2 Keys to Success for This Diabetes Drug's Second Chancehttp://www.fool.com/investing/general/2013/07/29/2-keys-to-success-for-this-diabetes-drugs-second-c.aspx Keith Speights
July 29, 2013
If at first you don't succeed, try, try again. We've heard that old saw many times, but it's good advice. It's also advice that two big pharmaceutical companies are heeding.
AstraZeneca (NYSE: AZN) and Bristol-Myers Squibb (NYSE: BMY) announced last week that they are making another attempt at U.S. regulatory approval for diabetes drug Forxiga. Will the two drugmakers be successful this time around? Here are two keys for Forxiga to emerge as a winner.
1. The data must deliver.
AstraZeneca and Bristol-Myers Squibb provided lots of new data with the resubmission. The companies announced that data was given to the FDA for several new clinical studies plus additional long-term data for up to a four-year period from studies submitted in the earlier application. This additional data increased the number of patient-years exposure to Forxiga by 50%.
A decision date for Forxiga has been set for Jan. 11, 2014. FDA approval now hinges on how convincing this new data actually is.
2. The market must make room.
Johnson & Johnson (NYSE: JNJ) obtained FDA approval in March for Invokana. Like Forxiga, the drug is a sodium glucose co-transporter 2, or SGLT2 inhibitor. SGLT2 inhibitors work by increasing the amount of glucose expelled in urine.
While J&J scored first with U.S. approval, the company is still seeking regulatory approval in Europe. AstraZeneca and Bristol already obtained European marketing authorization for Forxiga last November. It could be only a matter of time before Forxiga and Invokana go head-to-head in both markets, but they will probably face other competitors not too far down the road.
Eli Lilly (NYSE: LLY) and Boehringer Ingelheim submitted a New Drug Application, or NDA, for empagliflozin in March. This head start should enable the two companies to beat AstraZeneca and Bristol to the American market. Lilly and Boehringer also filed for regulatory approval in Europe.<