drug

Huffington Post…

Do you have fireproof shoes? If you work in the pharmaceuticals industry these days, you’ve probably thought about buying a pair. Rarely has there been a time when so many legal, demographic and scientific changes have occurred at once. Taken as a whole, they constitute a burning platform that the industry cannot stand on much longer. Take prescription drugs. Between now and 2016, nearly a dozen top-selling, brand-name pharmaceuticals will lose their patent protection, meaning other drug makers will be able to sell generic equivalents of Lipitor, Plavix, Zyprexa and other products at greatly reduced prices. According to a report from EvaluatePharma, more than $267 billion worth of sales are at risk for drug makers Pfizer, Eli Lilly, Merck and others. Talk about an impetus for change. Throw in healthcare reform, increased regulation and other factors and you can understand why the pharmaceutical industry is feeling the heat all around it. So why aren’t the nation’s largest drug distributors sweating bullets? The answer has a lot to do with the management of these organizations, and the dual ways they react to business challenges and opportunities, in particular. McKesson , Cardinal Health and AmerisourceBergen are three of the nation’s largest drug distributors and each is enjoying a strong year despite the upheaval. How? By successfully navigating the ups and downs of their industry through a coordinated series of efforts to optimize and reinvent their businesses simultaneously. Doing both is extremely difficult, especially for companies that have market share, a revenue stream or a business model to defend. Companies tend to do whatever it takes to preserve these — often through a series of process and product refinements. While vitally important for improving efficiencies and correcting mistakes, optimization exercises can consume a company and prevent it from recognizing moments that call for greater transformation. Despite the discomforts, an organization must step outside its comfort zone every now and then. This is precisely what the Big Three in drug distribution have done and why they are prevailing in the market and on Wall Street. Shares of all three companies trade near or at their 52-week high. And each has posted recent quarterly earnings that have exceeded expectations. How? By simultaneously fine-tuning and transforming. Take Cardinal , the United States’ 19th-largest industrial company, according to Fortune Magazine . Last year, the company racked up $98.5 billion in sales of drugs and related products and services. Not bad for a company that started off in another industry altogether — food distribution. For nearly a decade in the 1970s, the company focused on the low-margin food distribution business before entering the pharmaceutical business through an acquisition. Since then, the company has acquired scores of companies, broadening its product portfolio and expanding its geographic reach. In the past two years, the company made two moves that will reshape it significantly. The first was the 2009 spin-off of the CareFusion medical technologies business, which has allowed Cardinal to focus on its supply chain operations. The second was the 2010 purchase of Zuellig Pharma China, the largest pharmaceutical importer in the world’s fastest-growing drug market. During its various reinventions, Cardinal has continually optimized its operations with a series of process and technology improvements that have made the company one of the most inventive, responsive and competitive drug distributors today. Ditto for AmerisourceBergen. Like Cardinal, AmerisourceBergen has grown through a series of acquisitions that have transformed the company from a sleepy Valley Forge, Pa., wholesaler into an industry powerhouse. Last year, AmerisourceBergen racked up nearly $78 billion in sales, which put it No. 27 on the Fortune 500 . To bolster profitability, AmerisourceBergn has invested heavily in “specialty drugs.” These advanced medications for treating chronic or rare conditions such as cancer or multiple sclerosis require more sophistication to sell and more expertise to administer. Like McKesson and Cardinal, AmerisourceBergen expanded its capabilities through new training and education. It’s also developed new business models that differ significantly from its traditional, branded-products business. As a result, the company has been able to move from the industry’s burning platform in a bold way. And changes continue. Later this year, company president and COO Steve Collis will replace current CEO R. David Yost when he retires in July. A longtime company veteran, Collis has already made significant changes in an effort to streamline decision making and better coordinate product development. Among other things, he’s consolidated the company’s reporting structure and eliminated many of the silos that separated different business functions. So are the big drug distribution companies done reinventing? Hardly. The passage of the Patient Protection and Affordable Care Act of 2010 is major catalyst in the drug distribution business, one that will usher in even more change. “With 1,083 pages of legislation in the final bill to interpret and implement, this legislation marks the beginning of the reform process, not the end,” says Cardinal chairman and CEO George Barrett. His response? Bring it on. Like his peers in the drug distribution business, he’s not afraid of a little reinvention now and then. Along with ongoing optimization, it makes life more interesting, not to mention more rewarding. Inder Sidhu is the Senior Vice President of Strategy & Planning for Worldwide Operations at Cisco , and the author of Doing Both: Capturing Today’s Profits and Driving Tomorrow’s Growth . Author proceeds from sales of Doing Both go to charity. Follow Inder on Twitter at @indersidhu .

Excerpt from:
Inder Sidhu: Pharma’s Surefire Formula: Simultaneous Optimization and Reinvention

Find our Weekly Commercial Real Estate, Private Equity and Fund Newsletters at www.WeeklyBrief.net

NEW YORK — Pfizer Inc. said Friday it is pulling its blood pressure drug Thelin off the market and stopping all clinical trials because the drug can cause fatal liver damage. Thelin is sold in the European Union, Canada, and Australia as an oral treatment for severe pulmonary arterial hypertension, or high blood pressure in the pulmonary artery. Pfizer said a review of data from clinical trials and post-marketing reports showed a new link to liver injury. It also consulted with experts about the link between Thelin and the deaths of two patients. Liver damage was a known side effect of Thelin and similar drugs, the company said. Pfizer said the withdrawal was voluntary and added that it has withdrawn its filing for marketing approval in the U.S. Since there are other treatment options, Pfizer said the benefits of Thelin don’t outweigh the risks. It is stopping all studies of the oral drug, which Pfizer acquired in 2008 when it bought Encysive Pharmaceuticals Inc. Encysive had been trying to win marketing approval for Thelin since 2005, but the Food and Drug Administration said it was not effective enough. Other agencies only approved the drug for hypertension that was so debilitating that patients’ physical activity was severely limited. The chemical name of Thelin is sitaxsentan. In premarket trading, shares of Pfizer shed 9 cents to $16.67 from Thursday’s close of $16.76.

See original here:
Pfizer Withdraws Blood Pressure Drug Over Fatal Liver Damage

Novartis posts a rise in 3Q earnings on higher drug sales 

October 21, 2010

Novartis posts a rise in 3Q earnings on higher drug sales

Read the full article →

Allergan Botox Settlement Totals $600 Million

September 1, 2010

Allergan, the maker of Botox, agreed on Wednesday to pay $600 million to settle charges that it illegally promoted and sold the drug through 2005 for unapproved uses like treating headaches.

Read the full article →

5-Day Emergency Contraceptive ‘Ella’ Approved By FDA

August 13, 2010

WASHINGTON (AP) — Federal health officials on Friday approved a new type of morning-after contraceptive that works longer than the current leading drug on the market. The pill ella from HRA Pharma reduces the chance of pregnancy up to five days after sex. Plan B, the most widely used emergency contraceptive pill, begins losing its ability to prevent pregnancy within three days of sex. The Food and Drug Administration approved the drug Friday as a prescription-only birth control option. The ruling clears the way for U.S. sales of the drug, which is already approved in Europe. Morristown, N.J.-based Watson Pharmaceuticals will market the drug in the U.S. under an agreement with HRA. Watson said it will launch the pill in the fourth quarter. Studies of ella by its manufacturer showed the drug prevented pregnancies longer and more consistently than Plan B. In a head-to-head trial between the two drugs, women who took ella had a 1.8 percent chance of becoming pregnant, while women who took Plan B had a 2.6 percent chance. Experts tracked nearly 1,700 women who randomly received one of the two pills within three to five days of having unprotected sex. Plan B is made by Teva Pharmaceuticals and is also marketed in several generic versions. Unlike ella, Plan B and other generic versions are available without a prescription for women 17 years and older. HRA Pharma did not request over-the-counter status for its drug. Ella uses the hormone progesterone to delay ovulation, a key step in the fertilization process. Despite this, the drug has drawn criticism from anti-abortion groups who say it is closer to an abortion pill than an emergency contraception pill. Groups including the Family Research Council argue the drug is chemically similar to the abortion drug mifeprestone, which can be taken to end a pregnancy up to 50 days into the gestation period. That drug has been associated with severe infections and bleeding after abortion. However, FDA reviewers reported no life-threatening medical side effects with ella. The most common side effects with the drug included headache, nausea and abdominal pain, according to an FDA release. Abortion rights groups hailed the approval as an important step for the FDA, which was criticized in 2006 for its handling of Plan B’s approval. Last year a federal judge ruled that the FDA deliberately delayed making a decision on whether to permit over-the-counter sales of Plan B to teenage girls, at the behest of the Bush administration. ”Approval of ella is another indication that the FDA is committed to restoring scientific integrity in its decisions,” said Kirsten Moore, president of the advocacy group Reproductive Health Technologies Project. Privately held HRA Pharma is based in Paris and specializes in women’s health products.

Read the full article →

Video: Thomas Sees Alternatives to Glaxo’s Avandia for Diabetes: Video

July 14, 2010

July 14 (Bloomberg) — Abraham Thomas, a member of a U.S. Food and Drug Administration advisory panel, talks with Bloomberg’s Peter Cook about the panel’s vote today to recommend GlaxoSmithKline Plc be allowed to continue selling its diabetes pill Avandia. Thomas was one of 12 FDA advisers who recommended Avandia be recalled because of heart risks. Seventeen of 32 advisers recommended new warnings or restrictions for Avandia. Three panel members said no changes were needed to the drug’s prescribing information. Thomas speaks on Bloomberg Television’s “Taking Stock.” (Source: Bloomberg)

Read the full article →

Avandia: GlaxoSmithKline Accused Of Covering Up Heart Risks Of Diabetes Pill (VIDEO)

July 13, 2010

GlaxoSmithKlein hid the fact that their drug, Avandia, caused heart risks for 11 years, according to the New York Times . Avandia was once a huge seller for GSK, but its potential ties to heart attacks caused the FDA to do a 700-page review of the drug ahead of a meeting that will decide whether or not it will continue to be sold. The company reportedly knew the risks of the drug as early as 1999, but declined to make their information public for fear of losing millions. WATCH:

Read the full article →

Joseph Casias: Walmart Fired Me For Using Medical Marijuana

June 29, 2010

DETROIT — A man who uses medical marijuana to treat symptoms of an inoperable brain tumor and cancer claims in a lawsuit filed Tuesday he was wrongfully fired from a Walmart store in Michigan after testing positive for the drug. Joseph Casias was fired last year after five years on the job in Battle Creek despite being legally registered with the state to use the drug, according to the lawsuit against the world’s largest retailer in state court. Casias, 30, said he didn’t use marijuana at work or come to work under the influence. Scott Michelman, a staff attorney with the American Civil Liberties Union, said the lawsuit aims to test the extent that Michigan’s law protects employees. “No patient should be forced to choose between adequate pain relief and gainful employment, and no employer should be allowed to intrude upon private medical choices made by employees in consultation with their doctors,” Michelman said. Michigan voters approved medical marijuana use in 2008. Federal law still prohibits the sale and cultivation of the drug. Bentonville, Ark.-based Wal-Mart Stores Inc. said in a statement that it is an “unfortunate situation all around.” It said it is sympathetic to Casias’ condition but said it is an issue of customer and employee safety. “The doctor prescribed treatment was not the relevant issue. The issue is about the ability of our associates to do their jobs safely,” the company said. “As more states allow this treatment, employers are left without any guidelines except the federal standard.” Casias’ drug test was given after he injured his knee at work in November, but the positive result on the urine test only indicated drug use in recent days or weeks, according to the lawsuit in Calhoun County Circuit Court. Casias said the injury had nothing to do with marijuana use; he simply stepped the wrong way. Fourteen states provide protections for patients who use marijuana as recommended by a doctor. While still illegal under federal law, U.S. Attorney General Eric Holder announced last year the Obama administration would relax prosecution guidelines. Some state courts, however, haven’t upheld employee protections. In April, the Oregon Supreme Court ruled that an employer is not required to accommodate the use of medical marijuana, saying state law is trumped by federal law. And in recent years, state supreme courts in Montana and California have ruled that medical marijuana laws don’t protect employees from being fired for using the drug. The ACLU argues, however, said Michigan’s law more explicitly protects employees from being disciplined for legally using medical marijuana. It said that includes Casias’ case, but not those who use the drug at work, for example. Casias’ cancer has been in remission for nine years, but the married father of two’s medical condition interferes with his ability to speak and causes pain. He said the use of medical marijuana, which was recommended by his oncologist after the law took effect, has decreased his pain without nausea that accompanied a previous medication. “For some people, working at Wal-Mart is just a job, but for me, it was a way of life,” Casias, of Battle Creek, said in a statement. “I came to Wal-Mart for a better opportunity for my family and I worked hard and proved myself. I just want the opportunity to continue my work.” The ACLU and its Michigan branch represent Casias along with attorney Daniel W. Grow in the lawsuit against Wal-Mart and a store manager.

