UCB loses 13% in capitalization over few hours due to investigational osteoporosis drug

UCB’s shares fell over 13% today (Brussels), as it was announced that FDA is likely to refuse to grant approval for investigational osteoporosis treatment romosozumab this year, contrary to a previous statement. Romosozumab was co-developed with US-based biotech company Amgen and was tested in a Phase III clinical trial. The trial demonstrated that Romosozumab helps reduce the risk of fractures by 25%. The treatment, thus, has higher efficacy than Merck & Co.’s already marketed product Fosomax. It was also reported that 2.5% of patients suffered from serious cardiovascular issues during the trial, which had never been reported before. Importantly, patients treated with Fosomax experienced cardiovascular issues too, yet these affected a limited proportion (1.9%) of them. Romosozumab has potential to generate sales of over €2.7bn per year, analysts say.
(Source: Reuters)