Variquel key to IS Pharma's growth, says Edison

The success of UK speciality hospital medicines company IS Pharma is dependent on its key product, Variquel (terlipressin), used in the treatment if oesophageal bleeding in liver patients and which is being launched across the European Union, note analysts at Edison Investment Research.

Following its early approval, Variquel had its launch brought forward. This momentum should give strong sales in fiscal year 2010. Also, the analysts say, its anti-nausea therapy Aloxi (palonosetron) has a strong, five-day action advantage in the £20-25 million ($32.5-$40.6 million) UK market. Cryogesic, the numbing analgesic spray, grew sales at 33%. The UK licence to Aequasyal, an oral spray manufactured by French pharmaceutical group Laboratories Carilene announced January 11, underpins the UK firm's growth. IS Pharma
aims to deliver strong growth, led by its acquisition-focused management.

Variquel is approved in nine EU territories with the rest likely in the current fiscal year. The drug's first-half sales could grow to £3 million from £1.2 million in the first half,
making £4.2 million for the year. Omens for Variquel are good, say the Edison analysts, with four of seven UK liver centers having tried the product. It competes with Ferring's Glypressin.