Read the full article →

Inexpensive Generic Drug May Save 100,000 Lives Annually After Accidents

June 14, 2010

By Michelle Fay Cortez June 15 (Bloomberg) — A generic drug that costs less than $10 a treatment may save as many as 100,000 lives a year by preventing people from bleeding to death after accidents, researchers said. The medicine, tranexamic acid , is widely used to control bleeding in hemophiliacs, after surgery, and by women who have abnormally heavy menstrual periods. It had never been studied for accident victims, and doctors worried that it may raise the risk of heart attacks, strokes and other complications of clots. The drug, given in two injections to patients suffering from bleeding after accidents, slashed deaths 10 percent compared with placebo, a study published today in the journal Lancet found. The medicine reduced deaths from bleeding 15 percent, without significant adverse effects, according to the research, covering more than 20,000 patients from 40 countries. “It’s probably one of the cheapest ways to save a life there ever was,” said Ian Roberts, the lead researcher, from the London School of Hygiene & Tropical Medicine, at a news conference in London. “The treatment is seriously cheap. It doesn’t get much more effective than this.” The study was funded by the National Institute for Health Research, based in London. Pfizer Inc. , which sells a version under the brand name Cyklokapron , provided the tranexamic acid from its plant in Sandwich, England. Pfizer, the world’s largest pharmaceutical company, is based in New York. The researchers asked the World Health Organization , based in Geneva, to categorize the drug an essential medicine, on a shopping list many countries use to determine which products to purchase, Roberts said. The product costs about 3 pounds ($4.43) a dose, with one given as an immediate injection and the second delivered intravenously over an eight-hour period. In the study, 14.5 percent of patients given tranexamic acid died within four weeks of treatment, compared with 16 percent for placebo. About 4.9 percent given the drug died from bleeding, compared with 5.7 percent for placebo. To contact the reporter on this story: Michelle Fay Cortez in London at mcortez@bloomberg.net

Read the full article →

Novartis Drug Backed by Panel as First Pill to Treat Multiple Sclerosis

June 10, 2010

By Catherine Larkin June 10 (Bloomberg) — Novartis AG won a U.S. panel’s backing to introduce the first pill to treat multiple sclerosis as an alternative to injectable drugs led by Biogen Idec Inc. ’s Avonex and Teva Pharmaceutical Industries Ltd. ’s Copaxone. Novartis’s Gilenia should be “generally recommended” as an initial treatment for MS, not just when other drugs fail, outside advisers to the Food and Drug Administration said in a 21-3 vote today in Silver Spring, Maryland. The panel voted unanimously in favor of the pill’s safety and effectiveness, while saying a lower dose should be tested after approval. The Swiss drugmaker has been in a race with Merck KGaA to sell the first pill to delay progression of MS. The neurological disease affects 2.5 million people worldwide, many of whom have trouble sticking with current therapies because they’re difficult to use or have side effects, according to the National Multiple Sclerosis Society , a New York-based patient group. “This is an enormously effective drug,” said Cynthia Sitcov, the panel’s patient representative. “I hope the agency approves it at the current dose.” The panel voted 20-5 in favor of a new study testing a 0.25 milligram Gilenia pill once a day, which the FDA suggested may be “much safer” than the 0.5 milligram proposed daily dose, which was linked to heart, lung and liver risks and infections in studies. The panel voted unanimously that the study can wait until after the drug is on the market. Novartis said testing a lower dose would take 2,000 patients and five to six years. Shares Rise American depositary receipts of Novartis, each representing one ordinary share, rose $1.52, or 3.3 percent, to $47.45 at 4 p.m. in New York Stock Exchange composite trading . The Basel, Switzerland-based company’s ADRs have declined 13 percent so far this year in New York trading. The FDA usually follows its panels’ recommendations, though it isn’t required to do so. The agency is scheduled to decide whether to approve Gilenia by September. The review, initially set for six months, was delayed three months when Novartis said May 25 that the FDA requested additional analysis of current data. The advisers also recommended that the first dose of the drug be taken under a doctor’s supervision to identify heart rhythm changes linked to starting treatment and suggested that additional testing may be needed to monitor potential eye and lung risks. Les Funtleyder , a health-care strategist at Miller Tabak & Co. in New York, said before the meeting that he expected the drug to become a first-choice option for doctors, also called first-line therapy, with peak sales topping $1 billion a year. ‘Big Advance’ “This will be used in first line eventually,” he said yesterday in a telephone interview. “It’s such a big advance to go to oral from injectable.” Merck, of Darmstadt, Germany, said this week that it had resubmitted its application to sell cladribine tablets as a treatment for MS. The FDA initially rejected Merck’s submission in November, saying it was incomplete. Multiple sclerosis causes the body to attack nerve cells through the immune system. Gilenia and cladribine blunt the attack by targeting white blood cells that harm the protective coating of nerve cells. Cladribine was approved more than a decade ago to fight leukemia. Mitsubishi Tanabe Pharma Corp. , of Osaka, sold rights to Gilenia to Novartis in 1997 and will help the company develop the drug in Japan. Biogen Idec said older treatments such as its Avonex and Tysabri shouldn’t be scrapped if Gilenia, chemically known as fingolimod, is cleared for sale. “While there is a desire among the MS community for the convenience of an oral treatment, it is important for patients and physicians to consider efficacy, safety and long-term experience before choosing any therapy,” the Cambridge, Massachusetts-based company said today in an e-mailed statement. “The safety profile of fingolimod has yet to be established in a larger number of patients in the real-world setting.” To contact the reporter on this story: Catherine Larkin in Silver Spring, Maryland, at clarkin4@bloomberg.net .

Read the full article →

Amgen’s Bone Drug Cleared by FDA for Osteoporosis in Older Women

June 2, 2010

By Rob Waters June 1 (Bloomberg) — Amgen Inc.’s bone-strengthening drug denosumab, the focus of the largest development program in the company’s history, was cleared by U.S. regulators for use in postmenopausal women with osteoporosis. The U.S. Food and Drug Administration announced the approval of the drug, to be marketed as Prolia, today in a statement. The action follows the May 28 approval by European regulators. Amgen, the world’s largest biotechnology company, is looking to denosumab to boost growth amid slowing sales of its core products , anemia drugs Aranesp and Epogen. The medicine may have sales of $942 million next year, according to the average estimate of eight analysts surveyed by Bloomberg. It will take time for primary care doctors to learn about the medicine and become comfortable prescribing it, said Eric Schmidt , an analyst for Cowen & Co. in New York. “This will have a somewhat gradual rollout,” Schmidt said today in a telephone interview. “Doctors are going to be conservative in adopting a therapy that doesn’t yet have a long- term track record. There are very good drugs for osteoporosis with established track records and they’re cheap.” One of every two U.S. women older than age 50 will break a bone in their lifetime because of osteoporosis, the FDA said. More than 10 million people, mostly women, have the disease and another 34 million have low bone mass, according to estimates from the National Osteoporosis Foundation . Public Health “Due to its prevalence, osteoporosis is a serious concern to public health,” said Julie Beitz , director of the FDA’s Office of Drug Evaluation III, in the agency’s statement. The osteoporosis market was worth $8.4 billion in 2008, according to IMS Health Inc. , a research company in Norwalk, Connecticut. Currently marketed drugs include Fosamax, made by Whitehouse Station, New Jersey-based Merck & Co. , and Actonel, sold by Warner Chilcott Plc of County Louth, Ireland. “This is the first biotech product introduced into a general practice environment,” Roger Perlmutter , executive vice president for research and development for Thousand Oaks, California-based Amgen, said today in a telephone interview. “Physicians will want to understand it well.” The research and development effort devoted to denosumab was the most extensive and expensive in the company’s history, Perlmutter said. Injection Twice Yearly Amgen will start selling Prolia to doctors within two weeks at a wholesale price of $825 for a single 60-milligram injection, Perlmutter said. Patients get a shot once every six months. GlaxoSmithKline Plc , based in London, will co-market the drug in Europe. The treatment was approved based on studies of more than 7,800 women with osteoporosis and was shown to reduce fractures by 20 percent to 68 percent, depending on the bone location. Among patients treated with Prolia, 4 percent suffered serious skin infections, compared with 3.3 percent of those who took placebos, Perlmutter said. Amgen will follow more than 4,500 women who started taking denosumab in clinical trials for up to 10 years and will create a monitoring program to solicit reports and compile records about any adverse events in women taking the drug, the company said in a statement. Amgen asked the FDA in a separate application to approve denosumab for reducing fractures in cancer patients whose tumors have spread to their bones. The company also is conducting studies to see if the drug can stop cancer from spreading to bone. Approval for both of these uses may push sales up to $2.9 billion a year by 2013, according to the average estimate of four analysts surveyed by Bloomberg. Amgen shares increased 4.2 percent to $52.87 at 7:35 p.m. New York time in extended trading on the Nasdaq Stock Market after falling $1.02, or 2 percent, to $50.76 at the 4 p.m. close. To contact the reporter on this story: Rob Waters in San Francisco at rwaters5@bloomberg.net .

Read the full article →

Amgen’s Bone Drug Cleared by U.S. FDA for Osteoporosis in Older Women

June 1, 2010

By Rob Waters June 1 (Bloomberg) — Amgen Inc.’s bone-strengthening drug denosumab, the focus of the largest development program in the company’s history, was cleared by U.S. regulators for use in older women with osteoporosis. The U.S. Food and Drug Administration announced the approval of the drug, to be marketed as Prolia, today in a statement. The action follows the May 28 approval by European regulators. The medicine may have sales of $942 million next year, according to an average estimate of eight analysts surveyed by Bloomberg. Amgen, the world’s largest biotechnology company, is looking to denosumab to boost growth amid slowing sales of its core products , the anemia drugs Aranesp and Epogen. The Thousand Oaks, California-based company asked the FDA in a separate application to approve the drug for reducing fractures in cancer patients whose tumors have spread to their bones. Amgen also is conducting studies to see if the drug can stop cancer from spreading to bone. Approval for both of these uses may push sales up to $6 billion a year by 2015, Craig Gordon , an analyst for Cowen & Co. in New York, said in a December interview. Amgen shares increased 4.5 percent to $53.06 at 5:25 p.m. New York in extended trading on the Nasdaq Stock Market after falling $1.02, or 2 percent, to $50.76 at the 4 p.m. close. To contact the reporter on this story: Rob Waters in San Francisco at rwaters5@bloomberg.net .

