deCODE genetics, Inc. (DCGN)

deCODE genetics, Inc. operates as a biopharmaceutical company in the United States and Iceland. The firm created a database of Icelanders' gene samples, medical records, and genealogy records, some dating back to the ninth century. deCODE uses this data to develop drugs on its own and with partners such as Roche and Merck.

The company is in the growing phase of development of investigational drugs and with no product in the market its stock price is likely to be driven by the outcome of the results of clinical trials on its investigational drugs. The investor’s confidence in the company has taken a beating following the suspension of Ph III trial with its led investigational drug DG031 in preventing heart attack. DG031 tablet was found to be dissolving less effectively and thereby under dosing patients. This meant that the company would have to change its manufacturing process. However, lately the company is contemplating to resume testing DG031 with a once-a-day dosing regimen.

At the close of the year 2006, the company completed the Phase IIa trial of another investigational drug DG041 for the prevention of arterial thrombosis and is expected to furnish its efficacy results by the second quarter of 2007. The other drugs of the company are at early stages of clinical development.

The suspension of further clinical testing on its led investigational drug DG031 and with the other investigational drugs in early stages of clinical research, the company yet has to gather a lot of steam.