CV Therapeutics, Inc. (CVTX)

NetscribeBiotech (78.13) Submitted: 1/08/07 7:50 AM : Start Price: $13.48 CVTX Score: 3.21

CV Therapeutics is a development-stage company specializing in small-molecule drugs to treat chronic cardiovascular diseases. The firm's only marketed product Ranexa, licensed from a Roche subsidiary, treats chronic angina for select patients by altering metabolism.

The company witnessed a phenomenal growth in the third quarter of 2006 as a result of the launch of its flagship drug Ranexa in January 2006. Ranexa has been approved for the second line of therapy for the treatment of chronic angina. However, Ranexa is also undergoing further clinical testing for approval as the first line of treatment of chronic angina. The results of these tests are expected to be furnished in the first quarter of 2007.

Despite a healthy top line growth, the bottom line of the company ended up in red. The company in the upcoming quarter is going to be negatively impacted by the termination of a co-marketing deal with Solvay for selling hypertension drug Aceon. On the positive note, the company is looking forward to filling NDA for its investigational drug Regadenoson for myocardial perfusion imaging tests after the recently concluded successful Phase III trial.

Considering the tremendous opportunity that chronic angina presents, the company’s leading drug Ranexa has a bright future but would face stiff competition from competing drugs of pharmaceutical giant like Pfizer and Myogen. It is also going to face challenges from CoTherix and United Therapeutics as they are in development of small molecules to treat heart arrhythmias. The recent outlook for the company does not look encouraging at the back of termination of marketing deal with Solvay and competition faced by its flagship drug Ranexa.

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