Yesterday's announcement by Merck & Co. Inc. and Danish pharmaceutical company H. Lundbeck A/S that they were scrapping an insomnia drug because of disappointing effectiveness and side effects puts in jeopardy the future of Lundbeck's U.S. commercial headquarters in King of Prussia.
In February, Lundbeck USA moved into an 11,000-square-foot office in King of Prussia to establish a U.S. commercial presence and begin selling medicines, including eventually the experimental insomnia drug, gaboxadol.
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Merck and Lundbeck, which collaborated for three years, said they were halting the third and final stage of studies because "the overall clinical profile" for gaboxadol "does not support further development." Side effects included dizziness, hallucinations, vomiting, and a rapid heartbeat, referred to as tachycardia.
In December, Merck had forecast that the insomnia drug could be important to future sales, but, in October, Merck delayed ...
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