Coreg CR study knocks a quarter off Flamelís shares

Shares in French drug delivery company Flamel Technologies fell by a quarter at the end of last week after a study of its daily controlled-release heart disease drug, Coreg CR, failed demonstrate augmented efficacy when compared with an existing twice-daily treatment, Coreg IR.

The results of the study were published in the Journal of Cardiac Failure.

As a result, Flamelís shares dropped a massive 24.6 per cent (USD 3.12) to settle at USD 9.56. The stock reached a 52-week low of USD 8.96 during the regular trading session.

Coreg IR is sold by GlaxoSmithKline (GSK) in the US, but it is currently experiencing generic competition from Israeli-headquartered Teva and US-based Mylan. Coreg CR was approved by the FDA in October 2006.

Merriman Curhan Ford analysts believe that formulary adoption of Coreg CR will be hindered in the near-term, limiting potential growth of prescriptions. They reaffirmed a "Neutral" rating to Flamel.

Flamel Technologies manufactures Coreg microparticles for GSK under a license agreement. Flamel's drug delivery technology is designed to control absorption of Coreg in the body.