* Says Bristol-Myers stopped two mid-stage studies of the
* To discuss future plans for the drug with Bristol-Myers-
* Albany says third-quarter and full-year outlook not
* Shares fall as much as 22 pct
(Adds details, background, CEO comment)
By Vrinda Manocha
Aug 12 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
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
"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
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)