Shares in pharmaceuticals group Shire have hit an all time high after news one of its drugs was successful in treating binge eating.
The company said Vyvanse, used in cases of attention deficit hyperactivity disorder (ADHD), had proved superior to a placebo in reducing binge eating in two late stage trials. It now plans to submit an application to US regulator the Food and Drug Administration for approval of the drug by the third quarter of next year. Chief executive Flemming Omskov said:
Binge eating disorder is a condition for which there is no currently approved pharmacologic treatment and yet there is a significant unmet patient need, as was demonstrated with the faster than expected enrolment of participants in our clinical trial programme.
Our development of Vyvanse for [the disorder] also aligns well with Shire's growth strategy of developing innovative treatments to address significant unmet patient needs.
The disorder was officially recognised as a psychiatric disorder in the US in May, affecting 2.8% of adults in their lifetime. Shire added:
[It] is characterized by recurring episodes of binge eating, feeling out of control while binging, and feeling guilt and shame afterward.
With positive updates on other treatments in its pipeline, Shire's shares climbed to a record £28.92 before slipping back to £28.71, still 51p higher on the day so far. Brian White at Shore Capital issued a buy note, saying:
Reassuringly the safety for Vyvanse in these two studies appears to be generally consistent with the known profile established in studies in adults with ADHD.
Our Shire model includes risk adjusted forecasts for Vyvanse in binge eating disorder with the first revenues ($50m) expected for 2015, in line with current filing timelines. Although with positive phase 3 data we can foresee the potential for off label prescribing of Vyvanse by physicians in the disorder to begin ahead of regulatory approval.
