> Cephalon shares were dented this morning after researchers announced that a late-stage trial of the epilepsy drug Gabitril failed to hit primary endpoints for generalized anxiety disorder. The company had hoped that it could gain an important new indication for the drug after seeing statistically significant results in a mid-stage trial completed in 2004. Sales of Gabitril have fallen recently. Report
> Callisto Pharmaceuticals is bypassing an early stage trial of a cancer therapy and starting a Phase II study for advanced carcinoid cancer, saying the therapy had already proven to be safe. Report
> The number of warning letters sent to companies by the FDA for drug, device and food law violations has dropped by half under the Bush administration, according to a senior Democratic lawmaker. Inspections have also fallen dramatically, says Rep. Henry Waxman, while the agency has rejected dozens of requests for tough regulatory responses from field agents in favor of much milder alerts about possible problems. Report
> Discovery Laboratories announced it had made significant progress in correcting manufacturing problems linked with Surfaxin, addressing a concern that the FDA had expressed earlier this year. Release
> Sosei and Mundipharma International have inked a development pact for the cancer pain therapy AD 923. Release
> The founder of ESP Pharma, Howard Weisman, has launched EKR Therapeutics. Release
> The New England Journal of Medicine has issued a correction to a study it ran last year on Vioxx, saying that the proper analysis of the data showed that the drug could be dangerous to patients after only three months of use, instead of the 18 months originally cited. The correction is considered a damaging reversal for Merck, which had relied on the analysis in its legal defense of the drug. Article
> Perrigo announced it will close two plants by the end of the year. Report
And Finally... A small study shows that some pregnant women can get chemotherapy during pregnancy. Article