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Theravance Tumbles after Key Drug Fails in Trials

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Theravance Inc. shares (NASDAQ: THRX) are plunging over 31 percent in morning trade after a key drug failed to produce the desired results. The maker of drugs that treat bacterial and respiratory disorders fell after an experimental drug it shares with GlaxoSmithKline (NYSE: GSK) failed to better results of an already existing GlaxoSmithKline drug.

Theravance, said in a statement today that Relovair, its drug for asthma and chronic obstructive pulmonary disease, proved no better than Glaxo’s Seretide in a clinical trial. Separately the two companies said Glaxo is also investigating reports of fatal pneumonia from Relovair.

Relovair was expected to be a blockbuster drug for GlaxoSmithKline. Analysts had estimated sales of the drug to cross $1.5 billion by 2017. Relovair was expected to be a “significant driver” of earnings for London-based Glaxo, making the results a disappointment, said Luisa Hector, an analyst with Credit Suisse Group AG, in a note to clients.


Glaxo said that it will seek approval of the drug for use against chronic obstructive pulmonary disease in Europe and the U.S. by midyear. For asthma, Glaxo will submit an application in Europe in mid-2012, and will continue discussions with the Food and Drug Administration on requirements for a U.S. filing, the drugmaker said.

Darrell Baker, SVP Respiratory Portfolio Optimisation Leader at GSK said: “We are pleased to have reached this milestone for Relovair(TM), one of the important assets in our respiratory development portfolio. Having undertaken an initial assessment of these data we believe they support our plan to seek global approvals of this once-daily medicine for the treatment of patients with COPD and asthma.”

Rick E Winningham, Chief Executive Officer of Theravance said: “We are very excited with the new data and GSK’s plan to submit regulatory applications for Relovair(TM) in the US and Europe this year. Relovair(TM) is one of our three respiratory programs with GSK.”

 

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edliston
Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.


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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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