Wyeth: Now Approved to Kill More Bugs!

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Antibiotic makers have had a brutal year in front of the Food and Drug Administration. Over the last year, the agency has turned down the marketing applications for Wyeth's (NYSE: WYE) Tygacil, Theravance's (Nasdaq: THRX) Telavancin, and two antibiotics from Johnson & Johnson (NYSE: JNJ) -- Doribax and ceftobiprole.

It's difficult to tell exactly, but it looks like a random coincidence rather than a true crackdown on a treatment area as the diabetes drugmakers are experiencing. For instance, Theravance needs a Risk Evaluation and Mitigation Strategy (REMS) for approval while the agency asked Johnson & Johnson to audit the data from the clinical trials for ceftobiprole.

But maybe the tides are changing. Yesterday the FDA gave a green light to Wyeth's Tygacil -- yes, the same one that was rejected earlier. The drug was already approved to kill the bugs causing complicated intra-abdominal infections (cIAI) and complicated skin and skin structure infections (cSSSI) in patients. Now the FDA just approved it to treat community-acquired bacterial pneumonia (CABP).

My goodness -- cIAI, cSSSI, CABP -- those infectious disease docs really know how to give catchy names to the diseases they treat.

Long thought of as a dead treatment area, antibiotics are making a comeback thanks to superbugs that have become resistant to available treatments. Last year Cubist Pharmaceuticals' (Nasdaq: CBST) Cubicin and ViroPharma's (Nasdaq: VPHM) Vancocin saw sales jump 45% and 14% year over year, respectively.

Wyeth's approval is a nice start to resurrecting the approval of antibiotics (AoA). Maybe with AoA, FDA will CYA. (Certify Your Antibiotic, of course.)

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Fool contributor Brian Orelli, Ph.D., doesn't own shares of any company mentioned in this article. Johnson & Johnson is an Income Investor selection. The Fool's disclosure policy has an infection, but it doesn't want to talk about it.

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  • Report this Comment On March 25, 2009, at 6:56 PM, bmialone wrote:

    I certainly hope we see an end to FDA approval for pharmaceuticals based on market profit desires.

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12/1/2009 4:00 PM
JNJ $63.51 Up +0.67 +1.07%
Johnson & Johnson CAPS Rating: *****
WYE $50.39 Down +0.00 +0.00%
Wyeth CAPS Rating: ***
CBST $17.13 Up +0.45 +2.70%
Cubist Pharmaceuti… CAPS Rating: ****
THRX $13.73 Up +0.57 +4.33%
Theravance, Inc. CAPS Rating: **
VPHM $7.75 Up +0.19 +2.51%
ViroPharma, Inc. CAPS Rating: *****

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