AstraZeneca scraps diabetes drug development

AstraZenecan, one of the world’s leading pharmaceutical companies, has suffered a weakening blow to its drug pipeline . The company have announced their decision to scrap the development of their diabetes drug Galida, which was at a late stage of development. The move has weakened AstraZeneca shares by over 1.5 per cent in early trading .
Before being scrapped, Galida had reached phase III clinical trials. The drug was a major constituent part of AstraZeneca’s drug pipeline, and a major hope for the company. Before the project even bega, however, the company has clearly stated the risks of developing the drug.
AstraZeneca released a statement following results from clinical trials. According to them the drug was “unlikely to offer patients significant advantage over currently available therapy.” Galida was forecast to be a major earner for the company, although despite share drops it remains valued at 46 billion pounds.
Galida was described as an uncertain project, but the decision to drop it “disappointing” according to one AstraZeneca executive. A further reason behind the dropping of the drug lies with the likelihood of cheap generic products of a similar nature being introduced in the next few years.