Read Larry Connors' blog – Short Term Trading Strategies
MAP Pharmaceuticals has announced that its Phase III trial of Unit Dose Budesonide (UDB) in children with asthma did not meet its primary endpoint of disease control. In the study, 360 steroid-naive children with asthma were randomized to receive 0.25mg UDB, 0.135mg UDB or placebo twice a day over a 12 week period. An initial review of the data has not identified any serious adverse events, and patients will therefore continue to be treated in a 52 week safety study.
AstraZeneca currently markets Pulmicort Respules (budesonide), the only nebulized steroid available for the treatment of asthma in children, reaching sales of over $600m in the US in 2007. As such, UDB was expected to seriously threaten Pulmicort Respules's revenues. To negate these concerns, AstraZeneca signed an agreement with MAP Pharmaceuticals in December 2008 to jointly develop and commercialize the compound.
The expiration of the waiting period for this agreement under the Hart-Scott-Rodino Act triggered an up-front payment to MAP Pharmaceuticals of $40m on February 3, 2009. However, the additional $35m that AstraZeneca was supposed to pay upon the successful achievement of the Phase III primary endpoint is now unlikely to be handed over.
Theoretical advantages of UDB over Pulmicort Respules include a shorter nebulization time and the administration of lower doses, although the doses studied evidently did not lead to asthma control. Both companies are currently conducting further analyses of the full Phase III data to determine appropriate next steps. For AstraZeneca, the successful launch of UDB would not have entirely protected its nebulized budesonide franchise, which is also under generic threat. However, it would have at least kept the company in the game. For MAP Pharmaceuticals, given that shares fell by 40% in after-hours trading, the results could lead to more serious problems.
http://www.datamonitor.com
Republication or redistribution, including by framing or similar means, is expressly prohibited without prior written consent. Datamonitor shall not be liable for errors or delays in the content, or for any actions taken in reliance thereon
More News:
Market Updates |
Stock Alerts |
All Trading News |
Stock Index
About TradingMarkets | Contact | Advertise | Careers | Link to Us | Site Map | Help | Terms & Conditions | Privacy Policy | Return Policy | Testimonials | Feedback
The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
The Connors Group, Inc.
10 Exchange Place, Suite 1800
Jersey City, NJ 07302
© Copyright 2009 The Connors Group, Inc.