Read the full article →

Melanoma Drug Unleashing Immune System Seen as Bristol Cancer Breakthrough

May 27, 2010

By Shannon Pettypiece May 27 (Bloomberg) — For more than three decades, scientists have dreamed of unleashing one of nature’s most powerful inventions, the human immune system, to treat cancer. Now, a wave of treatments that activate the immune system to attack tumors is emerging from drug-company laboratories, giving hope of longer life to patients with terminal lung cancer, leukemia, brain tumors and melanoma, Bloomberg Businessweek reports in its May 31 edition. Leading the push is Bristol-Myers Squibb Co. ’s experimental drug for skin cancer, one of dozens of immunotherapies to be spotlighted next week at the American Society of Clinical Oncology meeting. In its late stages, melanoma can be lethal within months, killing more than 65,000 people a year. Bristol- Myers’s drug, called ipilimumab, extended life in its deadly final phase, three small trials have found. If those results stand in data reported at the meeting, the drug may get U.S. regulatory approval as early as next year and may be in doctors’ hands in 2012, the company said in March 4 investor call. “We have hundreds of patients who are still alive after taking this treatment, and that is something unheard of” in advanced-stage melanoma, Renzo Canetta , Bristol-Myers’s vice president of oncology clinical research, said in a telephone interview. In the earlier trials, ipilimumab kept more than one-third of patients alive for at least 18 months, about a year longer than existing treatments for terminal melanoma. The trial to be reported at the cancer meeting tested the drug in 676 patients for five years, according to the study’s description. Bristol-Myers, based in New York, fell 16 cents, or less than 1 percent, to $22.72 in New York Stock Exchange composite trading yesterday. The company gained 14 percent in the past 12 months before today. 130,000 People Yearly Melanoma affects about 130,000 people a year according to the World Health Organization . No new treatment has been approved for the disease in more than a decade and current medicines keep patients with the advanced stage of the disease alive for six to eight months, said Steven O’Day, who tested the drug for Bristol-Myers at the Angeles Clinic and Research Institute in Santa Monica, California. Ipilimumab is central to Bristol-Myers’s plan to bolster its share of the $52 billion cancer-drug market and counter generic competition during the next six years to drugs with more than $11 billion in annual sales. If approved, the drug may have $1 billion in annual sales within five years, said Linda Bannister a health-care analyst at Edward Jones & Co. Success with ipilimumab will be a sign as to whether the company’s strategy of acquiring small biotechnology companies — they bought the drug’s creator Medarex Inc. for $2.4 billion last year — is paying off. Patent Expirations “Bristol faces a large amount of patent expirations and from that perspective ipilimumab is very important, this could be big for them,” said Bannister, who is based in Des Peres, Missouri. A success “will show that Bristol made a really good acquisition with Medarex,” she said. Jedd Wolchok, a skin cancer researcher at Memorial Sloan- Kettering Cancer Center in New York, is a believer. One of the first patients Wolchok treated with the drug in 2004 was a 24-year-old woman who likely had less than a year to live after failing on other treatments. After getting four doses intravenously, her tumors shrunk and eventually disappeared. She has started a family since and sends Wolchok a Christmas card yearly, he said. “We are resetting the balance between the person and the tumor and the tumor no longer has the upper hand,” Wolchok said in a telephone interview. “We have been talking about turning cancer into a chronic disease, and this shows it is possible.” Derived From Mice The Bristol-Myers’s drug is derived from mice that were genetically altered to create a human version of an antibody, a soldier in the immune system army. The antibody is designed “to push the accelerator down” on the system, said O’Day. The drug blocks a protein called CTLA-4, which when working properly keeps the immune system from getting too revved up and attacking the body’s own tissue. Tweaked by scientists at Medarex, the medicine opens the way for the body to release excessive white-blood cells that attack the tumors the way they would another foreign invader, such as a virus. Along with showing signs of aiding skin cancer patients, the drug’s action may also work against tumors of the lung and prostate, said Trevor Polischuk , an analyst with OrbiMed Advisors LLC in New York. ‘A Game Changer’ “This could be a game changer in cancer,” Polischuk said in a telephone interview. While ipilimumab is now one of Bristol-Myers’s most promising drugs in development, it could have died in testing two years ago had researchers not noticed a strange phenomenon among patients who they thought weren’t benefiting. A study released in December 2007 showed that it failed to meet the U.S. Food and Drug Administration’s criteria of benefiting at least 10 percent of melanoma patients. In 2008, when Bristol-Myers had been expecting to file for approval with the FDA, the company said it would delay its application after the agency said the current studies weren’t enough to garner approval. Company researchers, though, kept studying the drug on a hunch it was having a benefit that wasn’t detected in the studies. They noticed an odd trend among some patients whose tumors continued to get larger while they were on the medicine. Once these patients were removed from the study because they weren’t showing a benefit, their tumors unexpectedly began to shrink and the researchers found they were living months and, in some cases, years longer than expected. Bristol-Myers realized that what appeared to be tumor progression was an inflammatory response from the treatment as the white blood cells called T-cells attacked the tumor. Excluded Patients If researchers hadn’t excluded these patients from the data reported to the FDA in 2008, they may have been able to prove the benefit was greater than seen in previous studies, Bristol Myers’s Canetta said. Ipilimumab won’t be the first in the latest family of cancer immunotherapies to show strong success against a cancer. Dendreon’s prostate cancer vaccine Provenge was cleared by the FDA on April 29. That day, Dendreon’s stock rose as much as 38 percent, and the Nasdaq Biotech Index had its biggest rise in six months. Next week, at the American Society of Clinical Oncology meeting, the world’s biggest gathering of cancer doctors, a range of companies will show how their medicines will provoke, redirect, or accelerate the immune system to kill cancer cells. For instance, New York-based Pfizer Inc. , the world’s biggest drugmaker, will present data on a brain tumor vaccine from a study that’s in the second stage of three needed for U.S. regulatory approval. Micromet Technology Micromet Inc. , a Bethesda, Maryland, biotechnology company, will update doctors about a technology it developed that activates T-cells to attack tumors. German drugmaker Merck KGaA and Oxford BioMedica Plc of the U.K. will show how their vaccines work against breast and kidney malignancies. The concept of immunotherapy has taken a long time to bear fruit. In the early 1970s, scientists started developing lab- grown proteins called monoclonal antibodies, designed either to block tumor growth or make tumors visible to other immune-system cells. They do this by homing in on specific molecules or “targets” on the surface of cancer cells. The first success came in 1997, when Genentech Inc. and Biogen Idec Inc. launched Rituxan, a drug for non-Hodgkin’s lymphoma that last year had $5.7 billion in revenue. Drug Shortcomings While these drugs are a big business for companies, most have shortcomings as medicines because they only targeted one of multiple growth drivers pushing the tumors, said Steven Rosenberg , chief of surgery at the National Cancer Institute in Bethesda, Maryland. “We need to do better than prolonging survival by months,” Rosenberg said. Drugs like ipilimumab may be more effective for longer periods of time because they are training the immune system to recognize and attack cancer cells, researchers say. “The hope is that we aren’t just extending, but that we are really curing people with widespread cancer,” said O’Day, the researcher in California “It is a little early to say that, but there is hope.” To contact the reporter responsible for this story: Shannon Pettypiece in New York at spettypiece@bloomberg.net .

Read the full article →

Cholesterol Pill’s Blockbuster Potential Spurs Karo Bio’s Shortcut Search

May 27, 2010

By Michelle Fay Cortez      May 27 (Bloomberg) — A Swedish pharmaceutical company with no products on the market is hatching a drug-testing shortcut to catapult its experimental cholesterol pill into a potential $1.3 billion-a-year seller. Karo Bio AB’s drug, eprotirome, is generating attention from researchers because, when it is added to Pfizer Inc.’s Lipitor, the combination lowers cholesterol levels more than Lipitor alone. Because eprotirome works in a novel fashion, regulators such as the U.S. Food and Drug Administration require patient testing that can take at least five years and cost more than $500 million — time and money Karo doesn’t have. The company and the drug may be sprung by Steven Nissen , the head of cardiology at the Cleveland Clinic in Ohio. Nissen, who says there is a need for new types of cholesterol pills, is endorsing a clinical trial that can cut the usual time by half. He and the company need to persuade the FDA to go along, and Karo needs to get a large drugmaker to help pay for the trials, Bloomberg Businessweek reports in its May 31 issue. “What we are trying to do is look for a strategy that allows the company to move forward in a deliberative fashion to develop the data they need without costing half-a-billion dollars,” Nissen said in an interview. “That requires innovative thinking.” Karo is grappling with a conundrum faced by all companies working on novel heart drugs. Regulators want proof medicines are safe and prolong life before they are widely used. Definitive studies take resources that biotechnology companies often don’t have. Evidence Needed “Before you put millions of people on a drug for years and years, you need evidence that it’s beneficial,” said Robert Temple , director of the FDA’s office of drug evaluation, in an interview. “When you are using a drug chronically in fundamentally healthy people to prevent disease, how much assurance do you need? We certainly think about that.” Setbacks, such as Pfizer’s torcetrapib and AtheroGenics Inc.’s AGI-1067, led half a dozen companies, including Pfizer, to pull back on work for new heart disease drugs. New York-based Pfizer spent almost $1 billion on torcetrapib, an intended Lipitor successor, only to meet with failure in 2006 after 13 years of development. Nissen and Karo are proposing a shortened research path, one based on requirements the FDA imposed a year ago on diabetes drugs. Those medicines were originally approved on the basis of their ability to control blood sugar. Now companies must also show that the products don’t raise significant heart risks, as were found with Avandia, a medicine from London-based GlaxoSmithKline Plc. ‘A Few Thousand’ The goal for eprotirome is to show it cuts both cholesterol and heart attacks without serious side effects. Karo would study more patients — “a few thousand,” Nissen said — than were involved in the initial research for Lipitor and products like it, while taking less time and money than Pfizer’s torcetrapib, which had a trial involving about 15,000 people. The research would rule out serious safety hazards before the medicine is approved and give evidence of benefits. “Without further ado, we want to take this forward,” Jens Kristensen , chief medical officer of 23-year-old Karo, said in a telephone interview. “This is a new target and it’s the first new targeted compound within this area for many, many years.” If regulators clear Karo’s limited scope for research, it will still cost $300 million or more, said Erik Hultgard , an analyst at Handelsbanken Capital Markets in Stockholm. Hultgard and two more of the five analysts that follow Karo have a sell opinion on the company’s shares because of concerns that eprotirome won’t be developed successfully. One analyst has a buy rating and one has a hold, according to data compiled by Bloomberg . Price Target Hultgard’s price target is 5.50 kronor. The shares rose 0.7 percent at 11:53 a.m. in Stockholm trading to 7.05 kronor, valuing the entire company at 1.09 billion kronor ($139 million). The shares have declined 17 percent in 12 months. Eprotirome is a novel version of a thyroid hormone that is engineered to work only in the liver, where it helps clear cholesterol from the body. By contrast, Lipitor blocks a liver enzyme needed to produce cholesterol. Patients given eprotirome in addition to Lipitor or Merck & Co.’s Zocor had 32 percent lower levels of so-called bad LDL cholesterol than patients given the marketed medicines alone in a trial. Two other studies testing the drug alone and with alternative cholesterol treatments also posted positive results. Now, a final round of studies is needed to confirm the drug’s benefits. Research Partner Karo needs a partner to fund the research program outlined by Nissen, Kristensen said. The company originally planned to begin the final studies of eprotirome last year, and is delaying the start as it irons out study details with European regulators. Kristensen declined to specify how much the research may cost, saying the company can fund smaller studies alone. Karo had total assets of about $35 million at the end of 2009. More than 81 million Americans have some form of cardiovascular disease, or one in three adults nationwide, and every year 831,300 die from it, according to the American Heart Association , based in Dallas. Those numbers underscore the potential for eprotirome, said Alexander Lindstrom , an analyst at ABG Sundal Collier in Stockholm, who has a buy rating on Karo. “The unmet need is still large,” Lindstrom said in a telephone interview. “We estimate $1.3 billion in peak sales, though there are many drugs that sell a lot more. Getting higher sales isn’t a stretch, but even at these lower levels it would still be a commercial success.” Generic Lipitor The outlook for Lipitor, and for generic versions, figures into analysts’ views of how valuable eprotirome might be. Lipitor, which generated $11.4 billion in sales last year, will have lost patent protection by the time the eprotirome study is done, Handelsbanken’s Hultgard said. While Nissen’s studies may open the market for eprotirome, Hultgard said generic drugs might rush into the vacuum first. That may discourage investment from large pharmaceutical companies in new brand-name drugs in the niche, he said. “With the market being highly generic, I think the willingness to pay for these types of drugs will come down,” Hultgard said in a telephone interview. Bristol-Myers Squibb Co. , based in New York, had rights to eprotirome until giving them back in 2004, after working with Karo for seven years. Bristol-Myers discontinued all its internal work on medicines that target thyroid hormone receptors. Jennifer Mauer, a Bristol-Myers spokeswoman, declined to discuss the reasoning behind the decision. Risky Strategy Karo’s Kristensen said Bristol-Myers was interested in eprotirome for treating obesity, which would have required significantly higher doses and might have led to unacceptable side effects. Studies of the kind Nissen proposes can’t rule out all significant risk, said Rory Collins , co-director of the University of Oxford’s Clinical Trial Service Unit. “A strategy of working out how to do these large trials to get reliable information on safety and efficacy is the only way,” Collins said in a telephone interview. “We know hormones have other effects. I think one would be a little bit more wary and would want to have large-scale trials.” The FDA , which hasn’t yet seen the research plan developed by Karo and Nissen, needs to rule on it before the company can begin the final studies and bring a partner formally on board. Karo is in discussions with several companies, Kristensen said, declining to name them. The hard work will start once regulators determine what studies are needed to get eprotirome approved. The architect of Karo’s strategy is the 61-year-old Nissen, a drug-safety advocate and a frequent adviser to the FDA. “I’ve had more drug failures than I can count,” Nissen said. “I’m not guaranteeing success.” To contact the reporter on this story: Michelle Fay Cortez in London at mcortez@bloomberg.net

