A better mousetrap wasn't needed
When applying a drug delivery technology to a marketed product, the resulting formulation should result in increased sales or otherwise give a product a competitive advantage. If not, drug delivery companies may find their would-be partners unwilling to invest in such projects. An example is Aradigm Corp., which saw 25 percent of its market cap erased last Monday when partner Genentech Inc. elected not to proceed with the development of a new version of its Pulmozyme dornase alfa inhalation solution for cystic fibrosis using the AERx Pulmonary Drug Delivery System inhaler.
"Pulmozyme is a great drug delivered using an old nebulizer system," said ARDM CFO Norman Halleen. "But because of the relatively flat revenue growth of Pulmozyme, it didn't provide an economic opportunity of switching to AERx."...