Posted on 16th Apr 2009 @ 4:16 AM
Welcome to the FP Magazine Daily blog. I want to start with an update
to the cover story in our just-published September issue. In "Just
Watch Me," contributing editor Mark Anderson tells the fascinating
developing story of Bellus Health of Montreal. After spending more
than $250 million on the development of an anti-Alzheimer's drug only
to have the U.S. Food and Drug Administration refuse to approve it in
2007 due to "inconclusive" test results, Bellus's CEO Francesco
Bellini unveiled a bold, unprecedented plan to relaunch the product as
an over-the-counter memory-protecting nutraceutical. In the story,
Anderson reports that the pill -- branded as Vivimind -- would be
available as early as this month. In fact, Bellus began selling the
product on September 2.
According to the company's press release, Vivimind will be "available
on the Internet and progressively at over 2,000 retail points of sale,
including major drug, grocery and mass merchandise stores and natural
health stores across Canada. It is expected to be available at more
than 3,000 points of sale by year-end."
Vivimind is packaged in a bright orange and white box. It should be
unmistakable when it begins to show up in your local grocery or drug
store. However, if you look carefully at the packaging and the fine
print, you'll notice that no where does it mention Alzheimer's
disease. While CEO Bellini -- who in the 1990s was CEO of Biochem
Pharma, which developed and manufactured the world's most successful
anti-AIDS drug, 3TC -- insists that the product works as originally
conceived (points discussed at length in Anderson's article), to
conform with regulations, the company is marketing it as a
memory-protecting natural health product, not an anti-Alzheimer's
drug.
Bellini considers Vivimind a multi-billion dollar proposition. As 3TC
proved, he's been right before. Whether he's right this time is an
open question. When the FDA rejected the then drug, investors and
analysts dumped Bellus's once-high flying shares (until earlier this
year, the company was known as Neurochem). In the five days of trading
since Vivimind was released, Bellus Health's TSX-listed stock has
remained essentially flat.
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