Read the full article →

Pfizer Rapamune Lawsuit: Pharma Giant Accused Of Targeting ‘High-Risk’ Black Patients For Unapproved Use Of Drug

May 25, 2010

Scroll down for the complaint In a stunning whistleblower lawsuit, the world’s largest pharmaceutical company is being sued over the dangerous practice of illegally promoting a kidney transplant drug for unapproved uses — and targeting African-Americans, even though they are at higher risk of complications. Two former hospital sales representatives, Marlene Sandler and Scott Paris, originally filed their suit in 2005 but the case was recently unsealed. The amended complaint against Pfizer and Wyeth was filed this week, as reported by the Pharmalot blog . Sandler and Paris claim that Wyeth, which is now owned by Pfizer, promoted the “off-label” use of Rapamune, a kidney transplant drug , encouraging its sales force to promote the drug for heart, lung, liver, and pancreas transplants even though Rapamune was never approved for those procedures. The Food and Drug Administration warned against such off-label use of Rapamune in 2004 and 2007. The suit claims: “Wyeth trained and encouraged its sales representatives to market Rapamune for uses outside those listed on the FDA-approved label and to misrepresent and withhold clinical information regarding the safety and efficacy of Rapamune. As a result of Wyeth’s wrongdoing, patients were put at risk of serious physical and financial harm, including: the disruption or discontinuation of stable treatment regimens; increased costs associated with treating side effects caused or exacerbated by Rapamune; life-threatening side effects such as anemia, bone marrow suppression, inhibited wound-healing, proteinuria, blood clots, leukopenia, thrombocytopenia, liver failure, pulmonary dehiscence; and death.” Off-label promotion of drugs has become one of the most controversial issues in the pharmaceutical industry, and has lead to host of federal indictments and massive settlements. Just last September, Pfizer agreed to plead guilty to criminal charges and to pay more than $2 billion in fines to settle allegations regarding its market practices, which included the off-label promotion of the antipsychotic Geodon and the antibiotic Zyvox. One of the most stunning allegations in the Sandler-Paris suit, is that Wyeth targeted African-American patients for unapproved use of the drug “even though they didn’t have data supporting its use in that population,” reports BNet.com . “Blacks are considered “high-risk” patients for kidney transplants because of their more vigorous immune response to new organs. Rapamune reduces immune response so patients don’t reject their new kidneys.” Yet the suit claims that Wyeth targeted two hospitals with predominantly African-American patient populations — Philadelphia’s Einstein Medical Center and New York’s SUNY Downstate Medical Center. Some hospitals, including the famed Mayo Clinic, raised concerns with Wyeth Global Medical Affairs that patients given the drug were experiencing “very serious side effects,” but “nothing was done,” according to the complaint. The suit alleges that several prominent doctors, including the clinical research director of the prestigious Cleveland Clinic, were involved in helping promote the use of Rapamune. The suit describes a speakers list of 18 physicians who could talk about off-label use of drugs. One of those cited was the Cleveland Clinic’s Dr. Stuart Flechner, who was available to speak about the use of Rapamune “for an honorarium of $2,000 or “prorated $15,000.” Flechner, a fellow of the American College of Surgeons, was named one of the Top Doctors in America, according to the clinic’s Website. When doctors at Mt. Sinai Medical Center expressed concerns about using Rapamune as part of a specific regimen, Wyeth brought in Flechner to talk to them: “Wyeth paid Dr. Flechner to assist in the marketing of the unapproved combination of Cellcept, an IL-2 receptor antagonist and Rapamune in order to overcome these objections and secure Rapamune sales.” Pfizer issued the following statement to HuffPost: “Pfizer is committed to patient safety and to ensuring that information provided to physicians for Rapamune is consistent with its FDA-approved indications. We are very confident that the current promotional practices surrounding this product are fully compliant with all legal requirements. “Rapamune was first approved by the FDA in 1999 for the prophylaxis of organ rejection in patients 13 years or older receiving kidney transplants. As the science has evolved, so, too, has our labeling information for Rapamune, which includes the appropriate caveats about treatment areas where safety and efficacy have not been established.” A spokesman for Wyeth’s then National Director of Transplant Sales Joe McCafferty, who selected Philadelphia’s Einstein Medical Center as the focus of the firm’s sales plan for Rapamune, did not return calls to HuffPost. A spokesman for the Cleveland Clinic did not return calls for comment. READ the complaint: PfizerWyeth

Read the full article →

Dendreon Advances the Most in Year After Winning Approval for Cancer Drug

April 29, 2010

By Catherine Larkin April 29 (Bloomberg) — Dendreon Corp. won approval for its first product, a vaccine to fight prostate cancer, after a three-year battle with U.S. regulators. The Food and Drug Administration cleared sales of the medicine, called Provenge, Shelly Burgess, a spokeswoman for the agency, said today in a telephone interview. Dendreon, of Seattle, submitted its application with the FDA in November 2006 and, after winning the backing of an advisory panel in 2007, was required to conduct another study to prove the drug worked. Provenge will be the first medicine to train the body’s immune system to attack cancer cells like a virus. More than 27,000 men die of prostate cancer each year in the U.S., according to American Cancer Society . Provenge may bring in $4.3 billion in annual sales by 2020, according George Farmer , an analyst with Canaccord Adams Inc. in New York. “Demand will be very high given the simplicity and convenience of administration combined with the extremely benign safety profile,” Farmer said in a research report today before the FDA’s decision was announced. Katherine Stueland , a spokeswoman for Dendreon, didn’t immediately return a telephone call for comment. Dendreon gained $5.88, or 15 percent, to $45.50 in Nasdaq Stock Market composite trading before shares were halted. Before today, the shares had gained 51 percent so far this year as investors looked ahead to the FDA decision, scheduled for May 1. Stock Volatility The historic volatility of the stock attracts traders and short sellers who seek short-term profits. Hedge funds own 27 percent of Dendreon shares, according to data compiled by Bloomberg. Provenge helped men whose prostate cancer had spread to other organs live four months longer in the 512-patient study released by the company in April 2009. The company had initially applied for approval based on an earlier study of 127 men that showed the drug improved survival and a second study of 98 men that failed to show a statistically significant benefit. The therapy involves extracting white blood cells from a patient, mixing them with vaccine components and injecting the combination back into the person. It is designed to be given earlier in treatment of the cancer and pose fewer side effects than chemotherapy. The FDA’s refusal to approve the drug in May 2007 based on the original data — even after the agency’s outside advisers voted 13-4 that it was “substantially effective” — sparked protests by patients and threats of a congressional probe. Sales Plans Dendreon Chief Executive Officer Mitchell Gold said Feb. 9 that the company will have three plants to make Provenge by mid- 2011 and 125 sales representatives. Production will be at full capacity within one year of approval, he said. Questions about manufacturing logistics and Dendreon’s ability to meet demand for Provenge have resulted in varying estimates for potential sales of the product. The drug will generate $1.2 billion by 2014, according to the average estimate of four estimates surveyed by Bloomberg. That year, Farmer projected Provenge would cost about $94,000 for each patient treated with a full course of the medicine. Provenge can generate $3.1 billion in 2014, he said. At least a dozen additional products that harness the immune system to battle tumors are in late-stage development and Provenge approval “would be an important validation to the field,” said Janice Reichert , a senior research fellow at the Tufts Center for the Study of Drug Development in Boston. “Provenge will certainly be a pioneer in that area,” Reichert said in an April 21 phone interview. “The experience will definitely inform the clinical development programs of other companies and other products.” The most advanced of these vaccines include Stimuvax from Merck KGaA in Darmstadt, Germany, and Oncothyreon Inc. in Seattle; ipilimumab from Bristol-Myers Squibb Co. in New York; and TroVax from Oxford BioMedica Plc in Oxford, United Kingdom. To contact the reporter on this story: Catherine Larkin in Washington at clarkin4@bloomberg.net .

Read the full article →

Richard Greener: George Carlin Was Right, About The Death Penalty And Bankers

April 19, 2010

George Carlin was right. About a lot of things, most particularly about the death penalty. Also about bankers. In George’s time, drug dealing was the big thing. He objected to the death penalty for drug dealers, but not for those who made their business run smoothly and more profitably. Here’s part of what George had to say: “The death penalty doesn’t mean anything unless you use it against people who are afraid to die. Like… bankers who launder the drug money… you want to slow down the drug traffic, you got to start executing a few of those fucking bankers. White, middle class Republican bankers. Let’s bring back crucifixions… on TV… Halftime! Monday Night! The Monday Night Crucifixions! You start nailing one white banker per week to a big wooden cross, you’re going to see that drug traffic begin to slow down…” George Carlin didn’t quite live long enough to see the Great Wall Street Heist of 2008. But it doesn’t take much to imagine his reaction to “Too Big To Fail.” Just think how much different Wall Street’s behavior might be today had we been “nailing one white (investment) banker to a big wooden cross” each Monday night since September 2008 when the bottom fell out of the financial industry’s boondoggle and the American taxpayers were panicked into footing the bill. Some may think the death penalty itself is archaic. A lot of people think it’s a rare occurrence. It isn’t. And, like a minor heart attack is really just one that happens to somebody else, a rare execution is one you don’t hear about. Some may be surprised to learn how often we use the death penalty these days. Since the Supreme Court ended a ten-year hiatus on executions in 1976, we have put to death 1,200 people. Yes, that’s twelve hundred men and women killed by the state in your name and mine. Those executed ranged in age from a 22 year-old Native American man in Oklahoma to a white man who was 77 years old when he was killed by the state of Mississippi. Of the 1,200 executions, 11 have been of women, ages 28 to 62. A majority of those executed, 671, have been white; 418 were black and 87 were Latino; 15 were Native Americans; 6 Asians. There was 1 Pakistani and 2 simply listed as “Other” complete the 1,200 legally killed by state authority. As of March 2010, we still have 3,277 people awaiting their executions – 1,457 whites; 1,364 blacks; 379 Latinos and 77 others. There are no bankers on this list. Nobody from Goldman-Sachs, AIG, Bank of America, JP Morgan, or the host of other Wall Street firms and big banks who participated in, and benefited from, the financial convulsions they caused to happen which have tumbled the US economy into chaos since 2008. And, naturally enough, there are no hedge fund managers on Death Row either. So, take a good look. Has the financial chicanery come to halt? I realize that some may say that bankers, hedge fund managers and the Princes of finance who gave us mortgage derivative schemes can’t all be guilty. Could be. That makes sense since we already know that not all those actually sentenced to death since 1976 were guilty either. In fact, since 1976, according to the Death Penalty Information Center, 138 people who were locked away on Death Row, counting down to their final hour, have been exonerated and released. In the last ten years alone there have been 55 such exonerations. Fatal errors avoided. How many of the 3,277 still sitting on Death Row right now are also innocent? Who knows? Some, no doubt, and a few of them, with a little luck, might just be exonerated in time – that is in time before they run out of time forever. Maybe George Carlin really did have the right idea. Maybe a few Wall Street gangsters socked away on Death Row might throw a frightful scare into their greedy colleagues and make them think twice before they pull off their next caper and ruin who knows how many more people’s lives. And if some of these Wall Street thugs are truly innocent, well, let them have the same fighting chance all the others have. Perhaps, someday someone might exonerate them. In the meantime, as George might have put it – “You’re going to see that Wall Street stealing begin to slow down…”

Read the full article →

GE Ignored Omniscan Safety Advice And May Have Hid Evidence From FDA, Documents Show

April 15, 2010

GE Healthcare ignored the advice of its own safety experts to “proactively” restrict use of its imaging drug, Omniscan, after reports in Europe linked the drug to a potentially crippling disease, according to a newly unsealed order in a lawsuit against the company. The recommendation came at a May 2006 meeting convened by the company’s vice president for drug safety. But instead of immediately alerting doctors to stop using the drug in high-risk patients, GE spent the next year arguing that approach wasn’t necessary, even as some government and radiological experts favored such a ban.

