Healthy Skepticism Library item: 7135

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Publication type: news

Witkowski W.
Sector Snap: Antipsychotic Drugmakers
Yahoo Finance 2006 Dec 7
http://biz.yahoo.com/ap/061207/antipsychotics_sector_snap.html?.v=1

Abstract:

Antipsychotic Drugmakers in Spotlight As Treatments in Development Show Promise

NEW YORK (AP) — Antipsychotic medications garnered attention this week as new drugs gained high marks in clinical studies, and Eli Lilly & Co. reassured Wall Street that sales of its best-selling medication Zyprexa have finally stabilized following last year’s slide.
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Shares of Vanda Pharmaceuticals Inc. soared to a new 52-week high after the Rockville, Md.-based biotech drug maker reported early Thursday its schizophrenia treatment, iloperidone, was effective in a late-stage clinical trial.

Vanda shares jumped $10.95, or 70.7 percent, to $26.45 in afternoon trading on 28 times their average volume. Shares, which reached a new year-high of $28.67 earlier in the session, had traded between $7.21 and $17 over the past 52 weeks.

The four-week trial followed 604 patients, with those given iloperidone scoring significantly better on a symptom scale. The company plans to file a marketing application with the Food and Drug Administration in late 2007.

Schizophrenia is a serious mental condition characterized by distorted or disorganized thinking, hallucinations, and a reduced ability to feel normal emotions.

Vanda acquired rights to the drug from Novartis AG, who licensed the drug from Titan Pharmaceuticals Inc. Shares of South San Francisco, Calif.-based Titan surged $1.45, or 61.2 percent, to $3.82 on the American Stock Exchange on 33 times their average volume.

Antipsychotic medications represent a more than $15 billion market worldwide.

On Wednesday, drug makers Wyeth, Solvay Pharmaceuticals Inc. and Lundbeck AS said studies of their schizophrenia treatment bifeprunox showed patients not only scored better on symptom tests, but also battled the common side effect of weight gain.

One study showed that patients taking bifeprunox lost an average of 1.8 pounds over six weeks, while those given a placebo lost an average of 0.2 pounds. While not directly comparable, the companies noted that small subgroups of patients given current antipsychotic drugs — to validate the study’s placebo — gained an average of 3.7 pounds to 5.3 pounds after six weeks.

Antipsychotic drugs have struggled against a government study showing that most modern brand-name antipsychotics perform no better than a generic drug used to treat symptoms in the 1950s. The one exception was Lilly’s Zyprexa, which was shown to perform slightly better, but was also the leader in patient weight gain. Sales of the drug took a hit last year after Lilly agreed to pay a nearly $700 million settlement to settle liability lawsuits claiming the company did not sufficiently warn of the drug’s diabetes risk.

Lilly on Thursday said Zyprexa sales have stabilized, with the most recent quarter booking $1.08 billion in sales, representing about 28 percent of total quarterly revenue of $3.86 billion.

Bristol Myers-Squibb Co. also reported Thursday its antipsychotic drug, Abilify, delayed relapses in adults with Bipolar I Disorder for up to two years. Bipolar I Disorder, formerly called manic-depressive illness, is a lifelong condition characterized by extreme mood swings. Abilify was discovered by Otsuka Pharmaceutical Co., Bristol Myers’ marketing partner.