Astra hit by drug setback

AstraZeneca has dropped the development of one of its experimental lung-disease treatments.

It is the second setback in a week for the pharmaceuticals giant, which announced yesterday that its motavizumab drug to prevent serious lung disease in infants had been discontinued, leading to a $445m(£287m) accounting charge.

The news follows Astra's disappointment last week at a further delay in winning approval from US regulators for its heart medicine, Brilinta. The US Food and Drug Administration (FDA) wanted further analysis of research into Brilinta – a blood-thinning pill – before clearing the drug for sale.

However, Astra's decision to pull development of motavizumab did not surprise analysts after the drug encountered troubles with the FDA. A US medical advisory panel cited concerns last June about potentially serious side effects, while the FDA added to delays by issuing a second so-called "complete response letter" in August. Astra confirmed motavizumab remains in development for other serious respiratory syncytial virus (RSV) treatments.

It recently posted a 26 per cent drop in pre-tax profits in its third quarter to $2.2bn, blaming legal costs and increased competition.