Lundbeck and Solvay fall on news of drug delay

The Danish firm Lundbeck and Belgian Solvay found their shares tumbling after they released news that European approval of bifeprunox would be delayed.

The companies said that further clinical trials of the schizophrenia treatment were required, and that an application for registration in the EU would likely not be made until the completion of phase III trials in 2008.

Shares in both companies took a hit after the announcement. Sovay shares fell by eight per cent early Tuesday morning to 94.60, whilst Lundbeck stocks decreased by 7.4 per cent to 126.75 Danish Kroner.

“Solvay and Lundbeck have established an effective and rewarding co-operation on this project, and have mutually agreed the way forward and the new European registration plan,” Solvay said in a statement.

Solvay said that it is still pursuing a 2006 filing with the Food and Drug Administration (FDA) in the US with its American partner Wyeth Pharmaceuticals.

The companies claim that the drug has been produces “significant antipsychotic activity” and is well-tolerated. Bifreprunox will be suitable for bipolar disorder sufferers as well as schizophrenics.

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