AstraZeneca ends deal on MAP Pharma's asthma drug

BANGALORE (Reuters) - MAP Pharmaceuticals (MAPP.O) said it plans to suspend development of its experimental paediatric asthma drug, after its licensing partner AstraZeneca (AZN.L) terminated a collaboration on the drug.

The drug, Unit Dose Budesonide, had earlier this year failed to meet the main goals of a late-stage trial in children aged one year to eight years with mild asthma.

"The drug is essentially dead," Wedbush Morgan Securities analyst Liana Moussatos said, adding that the news was not that big a hit to the company given the recent promising results from its migraine drug trial.

MAP said it received the termination notice from AstraZeneca reverting all rights to MAP, on Wednesday.

"It is not an issue that the drug does not work, but rather an issue with the study that did not achieve statistically significant outcomes," MAP's Chief Financial Officer Christopher Chai said.

Chief Executive Timothy Nelson said, "MAP Pharmaceuticals is considering options for its paediatric asthma program moving forward, including the development of a next-generation therapy with budesonide."

The company also said it would currently focus on developing its experimental orally inhaled migraine drug Levadex, which recently met all four goals of a late-stage study.

MAP, which has been looking for a partner for the migraine drug, did not comment on the expected timeline of the migraine drug or whether the company was in partnership discussions with any company.

"I can't comment on any specific talks, but I can say that there is strong interest in the product from people in the migraine area," CFO Chai said.

U.S. health regulators have asked the company to run a second trial of the migraine drug to confirm the results of the study.

More than 29.5 million Americans suffer from migraines, an extremely painful and often throbbing type of headache, according to the National Headache Foundation.

Chai said the company wants a partner who would help it fund the development of the product and take it to patients.

Wedbush's Moussatos said she anticipates a partnership for Levadex in the next six to nine months which is likely to provide non-dilutive financing.

Shares of MAP were down 4 percent at $10.61 in afternoon trade on Nasdaq. They had touched a low of $9.28 earlier in the session.

(Editing by Anil D'Silva, Vinu Pilakkott)