Biotech Values

[DewDiligence]

Look for Lundbeck to do some deals…

http://www.reuters.com/article/marketsNews/idINL3014516520080630

›Myriad, Lundbeck Alzheimer's drug fails key study

Mon Jun 30, 2008 4:15am EDT
By Gelu Sulugiuc

COPENHAGEN, June 30 (Reuters) - Flurizan, an experimental drug for Alzheimer's disease, failed to help patients in a pivotal clinical test, dealing a blow to its backers Myriad Genetics and Lundbeck (LUN.CO).

Danish pharmaceutical group Lundbeck said on Monday it would take a $100 million writedown in the second quarter following the Phase III test setback, as its shares fell 10 percent.

…"The data is disappointing and it means that Lundbeck has wasted half a billion Danish crowns on this project," said Jyske Bank analyst Frank Andersen.

Lundbeck bought the European rights for the Myriad drug last month for $100 million, hoping it would replace some of the revenue shortfall when blockbuster antidepressant Cipralex/Lexapro loses its patent in major markets in 2012-2014.

OTHER DEALS

Lundbeck Chief Executive Ulf Wiinberg said he would continue to search for other licensing deals within the central nervous system field. "Our pipeline is not enough to offset the 2012-2014 challenge," he told reporters. "We are looking at any deal that has scientific merit to meet patients' needs in the market."

The company's chief financial officer, Anders Gotzsche, said Lundbeck would have 4 billion Danish crowns ($847 million) of cash in hand by the end of the year, giving it considerable firepower for doing deals.

"We have enough resources to back up potential in-licensing or acquisitions we are looking into," he said.‹