AstraZeneca drops early-stage obesity drug; Roche loses out on Indian Tarceva dispute

Anglo-Swedish drug major AstraZeneca (LSE: AZN) has told its development partner Palatin Technologies (NYSE PTN) that it has decided to discontinue further development of AZD2820, one of a number of collaboration compounds in various stages of development for the treatment of obesity.

The compound is part of a 2007 $300 million licensing deal between the two companies that was expanded a year later (The Pharma Letter July 7, 2008). AstraZeneca has said it remains committed to this collaboration program and to the continued advancement of melanocortin agonists for treatment of obesity.

A Phase I trial of AZD2820 was halted following a serious adverse event. The decision to discontinue development of the compound was made based on investigations and review conducted by AstraZeneca that followed this incident. While not confirmed, it could not be excluded that the serious adverse event was linked to AZD2820. The investigation further concluded that it is unlikely that the serious adverse event was related to melanocortin receptor activation as an approach for the treatment of obesity.