UPDATE 1-Albany Molecular says Bristol-Myers stops developing depression drug
* Says Bristol-Myers stopped two mid-stage studies of the drug
* To discuss future plans for the drug with Bristol-Myers- CEO
* Albany says third-quarter and full-year outlook not affected
* Shares fall as much as 22 pct (Adds details, background, CEO comment)
By Vrinda Manocha
Aug 12 (Reuters) - Drug developer Albany Molecular Research Inc said partner Bristol-Myers Squibb Co would stop developing its experimental drug to treat depression, sending Albany's shares down as much as 22 percent.
Albany said Bristol-Myers stopped two mid-stage studies of the drug after it failed to show superiority over two other antidepressants. (link.reuters.com/fax32v)
The drug, codenamed BMS-820836, is targeted at Treatment Resistant Depression (TRD), a condition in which patients fail to respond to approved antidepressants.
New York-based Albany Molecular entered into the license agreement with the pharmaceutical giant in 2005, allowing Bristol-Myers to develop and market products using Albany's technology to treat depression and other disorders of the central nervous system.
Bristol-Myers identified four compounds under the agreement and BMS-820836 was the furthest along in development, Albany Chief Executive Thomas D'Ambra told Reuters.
As of Dec. 31, Albany had received $15.5 million as a part of the deal, according to a regulatory statement filed on March 18.
"We expect to have further discussions at some future date to decide about their plans for this compound or any other compound," D'Ambra said, adding that Bristol-Myers' decision was taken recently.
The company said the decision would not have an impact on its forecasts for the third quarter and 2013.
Albany reported second-quarter revenue of $59.3 million last week and forecast third-quarter revenue of $51 to $53 million.
Shares of the company were down 14 percent at $10.80 in the afternoon on the Nasdaq. (Reporting by Pallavi Ail and Vrinda Manocha in Bangalore; Editing by Saumyadeb Chakrabarty and Sreejiraj Eluvangal)