AstraZeneca setback as firm drops development of experimental drug

Pharmaceuticals giant AstraZeneca yesterday revealed its second drugs blow in a week as it said it had dropped development of one of its experimental treatments.
By The Newsroom
Published 21st Dec 2010, 20:20 BST
Updated 21st Dec 2010, 20:20 BST

The group said its motavizumab drug to prevent serious lung disease in infants had been discontinued, leading to a 287.2m accounting charge.

The news follows Astra's disappointment last week over a further delay in winning approval from US regulators for its heart medicine Brilinta.

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The US Food and Drug Administration (FDA) wanted further analysis of research into Brilinta – a blood-thinning pill – before clearing the drug for sale.

Shares slumped on the day as hopes are running high for the treatment, which has already been approved in Europe and is designed to rival blockbuster Plavix, the world's second biggest selling drug.

But Astra has confirmed the fourth quarter financial hit would not impact core earnings. Its decision to pull development of motavizumab has not come as a surprise to analysts after the drug hit troubles with the FDA in America.

A US medical advisory panel cited concerns last June over potentially serious side effects, while the FDA added to delays by issuing a second so-called complete response letter this August.

However, Astra confirmed motavizumab remains in development for other serious respiratory syncytial virus (RSV) treatment.

Related topics:AstraZenecaEurope