Updated with new information.
PRINCETON, NJ ( TheStreet) -- Bristol-Myers Squibb (BMY) suspended a mid-stage study of its experimental hepatitis C drug BMS-094 due to a serious safety issue -- a major blow to the company's research pipeline that is also likely to rejigger the way Wall Street views other companies' efforts to develop an all-oral therapy against the viral liver disease.
BMS-094 belongs to the highly coveted and potent class of hepatitis C drugs known as nucleotide polymerase inhibitors, or "nucs" for short. If Bristol is forced to shelve BMS-094 permanently, competitors with their own nucs still in development -- Gilead Sciences (GILD - Get Report), Idenix Pharmaceuticals (IDIX) and Vertex Pharmaceuticals (VRTX - Get Report) -- stand to benefit as long as the toxicity that derailed BMS-094 is specific to that drug and is not a class effect.
For Bristol, the blowup of BMS-094 is even more painful because the drug was the sole reason behind the $2.5 billion acquisition of Inhibitex last January.The safety issue that forced Bristol to suspend the phase II study of BMS-094 is believed to be heart failure, according to ISI Group analyst Mark Schoenebaum. Bristol is not positive that BMS-094 caused the heart failure but the company is "very concerned" and is taking the extraordinary step of evaluating all patients treated with the drug for potential heart problems, said Schoenebaum in an email to clients. "We recommend that investors assume BMY's
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