Alzheimer's Drug Deemed Safe

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The ravages of Alzheimer's disease may soon face a new pharmaceutical foe.

On Wednesday, an FDA panel voted in favor of the safety of Forest Laboratories' (NYSE: FRX) new Alzheimer's drug. This is basically a recommendation to approve the drug, and that's good news for Forest and anyone who was on pins and needles after Tuesday's news that the panel was mixed on the medication's effectiveness.

The drug, known by the generic name memantine, will be branded under the moniker Namenda, if (and, given Wednesday's vote, it's more likely when) it is approved by the regulatory body.

There are already several medications on the market for Alzheimer's, including Pfizer's (NYSE: PFE) Aricept, Novartis' (NYSE: NVS) Exelon, and Shire (Nasdaq: SHPGY) and Johnson & Johnson's (NYSE: JNJ) Reminyl.

However, what distinguishes Namenda from the rest of the pack is that it is specifically for people who suffer from moderate to severe Alzheimer's (and two of the main studies showed it effective in that regard, with a third "less than convincing," according to Reuters, as some of the patients may have had other forms of dementia). Rival medications are for mild to moderate forms of the mentally debilitating disease.

The Alzheimer's Association forecasts that by 2010 more than 5.5 million Americans will have the disease. Namenda could represent hope for people who have more severe forms of the dementia associated with Alzheimer's.

Namenda also represents a certain degree of hope for Forest, which faces the loss of its patent on its antidepressant Celexa next year. The possibility of selling a drug like Namenda that is the only one indicated for a specific subset of disease sufferers is a good way to offset generic competition in other areas.

In addition, Forest issued an earnings warning in July, citing a slowdown in total prescriptions of the class of antidepressants known as selective serotonin uptake inhibitors, such as Celexa and another Forest drug, Lexapro. It's yet another good reason to cheer on the approval of a drug that should be a strong contender in treating a different disease.

You can reach Alyce Lomax at alycelomax@yahoo.com .