AI
Friday, January 28, 2011 5:00:18 PM
DEPO..$6.24.. My reason for believing that DM-1796 will get approved was from the last press releases. The Depomed CEO makes a case for approval when he hints to the fact that the FDA believed that DM-1796 served an unmet need in PHN and thus gave them orphan drug status. Why give orphan drug status to a drug this late in the game (November 2010) if you don't intend to approve DM-1796. Add to the fact that Abbott is arguing the fact that they don't believe they are obligated to launch and commercialize DM-1796. This could have occurred after the FDA decision but it would have been a non-issue if Abbott was not sure or thought that DM-1796 would not be approved. Abbott, a huge pharma company, made this a public issue with a small biotech company.
Carl Pelzel, Depomed's President and CEO, said, "We believe DM-1796 meets an important need for sufferers of PHN, as evidenced by the FDA's decision to grant DM-1796 Orphan Drug status on the basis of its side effect profile. We at Depomed want to ensure that this important therapy is available to patients as soon as possible following FDA approval, which could occur on the upcoming January 30 PDUFA date.
http://investor.depomedinc.com/phoenix.zhtml?c=97276&p=irol-newsArticle&ID=1516964&highlight=
My other thought is that maybe Abbott did not think it was worth training and fielding a sales team only to sell in the U.S., Canada, and Mexico for the treatment of pain. What about China or other emerging markets. Could Abbott have seen an even greater opportunity with this drug especially for the royalties they were going to be paying Depomed for DM-1796?
The issue was with launch & commercialization and not disposing of DM-1796 in my opinion. Abbott never made that point clear so that is my opinion. It makes me believe that they wanted greater control over DM-1796 in other markets so it was a more profitable venture for them in training a sales force and adding to their bottom line. We will see this weekend as the speculation will end soon.
Carl Pelzel, Depomed's President and CEO, said, "We believe DM-1796 meets an important need for sufferers of PHN, as evidenced by the FDA's decision to grant DM-1796 Orphan Drug status on the basis of its side effect profile. We at Depomed want to ensure that this important therapy is available to patients as soon as possible following FDA approval, which could occur on the upcoming January 30 PDUFA date.
http://investor.depomedinc.com/phoenix.zhtml?c=97276&p=irol-newsArticle&ID=1516964&highlight=
My other thought is that maybe Abbott did not think it was worth training and fielding a sales team only to sell in the U.S., Canada, and Mexico for the treatment of pain. What about China or other emerging markets. Could Abbott have seen an even greater opportunity with this drug especially for the royalties they were going to be paying Depomed for DM-1796?
The issue was with launch & commercialization and not disposing of DM-1796 in my opinion. Abbott never made that point clear so that is my opinion. It makes me believe that they wanted greater control over DM-1796 in other markets so it was a more profitable venture for them in training a sales force and adding to their bottom line. We will see this weekend as the speculation will end soon.
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