Pfizer ends indiplon accord with Neurocrine

Following delays in the approval of indiplon, world drug giant Pfizer returned the rights to the insomnia pill to its originator, Neurocrine. On the day of the news, June 22, shares in San Diego, USA-based Neurocine plunged 29% to close at $9.85, after hitting a 52-week low of $8.61.

The insomnia drug has had difficulty getting US clearance (Marketletter May 22). Two months ago, the Food and Drug Administration approved 5mg and 10mg capsules strengths but delayed the clearance of the 15mg extended-release formulation, seen by many industry observers as the only way for the drug to compete in the $3.0 billion a year US sleeping pill market, currently dominated by agents such as Sanofi-Aventis' Ambien (zolpidem tartrate). Neurocrine says it will continue to develop the drug alone and will explore other sources of funding.