Pharma Roundup: Sanofi and Pfizer Trim Obesity Drugs, Teva Challenges Merck Patent, and More

(MoneyWatch)  Sanofi, Pfizer cancel obesity drugs -- Sanofi-Aventis formally canceled its troubled Acomplia program today; psychiatric side effects have made U.S. approval increasingly unlikely. A few hours later, Pfizer canceled development of its similar phase III compound, presumably because Acomplia's woes will provoke intense scrutiny on any future anti-obesity products. The fate of similar anti-obesity treatments from Bristol-Myers Squibb and AstraZeneca, both of which are in phase II testing, is unclear. [Sources: In the Pipeline, Reuters]

Merck faces patent challenge from Teva -- Even though protection for Merck's Singulair doesn't expire until 2012, Teva has initiated legal proceedings which could allow it to release a generic version as early as next August. [Source: Pharmalot]

Contract research organizations are hurting, too -- As pharma and biotech companies cut costs, CROs like Charles River Labs seemed poised to profit, as big drug makers contracted more and more research work to Charles River and similar companies. Sales, however, have slipped, with CEO Jim Foster of Charles River blaming (in part) the credit crunch. [Source: Pharma's Market at CNBC]

Medco CEO predicts 2009 legislation on biotech generics -- Congress will probably smooth the path for generic versions of biotech drugs, according to CEO Dave Snow. It's a lucrative potential business -- Snow said that biotech patents worth $10 billion will expire by 2010. [Source: WSJ Health Blog]