Biotech Implosion: Memory Pharmaceuticals Corp. (MEMY)

Early this morning, Memory Pharmaceuticals (MEMY) dropped a bomb with its announcement that Phase IIa results for MEM1003 failed to achieve its effectiveness targets for treatment in acute mania in bipolar disorder.  It said the product was safe and well tolerated, but that is of little use if it failed to meet endpoints. 

Here is the outline of the results from teh company: Eighty-four subjects were randomized to receive MEM 1003 or placebo for a 21-day treatment period, which was followed by an optional open-label four-week treatment period. The primary outcome measure was a comparison of the percentage of subjects in the placebo and MEM 1003 treatment groups with at least 50% improvement from baseline in the Young Mania Rating Scale (YMRS) at 21 days. The secondary outcome measures were the mean change from baseline in the YMRS, the Modified Clinical Global Impression – Bipolar Scale and the Montgomery-Asberg Depression Rating Scale at 21 days. None of these outcome measures was achieved.

The company is also testing this compound in Alzheimer’s studies and states that its assessment in Phase IIa studies there are very different and not predictive of results in that study.  Those study results will not be available until Q4 2007.

MEMY shares are down 30% at $2.05 on very thin volume in pre-market activity; the 52-week range is $0.84 to $4.94.  It had a $196 million market cap before the drop, and unfortunately its liquid assets are equally matched with liabilities as of the September 30, 2006 balance sheet.

Jon C. Ogg
March 5, 2007

Jon Ogg can be reached at [email protected]; he does not own securities in the companies he covers.