CV Therapeutics' second drug enters Phase III

CV Therapeutics has started a Phase III trial of its second pipelinedrug, the selective A1 adenosine receptor agonist CVT-510, in patients with paroxysmal supraventricular tachycardia. The firm's lead compound, ranolazine, is currently in Phase III development for the treatment of chronic, stable angina, with data from the CARISA trial in this setting expected before the end of the year (Marketletters passim).

Commenting on the development, analyst Steven Harr of Robertson Stephens said: "while PSVT is a limited market, it offers important proof-of-principle for the much larger market of the acute treatment of atrial fibrillation." Data from a Phase II trial of CVT-510 in patients with atrial fibrillation/flutter are due later this quarter, he added and, based upon prior experience with the compound in PSVT, he is optimistic that the results will be positive.

Robertson Stephens is estimating peak sales for CVT-510 for the treatment of both acute atrial fibrillation and PSVT at around $300 million per year. "With Phase II data from CVT-510 in atrial fibrillation and Phase III data for ranolazine, CV Therapeutics has two significant value-creating events before year-end," said the broker. It has a buy rating on the company and a $67 share price target (CV Therapeutics is currently trading at around $55).