AstraZeneca drug gets boost in cholesterol wars

By Ben Hirschler

LONDON (Reuters) - AstraZeneca (AZN.L) is stopping a clinical trial of its blockbuster cholesterol fighter Crestor early because of the clear benefits of the medicine compared to placebo, the company said on Monday.

The news is a boost for Crestor, the group's third biggest seller, in an increasingly competitive anti-cholesterol market. It comes as doubts deepen over the value of Vytorin, a rival drug from Schering-Plough SGP.N and Merck & Co (MRK.N).

"It's a very fortuitous combination for AstraZeneca," said Nomura Code analyst Paul Diggle.

Shares in the Anglo-Swedish group were 2.3 percent higher at 1,891 pence in a weaker European stock market at 12.30 p.m.

Merck and Schering-Plough both fell in pre-market trade in New York as Goldman Sachs and Lehman Brothers lowered their price targets on the two companies in the wake of criticism of Vytorin at a meeting of U.S. cardiologists at the weekend.

Shares of Merck fell 4.5 percent to $42.50 (21.4 pounds), while Schering-Plough shares dropped 12.7 percent to $17.

Industry analysts said the decision to halt the Crestor clinical study early, coming on top of Vytorin's problems, would enhance Crestor's standing as a highly effective agent and could reinvigorate sales of the product.

Crestor growth slowed towards the end of last year as it battled for market share against cheap generic simvastatin -- an off-patent version of Merck's Zocor -- and other branded drugs, such as Vytorin and Pfizer's (PFE.N) Lipitor.