Wednesday, June 27, 2012

Diet Drug Wins FDA's Approval


The Food and Drug Administration Wednesday approved a new weight-loss drug made by Arena Pharmaceuticals Inc., ARNA +28.70%marking the first new drug treatment in more than a decade.

The drug, lorcaserin, will be marketed under the brand name Belviq and distributed by Eisai Co. Ltd. 4523.TO +0.90%The approval comes more than a month after an FDA advisory panel voted to back the use of the product. The approval of Belviq and other anti-obesity drugs has been held up for several years amid potential safety concerns that included heart-valve disease and in some cases cancer.
Another small drug developer, Vivus Inc., VVUS +7.35%is hoping to win FDA approval for its weight-loss drug Qnexa by mid-July.

The FDA said Belviq is meant to be used as part of an overall weight-management plan that includes a reduced calorie diet and exercise. More than two-thirds of Americans are overweight and one-third are considered obese. This raises the risk of developing heart disease, diabetes and cancer.

Shares of Arena, which had been halted pending the announcement, surged 29%, or $2.54, to $11.39 at 4 p.m. on the Nasdaq Stock Market following the FDA's decision. The drug would be the first commercial product for the San Diego company, which was founded in 1997 and has been unprofitable.

However, Belviq won't immediately be available for sale. The drug has to go through a four-to-six month process at the Drug Enforcement Administration for a scheduling classification used for drugs that have a likelihood or potential of being abused. Once that process is over, Eisai will announce pricing and when the drug will be available.

Analysts have been cautious in their estimates for Belviq's annual sales, and they generally expect Qnexa, if approved, to grab a larger share of the market. However, the potential market size is worth billions of dollars, and Belviq is expected to be used alone and in combination with drugs like Qnexa, assuming they are approved. Studies of Qnexa showed many patients could lose 10% or more of their body weight.

The FDA said clinical studies of Belviq showed it was associated with an average weight loss of 3% to 3.7% lasting up to one year, compared with patients receiving a placebo medication. However, another study looking at patients with diabetes showed many of them were able to lose at least 5% of their body weight.

The drug is designed to activate a receptor called serotonin 2c in the brain, which may help a person eat less and feel full after eating.

The FDA said Belviq should be stopped in patients who fail to lose 5% of their body weight after 12 weeks of treatment because they are unlikely to "achieve clinically meaningful weight loss." The drug was approved to treat people who are obese, which is defined as a body mass index of 30 or higher, and people who are overweight, with a BMI of 27 or higher, and who also have at least one weight-related problem like high-blood pressure, high cholesterol or diabetes. BMI is a measure of body fat that uses height and weight in the calculation.

The development of obesity compounds has been a tough area for companies since the fen-phen drug combination was taken off the U.S. market in 1997, after one of the medication's components was linked to heart-valve damage. Abbott Laboratories ABT +0.83%removed its weight-loss drug Meridia from the U.S. market in 2010 amid concerns about the drug's risk of side effects like heart attack and stroke.

Arena will be required to conduct a long-term cardiovascular-outcomes study to access the risks of heart attacks and strokes, in addition to five other post-marketing studies, the FDA said.

Earlier this year an FDA advisory panel voted to back Qnexa, but in April the FDA delayed a decision until July 17. The agency is requiring another antiobesity drug, Contrave, from Orexigen Therapeutics Inc., OREX +20.29%to undergo testing in a cardiovascular-outcomes study before the FDA will consider approving the drug. Orexigen said earlier this month that it has started enrolling patients in that study  

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