UPDATE 2-Lundbeck gets boost from drug trial success
(Adds chief executive, analyst comment, updates share)
COPENHAGEN, Oct 2 (Reuters) - Denmark's Lundbeck (LUN.CO) unveiled positive results on Tuesday from clinical trials of one of its candidate drugs, saying it could become the firm's next flagship product, sending its shares up 8 percent.
The outcome of the Phase II clinical study of Lu AA21004 compound, to treat major depressive disorders, boosts growth prospects at a firm hard-hit by two late-stage drug development failures this year.
"This is very, very important for us. We have been working on this project for more than five years and this is the moment of truth," Lundbeck Chief Executive Claus Braestrup told Reuters.
Lundbeck generates the majority of its revenues from depression and anxiety treatment Lexapro, sold outside the United States as Cipralex, but the patents for the drug expire in 2012-2014.
"Looking at what we know today, this has the potential to be a medication used at least as much as Cipralex," Braestrup said.
The firm, which has said the Lu AA21004 compound could reach markets as a fully fledged medication in 2011, will begin Phase III trials of the compound in a matter of months, he added.
The trial included 426 patients with major depression.
"Lu AA21004 showed highly significant improvements on the primary efficacy endpoints with both 5 and 10 mg compared to placebo and had an attractive safety profile," the firm said in a statement.
By 1335 GMT, Lundbeck shares were 8 percent higher 154.50 crowns, outperforming the Copenhagen bourse's top-20 OMX index , which had gained 0.7 percent on the day.
"It is vital that they show some good data. Had that not been the case, there would have been precious little in their pipeline," Jyske Bank analyst Peter Andersen said.
"This product is the next share price trigger for Lundbeck. It is crucial that Lundbeck is finally gaining some momentum considering all the headwind they have had."
STILL RISKS
Lu AA21004 is being jointly developed by Lundbeck and Takeda Pharmaceutical Company (4502.T). Continued...