Read the full article →

Pfizer Said to Settle Massachusetts Neurontin Suicide Lawsuit for $400,000

April 2, 2010

By Jef Feeley April 2 (Bloomberg) — Pfizer Inc. agreed to pay about $400,000 to settle a lawsuit mid-trial that blamed its Neurontin epilepsy medicine for helping cause a Massachusetts man’s suicide, two people familiar with the accord said. Pfizer, the world’s largest drugmaker , agreed yesterday to resolve claims by Hartley Shearer’s family that Pfizer’s Warner- Lambert unit knew Neurontin posed a suicide risk and failed to disclose it to patients and doctors. Shearer’s wife and son sued the New York-based drug company in federal court in Boston. The settlement is the first of its kind for suicide claims tied to Neurontin, said the two people, who declined to be identified because terms of the deal aren’t public. “Pfizer is pleased to report that the Shearer case, pending before USDC Judge Young in Boston, has been settled on favorable terms,” Rob Haralson, a spokesman for Pfizer said. “While Pfizer maintains that it has strong defenses to each of plaintiff’s claims, and has great confidence in the jury and the Court, Pfizer agreed to settle the case for less than its defense costs remaining in this case.” Ron Rosenkranz, a lawyer for the Shearers, declined to comment. Pfizer faces more than 1,000 lawsuits accusing it of illegally promoting Neurontin for unapproved uses and helping to cause some users’ suicides. The settlement comes a week after another Boston jury ordered Pfizer to pay more than $140 million in damages to an insurer over the drug. Pfizer has denied any wrongdoing in connection with its handling of Neurontin. Pleaded Guilty The Warner-Lambert subsidiary pleaded guilty in 2004 to criminal charges brought by the U.S. Justice Department in connection with allegations it illegally marketed Neurontin and paid a $430 million fine. Pfizer acquired Warner-Lambert in 2000. The 57-year-old Shearer , a part-time lecturer at Williams College in Williamstown, Massachusetts, took Neurontin for 16 months before killing himself, according to court filings. His family contends his doctor wasn’t aware of Neurontin’s suicide risk when he suggested the drug to Shearer, who also served as a high-school hockey coach. The doctor prescribed Neurontin to Shearer to manage his pain, which was a so-called off-label use of the drug. While doctors may prescribe a drug for uses not found safe and effective by the FDA, federal law bars companies from promoting medicines for off-label uses. Dr. Charles King, a former Harvard University business professor, told jurors in the Shearer case yesterday Warner- Lambert officials used illegal off-label marketing tactics to turn Neurontin into a “blockbuster drug.” Roughly $10 Billion “They took a drug that was expected to generate $500 million over its lifetime and turned it into a drug that sold roughly $10 billion,” said King, an economist who testified for the Shearers as an expert on pharmaceutical-industry marketing practices. The Shearer suit was the second product-liability case over Neurontin to go to trial. In July 2009, a Peabody, Massachusetts, family dropped its suit over the suicide of a woman who was taking the drug. The family was in the second day of trial in federal court in Boston when it decided to dismiss the case. Another jury in Boston’s federal court March 25 said Pfizer must pay Kaiser Foundation Health Plan Inc. $47.4 million for misleading doctors on whether Neurontin was effective for illnesses such as migraines and bipolar disorder. The jury found the drugmaker violated the federal Racketeer Influenced and Corrupt Organizations Act, or RICO, and California’s Unfair Competition Law. The Oakland, California-based insurer is a unit of Kaiser Permanente, the largest U.S. nonprofit health maintenance organization. Under RICO, the amount of actual damages will be tripled to $142.1 million. The Shearer case is Shearer v. Pfizer Inc., 07-cv-11428- PBS, U.S. District Court, District of Massachusetts (Boston). To contact the reporters on this story: Jef Feeley in Boston federal court at jfeeley@bloomberg.net .

Read the full article →

Roche, Immunogen `Guided Missile’ Destroys Cells to Shrink Breast Tumors

December 12, 2009

By Rob Waters Dec. 12 (Bloomberg) — A “guided missile” combination drug called T-DM1 developed by Roche Holding AG and Immunogen Inc. shrank the tumors of one-third of the critically ill, advanced breast cancer patients in a study. The therapy combines Roche’s Herceptin with a potent cancer-killing drug developed by Immunogen. Herceptin acts as a guidance system, using its ability to home in on cancer cells to deliver the cancer treatment directly to its target, said Ian Krop of the Dana-Farber Cancer Institute in Boston. The “T” in the name is trastuzumab, the chemical term for Herceptin. T-DM1 would be the first product marketed by Waltham, Massachusetts-based Immunogen in its 28-year history. The two companies may seek regulatory approval next year, said Barbara Klencke, associate group director for clinical oncology at Genentech, the Roche unit that co-developed the drug. Herceptin generated $4.7 billion in sales last year. The combination product is “an extremely big deal for Immunogen because it validates and proves their technology,” said Jason Kantor , an analyst for RBC Capital Markets in San Francisco, in a Dec. 9 note to investors. “For Roche it’s important because it is a highly innovative follow-on product to one of their most successful franchises, and is the first of many drug conjugates Genentech has in development.” ‘Replace Herceptin’ The new therapy “has the potential to replace Herceptin” alone for patients whose breast cancer has spread and could also find use in treating gastric tumors, Kantor said. He predicted the drug could reach the market by the end of 2010. Partial results from the trial, released by Immunogen in a Dec. 9 regulatory filing, boosted Immunogen 8.9 percent to $8.89 in Nasdaq stock market trading that day. They closed yesterday at $8.77. The biotechnology company’s shares have more than doubled this year. Roche, based in Basel, Switzerland, fell less than 1 percent to 168.5 Swiss francs in Zurich trading. Immunogen, founded in 1981, has “had a few false starts” in past drug development efforts, said Chief Executive Officer Dan Junius in a telephone interview yesterday. The company has an accumulated deficit of $328 million over its 28-year history. Immunogen will earn a “mid-single digit” percentage off the sales of T-DM1 and has received $13 million of a possible $44 million in milestone payments from Roche, Junius said. Immunogen Technology Immunogen developed the technology for linking drugs and antibodies like Herceptin and is testing T-DM1 and other combinations in different cancers with Roche and other companies, Junius said. The study tested the drug in 110 women who’d had breast tumors for three years and whose cancer had moved outside their breasts. They had been treated with an average of seven different therapies including Herceptin, GlaxoSmithKline’s Tykerb and Roche’s Xeloda in an effort to stop or slow the cancer. Each intervention had failed. The DM1 drug added to Herceptin was derived from an old chemotherapy drug called maytansine that was found to be too toxic for patients in clinical trials two decades ago, said Krop, the study leader. Because Herceptin homes on the cancer cells that express the protein HER2, it delivers and releases DM1 only to those cells. “The warhead is the DM1,” said Krop, the study author, in an interview at the San Antonio symposium, where he presented his findings. “This approach gets the cytoxic drug to the cancer cells so it’s not floating around and causing other problems. Herceptin can still do all the things that Herceptin does” to prevent cancer cells from growing. Tumors Shrank In one-third of the women, their tumors shrank by 30 percent or more. Another 12 percent had stable disease for at least six months though their tumors didn’t shrink by at least 30 percent. The women went an average of 7.3 months without their condition worsening and had minimal side effects beyond those already seen with chemotherapy, Krop said. The drug is being tested in larger trials comparing it against other anti-cancer drugs for patients with earlier-stage breast cancer, Krop said. To contact the reporter on this story: Rob Waters in San Francisco at rwaters5@bloomberg.net .

Read the full article →

Celgene Cancer Pill to Triple Sales on Data That Threaten J&J Dominance

November 30, 2009

By Elizabeth Lopatto Nov. 30 (Bloomberg) — Celgene Corp. can more than triple sales for its best-selling cancer pill Revlimid on new data that may convince doctors to choose the drug as a first option over Johnson & Johnson’s intravenous medicine, Velcade. Revlimid generated $1.3 billion in sales last year as a back-up therapy for patients with the blood cancer multiple myeloma who don’t respond to other options. Findings from research to be reported next week will show how well the pill works as a first-choice treatment, in long-term use and against other tumors. A preliminary report on one study, released in July, suggested Revlimid helped patients live longer. About 20,000 Americans are diagnosed yearly with multiple myeloma, which kills two-thirds of patients within five years, said Kenneth Anderson , a professor at Harvard Medical School in Boston. Broadened use of Revlimid may push annual sales to $4.4 billion by 2016, said Mike King , a Merriman Curhan Ford & Co. analyst in New York, in a telephone interview. Positive results “change the standard of care,” said Anderson, who is an oncologist at Boston’s Dana-Farber Cancer Institute , in a telephone interview. “We treated the very first patients with Revlimid here many years ago. I have patients who have now spent 10 years on Revlimid therapy who are doing quite well. People will be very willing to go onto maintenance therapy” with this drug, he said. Celgene, of Summit, New Jersey, rose 43 cents to $55.06 at 9:57 a.m. in Nasdaq Stock Market composite trading. The stock had increased less than 1 percent in the year before today. J&J, based in New Brunswick, New Jersey, declined 39 cents to $62.50 in New York Stock Exchange composite trading. Bone Marrow Tumors Multiple myeloma causes malignant plasma cells to form tumors, and hinders the body’s ability to fight infections. Revlimid, derived from the drug thalidomide, works by programming cancer cells to commit suicide, and by creating an environment that stalls tumor reproduction. Celgene reported early results in July on the so-called MM- 015 study , designed to show whether using Revlimid and two older cancer therapies helped patients live longer than taking only the other drugs. That report suggested patients may benefit, and that the therapeutic effect was superior to Velcade’s in a similar trial, said Mark Schoenebaum , a Deutsche Bank analyst in New York, in a telephone interview. The MM-015 trial is one of more than 200 involving Celgene to be reported at the American Society of Hematology meeting starting Dec. 5 in New Orleans. Given that Revlimid generated 59 percent of Celgene’s revenue last year, the MM-015 data will be “the first, second, and third act” of the meeting for Celgene, Schoenebaum said. Market Share “The better the data” on that study, Schoenebaum said, “the more market share Revlimid gains.” Convenience will drive increased Revlimid use, because patients will prefer a once-a-day pill to infusions done in a medical office, said Ivan Borrello , an associate professor of oncology at Johns Hopkins University in Baltimore. “Does someone who’s actively working want to go into a doctor’s office twice a week to get Velcade?” Borrello said in a telephone interview. Revlimid was approved in the U.S. in December 2005 for patients with myelodysplastic syndromes, disorders of the blood cells that can lead to leukemia. It was cleared six months later for use as a secondary multiple myeloma therapy. Celgene already has gained about 30 percent of the first- line multiple myeloma market, even though it doesn’t yet have U.S. approval for that use, said Yaron Werber , an analyst with Citigroup Global Markets, in a note to clients this month. Velcade’s share is about 40 percent, Werber said. Velcade Sales Velcade sales surged in 2008 after it won U.S. clearance as a primary treatment for multiple myeloma. J&J, the world’s biggest maker of health products, markets Velcade outside the U.S. and last year reported a 47 percent increase in revenue to $787 million. Japanese drugmaker Takeda Pharmaceutical Co ., of Osaka, sells the medicine in the U.S., where it generated $413.7 million last year, a 43 percent jump, said Lauren Musto , a spokeswoman. The study that helped Velcade win clearance for first-line use in 2008 was a test similar to Celgene’s MM-015 research. Each trial examined whether patients lived longer without their tumors worsening after adding the new drug to a standard regimen of two older therapies, the steroid prednisone and Celgene’s Alkeran, sold generically as melphalan. In the Velcade trial, patients kept cancer at bay an average of eight months longer when the drug was added to the regimen. For that trial, patients were treated for 39 weeks. ‘Big Win’ The Revlimid trial included 30 weeks of therapy or placebo, said King, of Merriman Curhan Ford. “So you tie Velcade? That’s a big win,” King said. “You’re treating for a shorter duration, plus it’s a once-a-day pill rather than a twice-weekly infusion.” J&J declined to comment, referring calls to Takeda. Manisha Pai , a U.S. spokeswoman for Takeda, said in an e- mailed statement that she was “looking forward to interesting data at ASH that examine both the cost and convenience of Velcade compared with oral multiple myeloma therapy options, such as lenalidomide and thalidomide.” Revlimid is designed to be a more potent derivative of thalidomide, first approved in the U.S. in 1998 for leprosy , a progressive skin disease. This family of medicines can also trigger the immune system to fight tumors and hinder growth of blood vessels that nourish them. Thalidomide was linked to severe birth defects, including malformed limbs, in the 1960s and temporarily withdrawn from the market. The drug returned as a potent tumor-fighter, with a warning against use in women who are pregnant. Thalidomide Risks Because multiple myeloma is a difficult-to-diagnose form of cancer, it is often found late, when the benefits of treatment outweigh the risks associated with thalidomide, Harvard’s Anderson said. “Revlimid has made a remarkable difference in terms of the response you can achieve,” Anderson said. “The characteristics that make it attractive are that it’s oral, low dosage, and has few side-effects.” Celgene will also present preliminary results from its test of Revlimid as maintenance therapy at the hematology meeting, with more detailed results to follow in 2010 at the American Society of Clinical Oncology conference. That trial, called IFM-05-02, “has the potential to establish Revlimid as long-term maintenance therapy,” said Geoffrey Porges , an analyst for Sanford C. Berstein & Co. in New York, in a Nov. 11 note to investors. Other Cancers Additional data at the hematology meeting will show how Revlimid works when combined with Velcade and Swiss drugmaker Roche Holding AG’s tumor-fighter Rituxan, approved in non- Hodgkin’s lymphoma and rheumatoid arthritis. Revlimid is also being tested in chronic lymphocytic leukemia, a cancer of the white blood cells, and in so-called smoldering, or aysmptomatic, multiple myeloma. Another study at the hematology meeting will offer the first large human study results for Celgene’s experimental drug pomalidomide, a next-generation product in the same family of medicines as Revlimid. Pomalidomide “is expected to have significantly greater potency,” and “may genuinely have a role in late line multiple myeloma, even in patients who have progressed on prior Revlimid,” Porges said in his note. To contact the reporter on this story: Elizabeth Lopatto in New York at elopatto@bloomberg.net .

