Lundbeck shares dented by lackluster depression data

Shares of Lundbeck took a bad hit this morning after the Copenhagen-based developer revealed that its experimental depression drug LuAA21004 failed to beat out a placebo at a low dose. Researchers for Lundbeck, which is advancing the drug in partnership with Takeda, say they now have to identify an ideal dose of the drug, delaying any NDA by 18 to 24 months and raising some intense anxiety among investors fearing the looming loss of patent protection for its blockbuster drug Lexapro. Shares slid 13 percent this morning on the news. That came as no surprise to analyst Lars Hatholt at Nordea, who told Dow Jones that LuAA21004 is a strategically important drug for Lundbeck. Lexapro patents expire in 2012 and 2014 and that drug provides two thirds of Lundbeck's annual revenue.

- read the report from Dow Jones

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