Shares in Lundbeck plunged by 30 percent at the end of last week after the Danish pharma giant reported disappointing results for its new schizophrenia treatment.
The share-price fall followed the announcement late on Thursday, dropping from 398.9 to 283.1 kroner, before a slight rally on Friday saw it finish the week on 294.7.
High hopes turn to dust
Lundbeck had high hopes that its new drug, provisionally named Lu AF35700, would provide a treatment for schizophrenia superior to its current offerings Risperidone or Olanzapine, and analysts were predicting blockbuster sales.
But the disappointing results of the third phase tests – the final hurdle before a drug can seek health authority approval – have derailed those dreams, leaving Lundbeck facing an estimated loss of 4 billion dollars.
Hopeful about Parkinson’s treatment
The company will now pin its hopes on Foliglurax, a new treatment for Parkinson’s disease in its second phase of testing, along with an Alzheimer’s treatment currently in phase one.
Earlier this month, fellow Danish pharma goliath Novo Nordisk emerged as a rival when it announced its intention to produce treatments for neurodegenerative diseases such as Parkinson’s and Alzheimer’s – the first time it has ever encroached on Lundbeck’s territory.
READ MORE: Novo looks towards neurodegenerative diseases to increase future profitability