Read the full article →

Celgene Cancer Pill to Triple Sales on New Data Threatening J&J’s Velcade

November 30, 2009

By Elizabeth Lopatto Nov. 30 (Bloomberg) — Celgene Corp. can more than triple sales for its best-selling cancer pill Revlimid on new data that may convince doctors to choose the drug as a first option over Johnson & Johnson’s intravenous medicine, Velcade. Revlimid generated $1.3 billion in sales last year as a back-up therapy for patients with the blood cancer multiple myeloma who don’t respond to other options. Findings from research to be reported next week will show how well the pill works as a first-choice treatment, in long-term use and against other tumors. A preliminary report on one study, released in July, suggested Revlimid helped patients live longer. About 20,000 Americans are diagnosed yearly with multiple myeloma, which kills two-thirds of patients within five years, said Kenneth Anderson , a professor at Harvard Medical School in Boston. Broadened use of Revlimid may push annual sales to $4.4 billion by 2016, said Mike King , a Merriman Curhan Ford & Co. analyst in New York, in a telephone interview. Positive results “change the standard of care,” said Anderson, who is an oncologist at Boston’s Dana-Farber Cancer Institute , in a telephone interview. “We treated the very first patients with Revlimid here many years ago. I have patients who have now spent 10 years on Revlimid therapy who are doing quite well. People will be very willing to go onto maintenance therapy” with this drug, he said. Celgene, of Summit, New Jersey, rose 43 cents to $55.06 at 9:57 a.m. in Nasdaq Stock Market composite trading. The stock had increased less than 1 percent in the year before today. J&J, based in New Brunswick, New Jersey, declined 39 cents to $62.50 in New York Stock Exchange composite trading. Bone Marrow Tumors Multiple myeloma causes malignant plasma cells to form tumors, and hinders the body’s ability to fight infections. Revlimid, derived from the drug thalidomide, works by programming cancer cells to commit suicide, and by creating an environment that stalls tumor reproduction. Celgene reported early results in July on the so-called MM- 015 study , designed to show whether using Revlimid and two older cancer therapies helped patients live longer than taking only the other drugs. That report suggested patients may benefit, and that the therapeutic effect was superior to Velcade’s in a similar trial, said Mark Schoenebaum , a Deutsche Bank analyst in New York, in a telephone interview. The MM-015 trial is one of more than 200 involving Celgene to be reported at the American Society of Hematology meeting starting Dec. 5 in New Orleans. Given that Revlimid generated 59 percent of Celgene’s revenue last year, the MM-015 data will be “the first, second, and third act” of the meeting for Celgene, Schoenebaum said. Market Share “The better the data” on that study, Schoenebaum said, “the more market share Revlimid gains.” Convenience will drive increased Revlimid use, because patients will prefer a once-a-day pill to infusions done in a medical office, said Ivan Borrello , an associate professor of oncology at Johns Hopkins University in Baltimore. “Does someone who’s actively working want to go into a doctor’s office twice a week to get Velcade?” Borrello said in a telephone interview. Revlimid was approved in the U.S. in December 2005 for patients with myelodysplastic syndromes, disorders of the blood cells that can lead to leukemia. It was cleared six months later for use as a secondary multiple myeloma therapy. Celgene already has gained about 30 percent of the first- line multiple myeloma market, even though it doesn’t yet have U.S. approval for that use, said Yaron Werber , an analyst with Citigroup Global Markets, in a note to clients this month. Velcade’s share is about 40 percent, Werber said. Velcade Sales Velcade sales surged in 2008 after it won U.S. clearance as a primary treatment for multiple myeloma. J&J, the world’s biggest maker of health products, markets Velcade outside the U.S. and last year reported a 47 percent increase in revenue to $787 million. Japanese drugmaker Takeda Pharmaceutical Co ., of Osaka, sells the medicine in the U.S., where it generated $413.7 million last year, a 43 percent jump, said Lauren Musto , a spokeswoman. The study that helped Velcade win clearance for first-line use in 2008 was a test similar to Celgene’s MM-015 research. Each trial examined whether patients lived longer without their tumors worsening after adding the new drug to a standard regimen of two older therapies, the steroid prednisone and Celgene’s Alkeran, sold generically as melphalan. In the Velcade trial, patients kept cancer at bay an average of eight months longer when the drug was added to the regimen. For that trial, patients were treated for 39 weeks. ‘Big Win’ The Revlimid trial included 30 weeks of therapy or placebo, said King, of Merriman Curhan Ford. “So you tie Velcade? That’s a big win,” King said. “You’re treating for a shorter duration, plus it’s a once-a-day pill rather than a twice-weekly infusion.” J&J declined to comment, referring calls to Takeda. Manisha Pai , a U.S. spokeswoman for Takeda, said in an e- mailed statement that she was “looking forward to interesting data at ASH that examine both the cost and convenience of Velcade compared with oral multiple myeloma therapy options, such as lenalidomide and thalidomide.” Revlimid is designed to be a more potent derivative of thalidomide, first approved in the U.S. in 1998 for leprosy , a progressive skin disease. This family of medicines can also trigger the immune system to fight tumors and hinder growth of blood vessels that nourish them. Thalidomide was linked to severe birth defects, including malformed limbs, in the 1960s and temporarily withdrawn from the market. The drug returned as a potent tumor-fighter, with a warning against use in women who are pregnant. Thalidomide Risks Because multiple myeloma is a difficult-to-diagnose form of cancer, it is often found late, when the benefits of treatment outweigh the risks associated with thalidomide, Harvard’s Anderson said. “Revlimid has made a remarkable difference in terms of the response you can achieve,” Anderson said. “The characteristics that make it attractive are that it’s oral, low dosage, and has few side-effects.” Celgene will also present preliminary results from its test of Revlimid as maintenance therapy at the hematology meeting, with more detailed results to follow in 2010 at the American Society of Clinical Oncology conference. That trial, called IFM-05-02, “has the potential to establish Revlimid as long-term maintenance therapy,” said Geoffrey Porges , an analyst for Sanford C. Berstein & Co. in New York, in a Nov. 11 note to investors. Other Cancers Additional data at the hematology meeting will show how Revlimid works when combined with Velcade and Swiss drugmaker Roche Holding AG’s tumor-fighter Rituxan, approved in non- Hodgkin’s lymphoma and rheumatoid arthritis. Revlimid is also being tested in chronic lymphocytic leukemia, a cancer of the white blood cells, and in so-called smoldering, or aysmptomatic, multiple myeloma. Another study at the hematology meeting will offer the first large human study results for Celgene’s experimental drug pomalidomide, a next-generation product in the same family of medicines as Revlimid. Pomalidomide “is expected to have significantly greater potency,” and “may genuinely have a role in late line multiple myeloma, even in patients who have progressed on prior Revlimid,” Porges said in his note. To contact the reporter on this story: Elizabeth Lopatto in New York at elopatto@bloomberg.net .

Read the full article →

Swine Flu Cases in Europe Show Mutation, Resistance to Tamiflu Treatment

November 20, 2009

By Michelle Fay Cortez and Marianne Stigset Nov. 20 (Bloomberg) — European public health officials are investigating a handful of swine flu infections in Norway and Wales in which the virus mutated to a form that’s more severe or less sensitive to drug treatment. Five patients at a hospital in Wales contracted swine flu that resisted treatment with Roche Holding AG’s Tamiflu, and three more infections are still being analyzed, the U.K. Health Protection Agency said today. Another mutation that may trigger a more severe infection was discovered in Norway among two patients who died of the flu and one who was severely ill with the disease out of 70 cases tested, the Oslo-based Institute of Public Health said. The mutated virus is more difficult to pass from person to person, according to David Mercer , acting head of the communicable diseases unit of the WHO’s European region, and Geir Stene-Larsen, the head of the Norwegian institute. “We take this development seriously, but the HPA currently considers that the risk to the general healthy population is low,” the U.K. Department of Health said in a statement about the Wales cases. “The Tamiflu-resistant virus has emerged in a group of particularly vulnerable individuals. These patients are known to be at increased risk of developing resistance to the drug.” There have been 57 cases of swine-flu infection that resist Tamiflu treatment, the WHO said today. While most developed in people already taking the drug, Tamiflu resistance may have spread among four patients in the same unit of a U.S. hospital in October and November. Those cases are still under investigation. Person to Person The infections in Wales may have passed from a person using Tamiflu to patients who haven’t taken the drug, raising the possibility that a hard-to-treat form of the disease may spread, according to the U.K. health agency. The patients in Wales all had blood diseases that weakened their immune systems, either because of the condition itself or the chemotherapy used to treat it, according to the agency. Resistance to Tamiflu is known to occur in patients with weak immune systems, it said. All the Welsh patients remain sensitive to GlaxoSmithKline Plc’s Relenza, another antiviral treatment, the agency said. In Norway, the changes seen in the virus may allow it to penetrate deeper into the airways and cause more severe disease. “Based on what we know so far, it seems that the mutated virus does not circulate in the population, but might be a result of spontaneous changes which have occurred in these three patients,” Stene-Larsen said in the statement . “There is no indication that this change in the virus is of any importance for the effect of the vaccine or the effect of antiviral treatment.” Sensitive to Tamiflu The virus in Norway appears to be sensitive to Tamiflu and the vaccine now being offered in some areas to prevent swine flu infection, said Mercer of the WHO. “I don’t think it yet has the public health implications that we would wonder about,” Anne Schuchat , head of the National Center for Immunization and Respiratory Diseases at the U.S. Centers for Disease Control and Prevention, said at a news conference today about the Norway mutation. Similar mutations have been seen elsewhere and haven’t necessarily led to a more virulent disease, she said. Norway has had an estimated 700,000 cases of infections of H1N1, with 21 reported casualties. The institute estimates about 25 percent of the population of about 4.7 million to be at risk of contagion. “It’s most likely that the virus’ capability to mutate is not just specific to Norway, it will occur in other countries as well,” Stene-Larsen said in an interview on broadcaster TV2 today. Swine flu, also known as H1N1, has killed at least 6,770 people since the outbreak began in April, according to an estimate today from the World Health Organization. The U.S. Centers for Disease Control and Prevention estimated last week that the virus has infected 22 million people in the U.S. alone. The WHO no longer has an up-to-date count of global cases. To contact the reporter on this story: Michelle Fay Cortez in London at mcortez@bloomberg.net Marianne Stigset in Oslo at mstigset@bloomberg.net

Read the full article →

Sex-Prolonging Penis Spray May Help Premature Ejaculators, Research Finds

November 20, 2009

By Kanoko Matsuyama Nov. 20 (Bloomberg) — A spray-on treatment for premature ejaculation may prolong sexual intercourse by as much as five times, doctors found. The drug, which works by numbing the penis before sex, delayed orgasm by an average of 108 seconds, according to a study presented at a medical meeting in San Diego yesterday. The trial, involving 256 men in the U.S., Canada and Poland, found the drug improved the sexual satisfaction of both patients and partners while causing no serious side effects. The product incorporates two local anesthetics in an aerosol applied to the tip of the penis, according to Shionogi & Co. , its Osaka, Japan-based developer. It aims to treat a sexual dysfunction affecting as many as a third of American men aged 18 to 59 years, Shionogi’s Sciele Pharma Inc. unit said in a statement. Johnson & Johnson said in February it won approval in Sweden and Finland for the first prescription pill to treat the problem, three years after U.S. regulators rejected the drug. “Premature ejaculation can have a powerful negative impact on the emotional and sexual lives of men and their partners,” Stanley E. Althof , executive director of the Center for Marital and Sexual Health of South Florida, said in the statement. Shionogi’s results “seem to be a step in the right direction.” Premature ejaculation is defined by the International Society for Sexual Medicine as the inability to delay ejaculation for more than 1 minute after vaginal penetration. Study participants taking Shionogi’s compound, called PSD502, took an average of 2.6 minutes to ejaculation, compared with 0.8 minute for those given a placebo, according to results presented yesterday at the annual meeting of the Sexual Medicine Society of North America Inc. Sciele said in May it would prepare to submit the treatment for regulatory review in the first half of 2010. Shionogi shares gained as much as 1.7 percent to 1,859 yen on the Tokyo Stock Exchange. They traded 0.9 percent higher at 1,844 yen in morning trading. Japan’s Topix Pharmaceutical Index, which tracks 33 of the country’s drugmakers, declined 0.7 percent. To contact the reporter on this story: Kanoko Matsuyama in Tokyo at at kmatsuyama2@bloomberg.net .

