutic Systems. A spokeswoman for HMR said the companies hoped to bring the product to market by the third quarter of 2001 but declined to give a sales forecast. The World Health Organisation estimates that the number of diabetics will double from the current 142 million by 2025, but some analysts say that could happen as soon as 2015. Of the new cases, analysts estimate that between 85 and 90 percent will involve diabetes types that could be treated with an inhaler. Only the most serious form of diabetes, known as type one, will still require injections. But if the present efforts to develop inhaled insulin are effective, analysts said its only a matter of time before type one patients can use the new method as well. Currently the more mild diabetes cases, those targeted by the HMR-Pfizer technology, can be treated through changes in a patient's diet or insulin tablets. While the tablets work for many patients, its difficult to completely control the disease with them. That might prove a disadvantage for inhaled insulin as well because its potency is only one-fourth of that used in syringes. Analysts said what could make the inhaled insulin market particularly lucrative, however, is the inhaler delivery system. "Insulin isn't that expensive. The device is where the value is added," said BNP's Gregori. The HMR-Pfizer product is currently in Phase II trials and will enter the final stage, Phase III, by the beginning of next year. The treatment will undergo five separate studies that will involve more than 1,000 patients. HMR, the world's third-largest insulin maker, will provide production facilities in Frankfurt until construction of a new plant, which the firms say will be the biggest of its type, is completed. The companies did not disclose their respective investment in the project, which is subjected to regulatory approval. Analysts said the costs of the new Frankfurt-based plant will probably be in the three-digit million mark range. Though Wednesday's pact was hailed by analysts as a positive step for Hoechst in its ongoing transformation into a lifes sciences group, or one that concentrates on drugs and agrochemicals, analysts said it did not represent a major breakthrough. "This is a small piece of the jigsaw," said Penny Tattersal, an analyst at Credit Suisse First Boston in London. "I don't see it as the thing that transforms Hoechst from a troubled pharmaceuticals company into a star." Hoechst shares closed Frankfurt trade up more than two percent at 72.40 marks. Pfizer shares were down 1-1/8 at 107-7/8 in afternoon New York trade. moneynet.com@NEWS-P2&Index=1&HeadlineURL=../News/NewsHeadlines.asp&DISABLE_FORM=&NAVSVC=News\Company