A.P. Pharma: Side Effect Issue With Competitive Drug Is A Huge Positive
By Smith On Stocks:
Investment Thesis
The FDA issued a safety communication on June 29, 2012 further advising physicians on the link of ondansetron (Zofran) to QT interval prolongation; this condition can cause abnormal heart rhythms that in some cases may be life threatening. This follows a previous communication on the same concern on September 11, 2011. Because AP Pharma's (APPA.OB) competitive product in development, APF530, is not linked to QT interval prolongation, this gives APF530 a meaningful differentiation from ondansetron in terms of safety. In addition, ondansetron can no longer be given as a single 32 mg infusion and will now have to be given in roughly three infusions over a twelve hour period. Some contacts I have spoken with think that these factors will cause a major erosion in ondansetron sales. If their assessment is correct, this could be a huge positive for A.P. Phama as ondansetron currently accounts for one thirdComplete Story »
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