Merck & Co closes odanacatib trial early on good results in osteoporosis

US drug giant Merck & Co (NYSE: MRK) says it is halting a Phase III trial of its investigational osteoporosis drug odanacatib early on the recommendation of the independent Data Monitoring Committee due to robust efficacy and a favorable benefit-risk profile. The news pushed Merck’s shares up 2.9% in after-hours trading on Wednesday to $42.44, rising 4% to $42.90 in early trading yesterday, hitting a four-year high.

As a result, Merck will begin taking steps to close the trial. The DMC noted that safety issues remain in certain selected areas and made recommendations with respect to following up on them. Merck's previously announced plan to conduct a blinded extension trial will allow further monitoring of the issues. The extension trial will also continue to measure efficacy.

Some analysts hope that odanacatib could be the replacement for the company’s previous blockbuster osteoporosis drug, Fosamax (alendronate), which generated $3 billion in annual sales before its patent expired in 2008. Citi analysts have upped their annual sales forecast for odanacatib to $2 billion.