2nd UPDATE: SkyePharma Sees No Flutiform Approval Before 2011
September 01 2009 - 7:56AM
Dow Jones News
Pharmaceutical company SkyePharma PLC (SKP.LN) warned Tuesday
the launch of its asthma treatment Flutiform is likely to be
delayed by another year after U.S. regulators demanded more
research.
London-based SkyePharma received a letter from the U.S. Food and
Drug Administration in June, following its submission of Flutiform
for marketing approval. The company said at the time the letter
suggested further work might be required for Flutiform before the
FDA approves it for sale.
SkyePharma said Tuesday that a meeting has now been held with
the FDA and additional clinical work will be required to provide
more data on the effect of the drug at various doses.
SkyePharma had hoped Flutiform would go on sale in 2010 but
Tuesday said it is now unlikely the drug will be approved in the
U.S. before the second half of 2011.
Matrix Corporate Capital analyst Navid Malik said the FDA's
stance was not wholly surprising. Asthma treatments are a tough
area to gain approval, he said with "high hurdle rates" for safety.
"It's a pretty tough call," he said, "but there was always a risk
of delay."
The company had held talks about a submission as early as 2007
but had to perform an additional Phase III trial after the FDA
asked for more data then.
It doesn't look like another big trial will be required but the
latest delay is yet another frustration for investors, said Singer
Capital Markets analyst Shawn Manning.
At 1101 GMT, SkyePharma shares traded down 12 pence, or 11%
lower at 101 pence in a broadly weaker London market. The stock has
lost 42% of its value over the past three months.
Still, Manning said he reckons Flutiform could do brisk business
once it does get to market. Products similar to Flutiform generate
sales of about $29 billion a year, and Manning said he estimates
Flutiform could sell between $300 million and $400 million a
year.
However, other drug makers are working on newer products too,
notably Schering-Plough Corp. (SGP) and Novartis AG (NOVN.VX), and
aren't far from getting their regulatory submissions in.
When it does get to market, Flutiform might also have to compete
with cheaper generic versions of some of today's blockbuster asthma
drugs, like GlaxoSmithKline PLC's (GSK.LN) Advair.
The additional research required by the FDA is not expected to
have an impact on the Flutiform development in Europe or Japan,
Skyepharma added Tuesday.
Marketing partner Abbott Laboratories (ABT) is responsible for
paying for additional clinical or other trials required by the FDA,
and is entitled to recoup such costs once approval is granted.
Company Web site: www.SkyePharma.com
-By Michael Carolan, Dow Jones Newswires; 44-20-7842-9278;
michael.carolan@dowjones.com