West Pharma plans drug delivery exit
looking to hive off its drug delivery business and focus on its
primary business in prefilled syringes and components.
The company said that continuing its investment in the loss-making drug delivery business, which has technologies spanning nasal, oral and vaccine, would prevent West Pharma making the most of its pharmaceutical systems business, currently accounting for 98 per cent of the firm's turnover.
First quarter sales at the pharmaceutical systems division were up 12 per cent to $130 million, while drug delivery revenues came in at $3.2 million, double the amount recorded in the first quarter of 2003. But the latter unit still recorded an operating loss of $2.8 million for the period.
West Pharma made the announcement at the same time as it forecast a reduction in second-quarter earnings per share (EPS) to $0.61-$0.65 from $0.66 in the same period of 2003. However, it added that the full-year EPS should rise from $1.88 to $2.00-$2.10.
West Pharma's nasal drug delivery technologies include ChiSys, a proprietary chitosan-based technology for liquids or powders that increases the residence time of drugs on mucosal surfaces and may improve bioavailability, and pectin-based technology designed to overcome the dose 'spiking' problems that can occur with other intranasal formulations.
Its oral platforms include TARGIT polymer capsules for delivery into the lower gastrointestinal tract and a gastroretentive delivery system used for drugs that are only absorbed in limited areas of the small intestine. Both ChiSys and TARGIT could also have applications in vaccine delivery.
West Pharma said it will continue to plan for and carry out initial efficacy trials on three proprietary formulations: nasal fentanyl, for the treatment of episodic breakthrough pain; nasal leuprolide for endometriosis; and an oral formulation of budesonide for inflammatory bowel disease.
The company expects preliminary efficacy data for its fentanyl trial to be available in late 2004 and for its leuprolide and budesonide trials to be available in the first half of 2005. It said it will also continue to support its partnered development programmes.