Read the full article →

Vivus Erection Drug Avanafil Helps Men in 30 Minutes, Company Study Says

November 18, 2009

By Rob Waters Nov. 18 (Bloomberg) — Vivus Inc ., an unprofitable biotechnology company, said its experimental impotence drug helped men achieve erections in as little as 30 minutes in a study, or about twice as fast as Pfizer’s Inc.’s Viagra. Data showing the drug, called Avanafil, acts quickly will help Vivus seek U.S. permission to enter the $3.7 billion erection-drug market in 2011, said Chief Executive Officer Leland Wilson . Vivus shares rose as much as 12 percent. Wilson said he may introduce Avanafil in early 2012. As many as 322 million men worldwide may have erectile dysfunction by 2025, according to an Oct. 19 report by the American College of Physicians. Avanafil will grab market share because it works faster than the market-leading Viagra, which takes an hour to produce results and Eli Lilly & Co.’s Cialis, which takes about two, Wilson said in a telephone interview. “Patients want on-demand therapy because when the mood is right, the mood is right,” Wilson said. “We’ve shown efficacy in 30 minutes and no one else has done that.” Vivus jumped 48 cents, or 5.6 percent, to $9.05 at 10:06 a.m. New York time in Nasdaq Stock Market composite trading, after earlier touching $9.60. The company had risen 61 percent in the year before today. Avanafil could bring in $350 million by 2015, grabbing about the same market share as Levitra, said Jason Butler , an analyst for JMP Securities in New York, in a telephone interview yesterday. The key, he said, will be for Vivus to find a partner willing to spend money on promotion. Viagra, Cialis, Levitra In 2008, Viagra, made by New York-based Pfizer, the world’s biggest drugmaker, had about half of the erectile-dysfunction market. Cialis, made by Indianapolis, Indiana-based Eli Lilly & Co . had 40 percent and Levitra, made by Germany-based Bayer AG 10 percent. “This is a hugely promotion-driven market,” he said. “Viagra and Cialis win because they have sales reps that call on doctors every day of the week and they spend a huge amount on advertising.” Vivus won U.S. approval for its first erection product Muse in 1996, two years before Viagra was cleared for sale. Muse, a product designed to push erection-boosting medicine into the urethra, was quickly displaced by the little blue pill Viagra. Muse had revenue of $18.05 million last year. Vivus also is competing to introduce a new weight-loss drug for obesity patients with Arena Pharmaceuticals Inc. and Orexigen Therapeutics Inc. , both based in San Diego. The Mountain View, California-based company has said it will seek permission from the Food and Drug Administration to sell the treatment, Qnexa, by the end of the year. Partnership Needed While Vivus needs to form a partnership with a major drugmaker to market its erectile dysfunction pill, Wilson said he may wait to make a deal until the company has completed its clinical trials and submitted its application to the FDA. “As we move forward, it will increase our value,” he said. The Vivus study compared three doses of Avanafil to placebos in 646 patients with erectile dysfunction , a condition that affects 15 to 30 million U.S. men, according to a National Institutes of Health Web site. Before the late-stage study, 12 to 14 percent of men achieved erections that allowed them to have sexual intercourse. Men taking the lowest 50-milligram dose got erections 40 percent of the time, while those taking either the 100 milligram or 200 milligram doses achieved erections 57 percent of the time, according to a Vivus statement. Men taking placebos were able to have sex 27 percent of the time. Visual Distortions None of the patients had visual distortions such as those reported rarely by some Viagra and Cialis patients who said the drug added a blue tinge to their vision, Wilson said. The visual changes on those pills cleared up within a few hours, according to an Indiana University study reported April 13. About 85 percent of patients taking the Vivus drug completed the 16-week study. The most-common side effects were headaches, experienced by 7 percent of the men, facial flushing, experienced by 4.6 percent and nasal congestion, experienced by 2.3 percent. Patients in the study were men older than age 18 who had erectile problems for at least six months and excluded those taking nitrate heart medicines. Men using these medicines are also warned not to take the erectile dysfunction drugs on the market. Trials are under way for patients whose erection difficulties are linked to their diabetes , one of the most common causes of impotence, and for men who had surgery for prostate cancer, Wilson said. Viagra works within 30 minutes to 2 hours, according to prescribing information on the drug’s label. The median time to effectiveness is 60 minutes. Cialis, when taken as needed, can work within 30 minutes to 6 hours, according to prescribing information , with effectiveness achieved after a median of 2 hours. The drug can also be prescribed for daily use. To contact the reporter on this story: Rob Waters in San Francisco at rwaters5@bloomberg.net .

Read the full article →

Cannabis Cafe: First U.S. Marijuana Cafe Opens In Portland

November 13, 2009

The United States’ first marijuana cafe opened on Friday, posing an early test of the Obama administration’s move to relax policing of medical use of the drug.

Read the full article →

Daily Aspirin Can Prevent Colon Cancer in High-Risk Group, U.K. Study Says

September 21, 2009

By Naomi Kresge Sept. 21 (Bloomberg) — Taking aspirin daily for at least five years can prevent patients at high risk of a hereditary type of colorectal cancer known as Lynch syndrome from developing tumors, researchers said in a study to test the 110- year-old medicine’s usefulness against the malignancy. Patients given 600 milligrams of aspirin a day had about one-third of the cases of colon cancer 10 years after the trial began than those who didn’t take the drug. An analysis of the 1,071 patients in the trial failed to show any benefit after 29 months. Researchers presented the data today at the European Cancer Organization and European Society for Medical Oncology conference in Berlin. Though Lynch syndrome accounts for only about 5 percent of all colon cancers, the findings could point toward effectiveness in the general population as well, study author John Burn, a professor at the Institute of Human Genetics at Newcastle University, said at a press conference. “At least in a high-risk group, we’ve got a treatment that works, that we know the side effects of, and it’s cheap,” Burn said. Previous trials may not have been long enough to prove aspirin’s benefit, he said. Burn’s team targeted people genetically at risk for Lynch syndrome because these are likely to develop cancer more quickly. “The benefits are probably not seen in the general population for at least 10 years,” he said. Cancer Rates The difference in cancer rates didn’t emerge until about five years after initial treatment. Researchers tracked 628 of the people that began the trial, finding six cases of colon cancer among people who took aspirin and 16 cases among people who didn’t. The effect continued about six years after patients used aspirin and correlates with how long they took the drug. Eleven of the people taking aspirin had gastrointestinal bleeding or ulcers, compared with nine in the placebo group, Burn said. Three of the people taking aspirin had heart attacks or strokes, compared to eight in the placebo group. Harvard Medical School researchers this summer found that regular use of aspirin , first patented by German drugmaker Bayer AG in 1899, may be able to lower patients’ risk of dying of colon cancer by more than half. Cox-2 Link The Harvard study suggested aspirin could prevent tumors from growing by inhibiting Cox-2 , an enzyme that may play a role in the initial growth of a tumor. That study found that people who tested positive for the Cox-2 enzyme saw a greater benefit than those who didn’t. Researchers aren’t sure why aspirin prevented tumors in today’s study, but they don’t think Cox-2 is the reason, Burn said. Aspirin could be affecting cancer stem cells, he said. Colorectal cancer includes malignancies that form in the tissues of the colon, which is the longest part of the large intestine, and tumors that develop in the rectum, the part of the large intestine closest to the anus, according to the National Cancer Institute . It is the fourth-most-common cancer in the U.S. Burn’s research team plans to study whether a lower dose of aspirin will also ward off colon cancer. The study presented today was financed by U.K. cancer research funds and Bayer. To contact the reporter on this story: Naomi Kresge in Berlin at nkresge@bloomberg.net

Read the full article →

Video: Glaxo Heads To Court Over Paxil

September 11, 2009

Glaxo heads to court over the drug Paxil’s birth defects. (Bloomberg News)

Read the full article →

Video: Glaxo Heads To Court Over Paxil

September 11, 2009

Glaxo heads to court over the drug Paxil’s birth defects. (Bloomberg News)

Read the full article →

Genzyme Factory Woes May Give Shire $50 Million Windfall on Drug Shortage

September 11, 2009

By Trista Kelley Sept. 11 (Bloomberg) — Shire Plc , the U.K. maker of the hyperactivity drug Adderall, may reap a $50 million windfall in 2010 after its treatment for the rare genetic disorder Gaucher disease was rushed to the market a year earlier than planned because of a manufacturing disruption at Genzyme Corp. Genzyme’s setback also hands Shire the chance to garner $139 million in revenue in 2011, according to Citigroup Inc., which says Shire’s velaglucerase alfa may grab 15 percent of the $1.1 billion market for Gaucher disease treatments by 2012. “The question for us isn’t how much market share we’re going to get in the short term, the question is how much can we get to the market,” Shire Chief Executive Officer Angus Russell said in an interview this week. “I’m pretty sure demand will exceed that, hence the need for more drugs.” The introduction of the Gaucher drug is accelerating Russell’s plan to cut Shire’s dependence on attention deficit hyperactivity disorder drugs. Hyperactivity drugs Adderall and Vyvanse made up half of 2008 sales . Revenue sank 19 percent in the second quarter on generic competition to Adderall. Shares of Basingstoke, England-based Shire have risen 13 percent in the past year, compared with a 9.4 percent drop in the Bloomberg Europe Pharmaceutical Index . The majority of Gaucher patients took Genzyme’s Cerezyme until a virus at a Genzyme factory prompted regulators to halt output in June. The virus, Vesivirus 2117, originated in a nutrient used in the manufacturing process. With the resulting shortage, the U.S. Food and Drug Administration allowed Shire to rush velaglucerase alfa to the neediest patients even though the drug isn’t approved. The first patient began treatment this week. Enzyme Replacement Gaucher disease is an inherited disorder caused by low levels of an enzyme responsible for breaking down a fatty substance that can build up in the spleen, liver and brain, according to the U.S. National Institute of Neurological Disorders and Stroke . Depending on the type of the disease, it can lead to bruising, anemia, seizures, brain damage and death. It’s one of the world’s rarest diseases, affecting an estimated 5,000 to 8,000 people globally, said John Barranger , a Gaucher specialist at the University of Pittsburgh . Cerezyme and velaglucerase alfa are both enzyme replacement therapies. Shire said Sept. 8 it could supply from 300 to 600 patients, depending on dosing variations. The company is accelerating plans for a new manufacturing plant in Lexington, outside of Boston, to help boost capacity for velaglucerase alfa, Russell said. He confirmed Citigroup’s expectation that Shire will expand capacity to 900 patients next year and more than 1,000 patients after that. Added Sales “We do have a very big manufacturing facility we hope will come on stream the back end of next year, perhaps,” Russell said. “If that’s successful and we manage to achieve our objectives, we hope to achieve broadly those sets of numbers.” The earlier launch could add 1 to 2 percent to total Shire sales in the “the short term,” he said. Shire had revenue of $629.7 million in the second quarter. Genzyme started rationing Cerezyme in June after the closing of the company’s Allston Landing plant in Boston for decontamination, alarming patients who relied on it as the only enzyme replacement treatment available. “Patients are concerned that they will begin to deteriorate, especially because much of this deterioration can be irreversible,” said Barranger, who helped develop the first enzyme replacement therapy for Gaucher patients in the 1970s. Safety Plan Shire submitted a safety plan to the FDA to allow velaglucerase to be available while Genzyme makes a new supply, which the Cambridge, Massachusetts-based company has said should reach patients in November. A Genzyme spokesman didn’t return a call for comment. “We’re working as fast as we can to accommodate the need where we can,” Sylvie Gregoire , head of Shire’s human genetic therapies, or HGT, unit, said in an interview. Shire said Sept. 1 it applied to the FDA for approval of the drug and would seek European approval by year’s end. Hyperactivity “remains very important for Shire but I think it’s kind of rational and sensible that the rest of the business gets more focus,” Jack Scannell , a Sanford C. Bernstein & Co. analyst in London, said in an interview. “The change in the perception has been something that Shire has been trying to do for ages and now Genzyme has done it for them.” Scannell has a “market perform” rating on the shares. Strategic Goal “It’s always been a strategic goal to get vela into the market; the only benefit now is that’s coming a year ahead of time,” said Russell, the Shire CEO. “That’s obviously good as that down the road can lead to faster profits, faster cash flow, and more reinvestment into the HGT business in the longer term.” Cerezyme, approved in 2001, costs about $200,000 annually per patient. Citigroup’s Peter Verdult , who has had a “buy” rating on Shire since April 2007, estimates Shire will discount its drug by about 25 percent to Cerezyme’s price, allowing Shire to grab more market share. “The drug is proven to be equivalent to Genzyme’s product so I don’t see any major need for significant discounting,” said Russell, who declined to specify the price. “There will still be other strategic issues down the road so those final decisions haven’t been made.” Shire on Aug. 3 said initial data from final-phase trials showed velaglucerase alfa met its main goals of boosting the oxygen-transporting protein hemoglobin in the blood, while managing swelling in the spleen and liver. Full data will be presented this year, and the company is in talks with regulators for approval expected in the U.S. early next year and in Europe by the end of 2010. “There’s really nothing in the way of having good discussions,” said Gregoire, adding that Shire will hire a “small” number of sales people to promote the drug. “There’s a need and the data is positive.” To contact the reporter on this story: Trista Kelley in London at tkelley2@bloomberg.net

