EMA advisory panel backs Bayer's Xarelto for AF-related stroke prevention and DVT

There was more good news for Bayer HealthCare, the pharma unit of Germany’s Bayer AG (BAY: DE), when the European Committee for Medicinal Products for Human Use (CHMP) on Friday recommended its oral anticoagulant Xarelto (rivaroxaban) for both the prevention of stroke and systemic embolism in adult patients with non-valvular atrial fibrillation (AF), as well as for the treatment of deep vein thrombosis (DVT) and prevention of recurrent DVT and pulmonary embolism (PE) following an acute DVT in adults.

Bayer saw the biggest one-day rise in its share price on Friday, with the stock leaping 7.1% to 39.42 euros in Frankfurt trading, on hopes for this warfarin-replacement product, which has been projected to have a sales potential of over 2.2 billion euros ($2.97 billion) with additional indication.

Xarelto, which is approved and marketed for use in knee- and hip-surgery patients, which is a much smaller market. Nevertheless, Xarelto will still face strong competition form already approved Pradaxa (dabigatran) from fellow German drug major Boehringer Ingelheim and US drugmaker Bristol-Myers Squibb’s Eliquis (apixaban). Blood thinners in the stroke prevention indication are estimated to have a market potential of around $14 billion by 2017.