Allied Capital Inc Tracks Dainippon Sumitomo Pharma Co Shares Surge

NEW YORK - Jan. 26, 2015 - PRLog -- Japanese pharmaceutical concern, Dainippon Sumitomo Pharma Co, has seen their share values surge to their highest level since March 2001. The 17% surge in value was driven by news from the U.S that their partner Intercept Pharmaceuticals Inc had achieved such a successful second round FDA trial of their liver treatment drug that testing was stopped.

The drug in question, obeticholic acid or OCA was  developed to treat sufferers of nonalcoholic steatohepatitis, a liver disease that causes damage in non and light drinkers resembling that encountered in people whose livers are damaged by severe alcohol abuse. OCA was developed as part of a joint venture between Dainippon and Intercept announced back in 2011.

“Leaving aside the obvious financial benefits for both Dainippon and Intercept, this treatment is a boost for those afflicted with steatohepatitis and in the U.S those sufferers represent between 2 and 5% of the population. In the second stage trial of 238 patients, OCA scored a minimum 2 out of 8 points across the board with all treated, just a remarkable achievement foe ant drug regime” opined Healthcare Analyst for Allied Capital Inc, Dr. Guy Edwards.

OCA has been licensed for commercial sale in both China and Japan since March 2011 and with most analysts predicting that U.S FDA stage three trials will be little more than a formality in light of the abandoning of the second stage, U.S commercial sale is believed imminent for the liver treatment drug. Shares of Intercept exploded in value tripling in value yesterday, before gaining a further 62% to $455.83 in trade today with Dainippon Sumitomo; shares rose 17% to 1906 Yen at close, its highest value since March 2001.

“Although already a proven and available treatment in Japan and China, FDA approval for OCA opens a huge market for these companies, both here in the U.S and elsewhere as FDA approval is often associated with approval in other Western countries. As new markets become open for Dainippon Sumitomo and Intercept, we can expect to see additional gains being made” stated Dr. Guy Edwards of Allied Capital Inc.

http://www.alliedcapitalinc.com/

http://www.bloomberg.com/news/2014-01-10/dainippon-sumitomo-surges-on-partner-drug-trial-for-liver-drug.html