Read the full article →

Dainippon Agrees to Buy Sepracor for $2.6 Billion, Gaining U.S. Salesforce

September 2, 2009

By Kanoko Matsuyama and Tom Randall Sept. 3 (Bloomberg) — Dainippon Sumitomo Pharma Co. is close to an agreement to buy Sepracor Inc. to expand in the world’s biggest drug market, two people familiar with the transaction said. Dainippon may pay 250 billion yen ($2.7 billion) for Sepracor, gaining a U.S. sales force of 1,000 and experimental drugs, the Nikkei English News reported. The people didn’t provide a value for the acquisition. Osaka-based Dainippon will announce a takeover today, spokesman Nobuo Takeda said by telephone, declining to identify the target. Japanese pharmaceutical companies have spent more than $12 billion since 2008 buying U.S. rivals, taking advantage of the yen’s 26 percent gain against the dollar in the past two years to expand in the $291 billion U.S. prescription-drug market. Dainippon, a unit of Japan’s second-biggest chemical company, surged as much as 8.1 percent in Tokyo trading today. “The yen is very strong, and Japanese companies have been very active in this space,” Les Funtleyder , an analyst with Miller Tabak & Co. in New York, said by telephone. “It’s been pretty widely known that Sepracor has been shopping itself for a while. It’s a cheap company, on a valuation basis.” Marlborough, Massachusetts-based Sepracor rose the most in more than five years on the Nasdaq yesterday before trading in the stock was halted. Jonae R. Barnes , a company spokeswoman, didn’t immediately respond to a voice mail seeking comment after office hours. First U.S. Drug Dainippon, the drug unit of Sumitomo Chemical Co. , plans to submit its experimental schizophrenia treatment Lurasidone for U.S. regulatory approval in 2010. That would be the first drug sold in the U.S. by the company, which is also developing treatments for diabetes, hypertension, bronchial asthma and allergic rhinitis. The takeover target “is a company that will enable us to market Lurasidone most effectively,” spokesman Takeda said. “We have been considering options such as selling the drug by ourselves or granting the rights to other companies.” Sepracor is researching drugs including treatments for asthma, allergic rhinitis and insomnia, according to its Web site. Its experimental epilepsy drug, Stedesa, awaits a U.S. decision due by Jan. 30, 2010, while sales of the company’s biggest product, Lunesta, declined in 2008. “This is a good match,” Yasuhiro Nakazawa , an analyst at Mitsubishi UFJ Securities Co. in Tokyo, said by telephone. “Sepracor is strong in the areas of sleep disorders and respiratory ailments, which are Dainippon Sumitomo’s focus.” Takeover Plans Takeda Pharmaceutical Co. last year acquired Millennium Pharmaceuticals for $8.9 billion and Eisai Co. bought MGI Pharma Inc. for $3.9 billion. Drugmakers in Japan are looking for overseas expansion opportunities to cope with government- mandated price cuts in the domestic market. Dainippon Sumitomo’s net income dropped 22 percent to 20 billion yen in the year ended March 31. More than 90 percent of its 264 billion yen in full-year sales came from Japan. Sepracor’s net income jumped more than eightfold to $515 million last year, while revenue rose 5.5 percent to $1.3 billion. Prescription sales in the U.S. rose 1.3 percent to $291 billion last year, according to Norwalk, Connecticut-based research firm IMS Health Inc. in March. “This is quite an aggressive strategy,” Fumiyoshi Sakai , an analyst at Credit Suisse Group AG in Tokyo, said by telephone. “The biggest challenge will be whether Dainippon Sumitomo is able to make new medicines that sell well in the U.S. after Lurasidone.” Dainippon gained 3.2 percent to 1,045 yen as of 12:50 p.m. on the Tokyo Stock Exchange, after rising to as high as 1,095 yen, while the benchmark Nikkei 225 Stock Average slipped 0.2 percent. The stock has surged 25 percent this year, after adding 1.7 percent in 2008. Sepracor jumped 26 percent to $22.80 in Nasdaq Stock Market composite trading before trading was halted. To contact the reporters on this story: Kanoko Matsuyama in Tokyo at kmatsuyama2@bloomberg.net ; Tom Randall in New York at trandall6@bloomberg.net .

Read the full article →

AstraZeneca’s Brilinta Cuts Heart Attack, Death More Than Sanofi’s Plavix

August 30, 2009

By Michelle Fay Cortez Aug. 30 (Bloomberg) — AstraZeneca Plc’s experimental blood-thinner Brilinta prevented 16 percent more heart attacks, strokes and deaths than standard therapy with Sanofi-Aventis SA’s and Bristol-Myers Squibb Co. ’s Plavix in a study. Brilinta’s potency didn’t cause more episodes of serious bleeding, a common complication seen with drugs that ward off heart conditions by preventing blood clots from developing, the research showed. The findings position Brilinta to rival Plavix, the second-biggest selling medicine in the world with almost $10 billion in annual revenue, for millions of patients suffering from heart attacks or severe chest pain. About 1.3 million Americans are hospitalized each year with heart attacks and chest pain known as acute coronary syndromes. While aspirin and Plavix have lowered their subsequent health risks, cardiovascular disease remains the leading cause of death worldwide. Death from any cause was also significantly lower in patients taking Brilinta, according to the results of the study known as Plato. “I think this will become the new standard of care,” said Douglas Weaver, a cardiologist at Henry Ford Hospital in Detroit and a past president of the American College of Cardiology, in an interview. “It’s more rapid, more effective and it appears to be safer” than Plavix and another competitor, Effient, from Eli Lilly & Co. and Daiichi Sankyo Co. “I don’t think they could have done much better than they did in this trial.” The trial, funded by London-based AstraZeneca, included 18,624 patients and was one of the most eagerly anticipated findings presented at the European Society of Cardiology meeting in Barcelona this week. It was simultaneously published in the New England Journal of Medicine. Sales Estimate Sachin Jain , an analyst at Bank of America Merrill Lynch in London, forecast $500 million in sales by 2015 in an Aug. 17 note to investors, and said he may raise his estimate to $1.3 billion if the drug has a meaningful benefit without serious side effects. AstraZeneca needs Brilinta to help replace sales lost to generic competition for its best-selling drugs, as products including Seroquel that now account for about 62 percent of the company’s revenue will face lower-priced competition by 2014. The Brilinta findings may not be enough to replace the lost sales, wrote Kevin Wilson , an analyst at Citigroup Inc. in London, in an Aug. 19 note to investors. “Brilinta peak upside sales of $4 billion would be expected to be reached more than five years post-launch, once physicians become comfortable with how to get the best out of the product,” he wrote. “Even exceptional Brilinta success is not enough,” given the time it would take for doctors to embrace it, he said. Seeking Approval AstraZeneca plans to file for approval of Brilinta in the fourth quarter and hopes to begin selling it next year, said Gunnar Olsson , the company’s head of cardiovascular therapy. Brilinta, Plavix and Effient all work by preventing platelets from clumping together in the blood to form clots. Plavix and Effient, which was approved this year in Europe and the U.S., last for the life of the platelet, or about a week, and are given once a day. Brilinta needs to be taken twice daily. About 30 percent of patients don’t respond well to Plavix. Brilinta’s effects wear off in a few days, making surgery easier for patients who need it. One in 10 patients rushed to the hospital with chest pain or heart attacks actually need by-pass surgery, said Christopher Cannon , a cardiologist at Brigham and Women’s Hospital in Boston. If they are given Plavix or Effient, they must wait five days before getting the surgery, he said. ‘Huge Conundrum’ “It’s a huge conundrum, a headache for doctors, hospitals and patients,” he said in a telephone interview. “This opens the door. It’s a neat differentiating factor that could open up treatment options.” In the study, 9.8 percent of patients taking Brilinta for a year after being treated for a heart attack or worsening chest pain suffered another heart attack or stroke, or died from vascular disease, compared with 11.7 percent of those given Plavix. Overall, 4.5 percent of Brilinta patients died from any cause, significantly fewer than the 5.9 percent of Plavix patients who died. The rates of major bleeding were similar between the two groups, occurring in 11.6 percent of those on Brilinta and 11.2 percent of those on Plavix. Fatal bleeding in the brain was more frequent in those given Brilinta, while fatal bleeding in other areas was more common with Plavix. Brilinta was linked to more serious bleeding in the brain and stomach of patients who didn’t undergo bypass surgery, the study found. Safety Monitoring In an accompanying comment in the New England Journal, Albert Schoemig of the German Heart Centre in Munich wrote that the safety of Brilinta, also known as ticagrelor, needs to be tracked closely. “The whole story concerning the adverse effects of ticagrelor may require evaluation in a much larger number of patients, something that may be beyond the capacity of a randomized trial,” Schoemig wrote. “We should carefully monitor patients receiving this drug to establish the overall impact of its side effects.” A separate study unexpectedly found high doses of Plavix and aspirin failed to reduce the risk of heart attack, stroke or death from cardiac causes better than lower doses. The trial, dubbed Current Oasis 7 , involved more than 25,000 patients and is one of the first to specifically compare the most widely used doses of the two drugs given to almost all patients with heart attacks and severe chest pain. Plavix Results About half of patients get the higher double dose of Plavix with the expectation that more medicine will better prevent deadly clots from forming, Cannon said. The same rationale is given for using more aspirin. “We’ve adopted this because it makes good sense, but there is very little evidence,” he said. “It’s a fascinating thing how hard it is to prove the right dose. Now, 10 years in, we’re seeing if a higher dose helps.” In patients who underwent procedures to clear clogged heart arteries, about 70 percent of those in the trial, the double 600-milligram dose of Plavix lowered heart risks by 15 percent. In them, 3.9 percent of those getting high dose Plavix for a week developed complications or died within a month, versus with 4.5 percent of those given the approved 300-milligram dose. The trial was funded by Sanofi and Bristol-Myers. It could change the way doctors view Lilly and Daiichi’s Effient, since studies used to get approval of the drug known chemically as prasugrel used the lower Plavix dose for comparison. Higher Dose The higher dose Plavix slashed the risk of stent thrombosis, a deadly complication that occurs when a blood clot clogs a device used to prop open the artery, by 42 percent, said Shamir Mehta, director of interventional cardiology at McMaster University in Hamilton, Canada. There were no differences in stroke and death rates from cardiovascular disease alone, or in bleeding rates, he said. “This will result in a change in practice so patients will be receiving a double dose of clopidogrel for a full week, rather than just when they first come in,” he said in a telephone interview, using the chemical name for Plavix. “All things considered, a double dose of clopidogrel looks pretty good. It comes down to safety, since the efficacy outcomes were very similar to each other.” To contact the reporter on this story: Michelle Fay Cortez in London at mcortez@bloomberg.net

Read the full article →