Merck Has High Hopes for Cholesterol, Obesity Drugs in 2008

Merck & Co. (MRK) said Tuesday it will develop and sell obesity and cholesterol treatments that resemble drugs of other companies that have faced safety issues. Merck's experimental cholesterol drug, anacetrapib, will enter final-stage testing next year. It is in the same class of drugs -- CETP inhibitors -- as Pfizer's (PFE) torcetrapib, which has been found to raise the risk of death and to elevate blood pressure (full story). "Anacetrapib had no effect on blood pressure," said Peter Kim, Merck's president of research. "These effects of torcetrapib appear to be due to an off-target, CETP-independent mechanism." Analysts estimate that anacetrapib could have annual sales of $15 billion.

Merck's obesity drug taranabant, which is similar to Sanofi-Aventis's (SNY) Acomplia, will also begin final testing. Acomplia was rejected by an FDA advisory panel in June because of concerns that it might increase suicide risk. "There is still a healthy amount of skepticism surrounding [the taranabant] program," said Robert Hazlett of BMO Capital Markets. Merck also plans to market Cordaptive, a niacin drug used to raise good cholesterol that avoids a side effect that has hindered sales of Abbott Labs' (ABT) Niaspan. Cordaptive could have annual sales of $430 million by 2012.

In related news, Merck is trying a third time to gain FDA approval to make Mevacor, its older cholesterol treatment, available over the counter. A preliminary FDA review said the drug is "reasonably safe and effective" if used as directed, but there is not yet "adequate consumer comprehension of the proposed product label to ensure safe and effective use."

Sources: Press release, Wall Street Journal, Bloomberg, AP

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