Facebook (FB) climbs to new highs on Q2 beat >>> READ MORE

FDA Rejects Sanofi Multiple Sclerosis Drug

It has already received approval overseas


prescription drugsThe U.S. Food and Drug Administration has rejected a multiple sclerosis drug from Sanofi (SNY) after finding that the French pharma giant had failed to demonstrate its benefits.

Sanofi hoped to increase its share of the multiple sclerosis drug market with Lemtrada, which received the approval of European regulators earlier this year. The multiple sclerosis drug has also won clearance from Canadian and Australian regulators. In its ruling, the FDA said that the multiple sclerosis drug required more clinical trials contrasting its performance with another treatment, Bloomberg noted.

Diabetes Drug From BMY, AZN Gets Panel Recommendation
Diabetes Drug From BMY, AZN Gets Panel Recommendation

The market for drugs that treat multiple sclerosis generates $20 billion in annual revenue. Sanofi acquired Lemtrada through its 2011 purchase of Genzyme.

An analyst at Bryan Garnier warned that Lemtrada’s rejection could have significant consequences, potentially delaying the entrance of Sanofi’s drug into the multiple sclerosis market by up to three years.

Shares of SNY stock fell almost 1% in pre-market trading on Monday.

Article printed from InvestorPlace Media, http://investorplace.com/2013/12/fda-rejects-sanofi-multiple-sclerosis-drug/.

©2017 InvestorPlace Media, LLC