Yesterday, a Food and Drug Administration advisory panel voted that Seroquel had too many side effects to justify the use of the drug as a first choice to treat anxiety and split on whether it should be used as a first choice to treat depression. The difference is likely due to the severity of the disorders -- the reality that depression is more severe than anxiety probably swayed a few panel members to recommend the drug despite the side effects.
The experts on the panel were a little more lenient when it came to using the drug as a second-line treatment in patients that aren't responding to other depression treatments, such as Pfizer's
How the FDA will handle side effects of a drug is a difficult factor for investors to estimate, because it's fairly subjective, and a lot of factors -- such as how well the drug works compared to its competitors -- need to be considered. For instance, yesterday, Genentech, recently acquired by Roche, started pulling Raptiva from the market because three patients taking the drug have come down with a rare brain infection called progressive multifocal leukoencephalopathy (PML). Two have died. Raptiva treats psoriasis, and there are other treatments on the market, so the potential side effect isn't worth the benefit.
In contrast, Biogen Idec
We will have to wait for final word from the FDA, but it looks as if Seroquel might get a slightly expanded label -- just not as broad as AstraZeneca wanted.
Side effects of Foolishness may include education, amusement, and enrichment:
GlaxoSmithKline is a Motley Fool Income Investor pick. Pfizer is a Inside Value recommendation. Elan is a Rule Breakers selection. Biogen Idec is a Stock Advisor pick. Try any of our Foolish newsletters today, free for 30 days.