Pharmacopeia Drug Discovery, Inc. (PCOP)

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Investors Aplenty For Pharmacopeia

Pharmacopeia is good for its shareholders' blood pressure in two ways: Its stock jumped Friday on a report that its primary drug under development, a blood-pressure treatment, is exhibiting better benefits than competing medicines now on the market.

Shares of the Princeton, N.J.-based company jumped 27.1%, or 86 cents, to close at $4.04 on Friday.

The drug that was making investors flock to the stock was PS433540, a compound being researched for the treatment of high blood pressure and diabetic kidney disease. Mid-stage drug trials testing the drugs effectiveness against a placebo showed that it significantly reduced mean 24-hour systolic ambulatory blood pressure, mean 24-hour diastolic ambulatory blood pressure, as well as seated blood pressure. Side effects from the drug were indistinguishable from those of the placebo.

PS433540 is unique from treatments currently on the market because it includes two different approaches to treating hypertension in one molecule. "For us, what was exciting was that the hypothesis was that this chemical would have the potential to be more effective than any monotherapy, and indeed, that's what the data showed us," said Eric Liebler, executive vice president of corporate development for Pharmacopeia (nasdaq: PCOP - news - people ).

The study treated 93 people with hypertension with the drug or the placebo and measured their blood pressure every 20 minutes for 24 hour periods. PS433540 decreased the seated blood pressure levels by 17/11 millimeters of mercury. Current drugs on the market only achieve drops of 10/11 millimeters of mercury. Normal blood pressure levels for a healthy person are 120/80 millimeters of mercury. "This could allow a higher percentage of patients to get their blood pressure under control even using a monotherapy," said Conaccord Adams analyst Joseph Pantginis.

Pharmacopeia has already begun a new set of drug trials testing the efficacy and safety of the drug at different doses. It hopes to have the data from those studies at the end of the year. The company bought the original drug compound from Bristol-Myers Squibb before beginning research.

"This is the primary value driver for the company," said Conaccord Adams analyst Joseph Pantginis. "You look at the market potential of this drug after today's data and you realize this could be something special."

"There is a lot of interest from large pharmaceutical companies in novel products," said Liebler. "We've had a lot of interest previously on a scientific front and expect that to increase now that we have proof of concept in patients. Clearly, we would be open to considering a partnership that would allow for the broadest possible development of the program, but we would hope to stay involve in the product so that our shareholders could benefit from the product's success."
http://www.forbes.com/2008/05/16/pharmacopeia-hypertension-closer-markets-equity-cx_lal_0516markets32.html?partner=yahootix