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BREAKING- Albany Molecular Plunges 20% on Drug Development Termination (AMRI)

Shares of Albany Molecular Research (NASDAQ: AMRI) are plunging at 1:22 p.m. EDT after informing its license partner, Bristol-Myers Squibb (NYSE: BMY) that it was terminating development of BMS-820836–a drug in Phase II development for Treatment of Resistant Depression.

The text of the release reads:

Albany Molecular Research, Inc. (“AMRI”) has been informed by its license partner, Bristol-Myers Squibb (“BMS”), of its decision to terminate development of BMS-820836, an investigational triple reuptake inhibitor in phase II clinical development for Treatment Resistant Depression (TRD). This decision is being announced today to the various clinical investigators who had enrolled patients in phase II studies. A third ongoing safety study is being discontinued. According to BMS, this decision was made based on the drug’s failure to achieve the primary endpoint in two phase IIb studies – superiority over duloxetine (an SNRI) or escitalopram (an SSRI) in patients with TRD.

AMRI has learned that BMS intends to share further data from the two phase IIb studies at an appropriate scientific forum and/or in a scientific publication at a future date. The 2005 License and Research Agreement between AMRI and BMS (the “License Agreement”) has been a source of past revenue for AMRI, providing for payments for research services and milestones earned on specific compounds. This decision by BMS regarding BMS-820836 will have no impact on AMRI’s financial guidance or forecasts, including, the Company’s financial guidance for the third quarter and full year 2013 which was recently updated in the Company’s press release and conference call on August 6, 2013. AMRI expects to have continued discussions with BMS regarding their plans for other development compounds and leads previously identified for potential development against TRD or other CNS indications.

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About Albany Molecular:

Albany Molecular Research, Inc., a contract research and manufacturing organization, offers drug discovery, development, and manufacturing services to pharmaceutical and biotechnology companies in the United States, Europe, and Asia. The company offers drug discovery services, including assay development and design, screening, screening library, natural product, custom synthesis and library synthesis, medicinal chemistry, computer-aided drug discovery, in vitro ADMET, and bioanalytical services.

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Disclosure: At the time of this writing, the author had no position in the company mentioned.

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