Sanofi-Aventis SA shares had their biggest drop in three years, wiping out more than $7 billion in market value, after a U.S. panel blocked the company’s new weight-loss pill because it was linked to suicides.
Says Derek Lowe:
Everyone will have heard the news about Wednesday’s FDA Advisory Commitee vote on Accomplia / Zimulti (rimonabant). If you’d tried to convince folks a few years ago that this drug wouldn’t make it to a vote until summer of 2007, and would be unanimously rejected when it did, you’d have been looked at with pity and concern. No, this drug was going to conquer the world, and now people are talking merger-of-desperation.
By the way:
FDA approval of Zimulti was expected to boost Sanofi-aventis’ stock by five percent. The drug was expected to generate as much as $2 billion in revenues by 2010.
I have a sneaking suspicion that before the recent FDA scandals, this drug may well have been approved.