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Research study finds Seroquel no better than older generic drug

–September 20, 2005

Growth prospects for AstraZeneca's schizophrenia drug Seroquel might be limited, based on results of a large clinical trial published in the New England Journal of Medicine.

The study found Seroquel and other newer treatments were no better than an older generic drug despite the higher cost associated to newer atypical anti-psychotics. Sales of Seroquel increased 37 percent to $1.3 billion in the first half of 2005.

Leading U.S. drug sales for atypical anti-psychotics, with a 31 percent share of new prescriptions, the latest study found Seroquel users also had the highest drop out rate, with 82 percent of patients discontinuing treatment within 18 months.

Compared to just 64 percent for patients on Eli Lilly and Co.'s Zyprexa, 74 percent for Johnson & Johnson's Risperdal, 79 percent for Pfizer Inc.'s Gedeon and 75 percent for older generic drug perphenazine, reports of the study, according to Rachna Upadhya, an analyst with Bear Stearns in London, could slowdown the atypical anti-psychotic market overall because doctors and health insurers could choose cheaper generics.

While some analysts believe the CATIE study could boost sales of Lilly's Zyprexa, others are not as sure because of the dramatic weight gain experienced by Zyprexa users, which is a significant negative effect. The CATIE study involved nearly 1,500 patients and was the largest, most comprehensive assessment of anti-psychotic medicines ever conducted.

AstraZeneca noted the study's findings were the first of many reports expected from the multi-phase study, and it continued to assert Seroquel's balance of efficacy and tolerability made the drug an ideal first-line treatment.

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