The WSJ is reporting this morning that Roche has been forced to suspend further clinical trials of its new diabetes candidate, taspoglutide - due to more tribulations (side effects). It had been reported earlier (back in June) that the drug would be delayed due to some problems in clinicals but the thought was that the drug could be saved.
Now, it looks as if taspoglutide will not make it out of the clinic. CEO Severin Schwan had touted this in a pipeline review for analysts as one of 6 drugs that Roche considered either first in class or best in class. Taspoglutide was looked at as a potential billion dollar plus annual contributor to revenues. Now it is taking on water and may be going down for the last time.
This is another blow to the Roche immediate revenue picture and further highlights why the company feels it must implement a global cost savings program which was announced last week.
Posted by Bruce Lehr Septmeber 12th 2010.