Zonagen Shares Dip On "Vague" Vasomax Data

Zonagen shares fell 17% after shooting up 41%, following what wasdescribed as premature investor enthusiasm based on the release of Phase III data of its oral treatment for male impotence, Vasomax (phentolamine mesylate; Marketletter June 2).

According to some Wall Street analysts, the data were frustratingly vague about the quality of erections and whether patients were able to have sexual intercourse. Marc Pentopoulos of Genesis Merchant Group Securities noted that the company needs to come up with more concrete data before the efficacy of the study can be determined, while Charles Olsziewski of PaineWebber expressed surprise that the announcement "didn't really say anything." Zonagen plans to release more detailed data in the summer, noted chief executive Joseph Podolski, who added that the company chose to disclose the results it had so far, as a poor response rate would have made additional data irrelevant.