Theratechnologies Inc T.TH

Merck AG initially bought US rights from Th

[Biobob]

 

October 29, 2008

Merck KGaA finds value in Theratechnologies

• 
• Amy Brown
•   

 

Merck KGaA has come to the rescue of Theratechnologies, buying US rights to Tesamorelin, in phase III trials as a treatment for excess abdominal fat in HIV patients with lipodystrophy, in a deal worth up to $215m.

Phase III data on the product released so far has been disappointing, leading to predictions that the company would struggle to sign up a top tier pharmaceutical company; a prediction that appears to have come true (Tesamorelin data reduces options for Theratechnologies, June 23, 2008). Even so, the underwhelming response from investors was surprising, with the stock edging just 7% higher to C$2.35 in early trade.

[PWIB123]

Wow!  You're memory is long.  What was teh difference in this Ph. 3 trial versus what they are attempting to do today?  

[SPCEO1]

When they signed the partnership deal on Egrifta, they were targetting a market that was quite small (lipodystrophy) and one in which Merck AG was supplying a drug already. Merck AG likely partnerred with TH just to protect its own business and I suspect they were the only bidder. The deal was signed in the midst of  the 2008 market meltdown as well if I can recall. I am not sure  what