Disappointments as Actelion and GSK discontinue almorexant in sleep disorder and Sanofi's iniparib fails in Ph III

There was negative news from Swiss biotech firm Actelion (SIX: ATLN) and partner UK pharma giant GlaxoSmithKline (LSE: GSK) this morning relating to a potential insomnia drug candidate as they announced that clinical development of the Phase III investigational dual orexin receptor antagonist, almorexant, has been discontinued. This decision follows a review of data from additional clinical studies, which were conducted to further establish the clinical profile of almorexant, including the tolerability profile.

GSK and Actelion say they remain committed to conducting further research to better understand the potential of orexin receptor antagonism in sleep disorders and other indications. Both companies will continue to work on the discovery and development of new orexin receptor antagonist therapies, based on their alliance.

Actelion received an upfront payment of 150.0 million Swiss francs ($156.4 million) from GSK as part of an exclusive worldwide collaboration, excluding Japan, for almorexant. (The Pharma Letter July 21, 2008). Additional milestone payments could have brought in as much as 3.3 billion francs for the Swiss firm. Credit Suisse analysts’ PharmaValues worldwide net present value for almorexant was 1.60 francs/share or 2.6% of total NPV for Actelion and NPV of £0.02/share or 0.1% NPV for GSK.