Glaxo Stops Testing of AIDS Drug on Liver Concerns (Update3)

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Oct. 25 (Bloomberg) -- GlaxoSmithKline Plc, the biggest maker of treatments for HIV, halted studies of an experimental AIDS medicine because of concerns it may cause liver damage.

The drug, known as aplaviroc, was in phase III trials, the final stage usually required for regulatory approval, the London- based company said today. Glaxo said it halted all studies after a patient was found with elevated liver enzymes and bilirubin, which can indicate liver disease.

`It's clearly not good news,'' Robin Gilbert, an analyst at Numis Securities, said in an interview. `But it's just one of many, many products Glaxo has under development.'' Gilbert has a ``hold'' recommendation on the stock.

Last month, Glaxo and its partner Ono Pharmaceutical Co., said phase II tests revealed the drug may cause liver abnormalities. The trials were conducted with HIV patients who had never been treated with other drugs for the virus.

``Clearly we're disappointed, but our primary concern is to protect the safety and health of our patients,'' Glaxo spokesman Chris Hunter-Ward said in an interview.

While Glaxo intends to stop all patients from taking aplaviroc, those who are considered to be receiving clinical benefit from it can choose to continue taking it until an alternative therapy is found, the company said.

Shares of Glaxo fell 27 pence, or 1.9 percent, to 1,401 pence at the close of trading in London.



To contact the reporter on this story:
Etain Lavelle in London at at elavelle1@bloomberg.net.

Last Updated: October 25, 2005 12:02 EDT