Abbott begins Ph I trial of ABT-560

Danish biopharmaceutical firm NeuroSearch says that licensee US health care major Abbott Laboratories has enrolled and dosed the first patients in a Phase I clinical trial of the drug candidate ABT-560. The move triggers a milestone payment to the Copenhagen-headquartered firm.

The drug, which is a neuronal nicotinic receptor modulator, is being developed as a therapy for various central nervous system disorders as part of an agreement the companies signed in early 2000 (Marketletters passim). Under the terms of the deal, in return for all rights to the drug, Abbott is responsible for all development and commercialization costs. NeuroSearch, which originally identified the agent, will receive further milestone payments as subsequent developmental and regulatory goals are achieved. The Danish firm is also entitled to sales royalties if the drug is successfully commercialized. Further financial terms were not provided.

The news initially caused Neurosearch's share price to edge up 1.5% to 277.00 Danish kroner per share in trading on the Copenhagen Stock Exchange, before eventually closing at 275.50 kroner per share on the day of the announcement, July 30.