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UPDATE 1-Lundbeck buys alcoholism drug rights in UK, Ireland

Wed Jan 2, 2008 8:44am EST

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(Adds details, BioTie quotes, share prices)

COPENHAGEN/HELSINKI, Jan 2 (Reuters) - Danish pharmaceutical group Lundbeck (LUN.CO) has acquired the UK and Ireland rights for alcoholism drug nalmefene from Britannia Pharmaceuticals, a unit of Germany's STADA Arzneimittel AG (STAGn.DE).

The drug was developed by Finnish biotechnology company BioTie Therapies Corp (BTH1V.HE), which has been selling the rights to it country by country.

Shares in BioTie were up 16 percent at 88 cents by 1323 GMT, while Lundbeck was down 1.5 percent at 136 crowns and Stada was up 0.5 percent at 42.24 euros.

Lundbeck now owns worldwide rights to the drug excluding North America, Mexico, Turkey and South Korea. It plans to conduct additional Phase III studies with nalmefene this year before applying for marketing authorisation in the European Union.

BioTie has already conducted two Phase III studies with the drug. "The larger study showed a positive and successful result that clearly reduced alcohol consumption and the number of heavy drinking days," said BioTie Chief Executive Timo Veromaa. He added that the smaller study did not yield statistically significant results.

Lundbeck currently generates the majority of its revenue from Cipralex, sold in the United States as Lexapro. Patents for the drug expire in 2012-2014 and the company is looking for new revenue sources.

Veromaa said the market for alcoholism drugs is dominated by medicines targeting those who have already quit drinking, while nalmefene is intended to help patients stop drinking. It is taken once a day for six months.

Under an agreement with Lundbeck, BioTie is eligible for up to 82 million euros ($120.2 million) in upfront and milestone payments.

Veromaa reiterated his prediction that BioTie would be profitable by 2010.

"I don't think we are that far behind on this target at all. We have the most comfortable feeling than ever before in the history of BioTie," he said, adding that the company's liquid assets at the end of the third quarter were 29.3 million euros.

(Reporting by Gelu Sulugiuc and Sami Torma; Editing by David Holmes)

((gelu.sulugiuc@reuters.com; +45 33 96 96 50; Reuters Messaging: gelu.sulugiuc.reuters.com@reuters.net))

($1=.6819 Euro) Keywords: LUNDBECK NALMEFENE/

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