Carter-Wallace Abandons Drugs Research

Carter-Wallace of the USA has announced that it is virtually abandoning its pharmaceutical research following the difficulties it has encountered with two drugs. The company will take a $49 million charge in the second fiscal quarter in order to reorganize its pharmaceuticals division.

In August, reports emerged of serious side effects linked to the use of the company's antiepileptic agent Felbatol (felbamate; Marketletters August 8 and 15). The drug had been found to be fatal in six patients since its launch in September last year, and the US Food and Drug Administration said at the end of last month that the product can only be prescribed to epilepsy sufferers for whom the benefits of the treatment outweigh the risks (see page 28).

C-W is scaling down by making 630 job cuts, around 23% of its workforce in the USA. The job losses will come from the Wallace Laboratories division. Its sales force will be cut by around 41%, and some manufacturing operations will also be shut down.