Broker reviews Paion, beyond the stroke delay by partner Lundbeck

11 August 2011

Citing slow recruitment into its two Phase III studies, German biopharmaceutical company Paion’s (FSE: PA8) partner, Denmark-based Lundbeck (LUND: DC), has guided to a delay in the stroke project desmoteplase, which it says will now not be filed for US approval until the first half of 2014. The two companies extended their original 2005 agreement on desmoteplase last year, to include access to potential follow up products (The Pharma Letter October 18, 2010).

Commenting on the news, analysts at Edison Investment Research stated: “Given the very conservative probability of success we had applied to this project, the two-year delay has a relatively limited effect on Paion’s valuation, which falls from 96 million euros [$136.3 million] to 89 million euros. Licensing deals on remimazolam and/or M6G remain key to the investment case.”

Paion is a biopharmaceutical company specialising in the development of central nervous system (CNS) products. The company has five New Chemical Entities in its R&D portfolio, with the lead program, desmoteplase, partnered with Lundbeck.

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