MERCK <MRK>, SQUIBB <SQB> BENEFIT FROM STUDY
Merck Co <MRK> and Squibb Corp <SQB>
will benefit from a study that shows lower levels of blood
cholesterol slows the build-up of fat in the heart's arteries,
lowering the risk of heart attacks, industry analysts said.
    Both companies have developed drugs that slow the body's
production of cholesterol although Merck is about 18 months
ahead of Squibb with a drug expected to be approved this year.
    "Certainly this study will create greater acceptance of
anti-cholesterol drugs," said Robert Uhl, a drug analyst at F.
Eberstadt Fleming.
    Although neither company's drug was used in the study,
which was conducted by a team of scientists at the University
of Southern California School of Medicine, both are leaders in
a new class of drugs that fight cholesterol.
    The study, reported in the Journal of the American Medical
Association, showed lower levels of cholesterol, achieved
through a combination of drugs and special diet, slowed and in
some cases reversed the build up of fatty deposits in the
heart's arteries.
    Such build up leads to heart attacks, the leading cause of
death in the U.S.
    Health officials have said lower levels of cholesterol
could immediately benefit six mln Americans who suffer symptoms
of coronary artery disease. The study advocated reduction of
cholesterol in some 40 mln Americans.
    As the anti-cholesterol crusade gains momentum, industry
analysts and executives believe a healthier diet and drug
therapy will gain wider acceptance.
    In this context, pharmaceutical analyst David Crossen of
Sanford C. Bernstein said "the culture can shift in terms of
drug treatment because some people arn't going to fundamentally
alter their diets".
    The worldwide anti-cholesterol drug market is valued at 600
mln dlrs a year. But as the new drugs reach the market,
analysts estimate revenues will swell to 1.5 billion dlrs
annually in about next five years.
    The drugs used in the study, in combination with the low
cholesterol diet, were niacin, a common compound, and
colestipol, a drug Upjohn Co <UPJ> has sold since 1977.
    But these two drugs have some drawbacks that analysts say
the new drugs from Merck and Squibb avoid. "Niacin leads to
tremendous amounts of flushing, constipation, or stomach
upset," Crossen said.
    Colestipol, a sand-like powder, comes in a dosage of 15 to
30 grams and must be mixed with a glass of water. "It isn't fun
to take," Crossen said. Drug analyst Uhl said the drawbacks
restricted Upjohn's sales for the drug, which he said is under
10 mln dlrs a year.
    In contrast, the new drugs from Merck and Squibb have
little side effects because they target a key factor in the
body's production of cholesterol -- an enzyme found in the
liver.
   
    "Past methods of getting down cholesterol have been rather
variable," said Dr. Charles Sanders, an executive vice
president at Squibb. The new drugs, in contrast, interupt a
clear step in cholesterol production, Sanders said.
    Also, the new drugs are easier to take since they come in a
tablet form swallowed once or twice a day.
    Merck's drug, Mevacor, received a recommendation from an
advisory panel of the Food and Drug Administration earlier this
year and is expected to receive full approval for sale in late
summer or fall.
    Squibb's drug, eptastatin, is expected to be submitted for
regulatory approval in the first or second quarter 1988,
Sanders said.
    Warner Lambert Co <WLA> and Bristol Meyers Co <BMY> also
have cholesterol fighting compounds similar to the Upjohn drug,
but only Merck and Upjohn are ahead in the new class of
cholesterol inhibitors.
 Reuter
