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Opinion

Challenges and opportunities of drug


repositioning
Natalia Novac
Global Knowledge Management, External Innovation, Merck Serono, Merck KGaA, Frankfurter Strasse 250, D64293,
Darmstadt, Germany

Drug repositioning is an innovation stream of pharma- Repositioning in biotech


ceutical development that offers advantages for drug By the mid-2000s, with the excitement of the first success
developers along with safer medicines for patients. Sev- stories of sildenafil (Viagra1) repositioned from angina to
eral drugs have been successfully repositioned to a new erectile dysfunction, and thalidomide repositioned from
indication, with the most prominent of them being morning sickness to multiple myeloma, huge interest in
viagra and thalidomide, which have generated histori- repositioning fostered biotech and pharma entrepreneur-
cally high revenues. In line with these developments, ship that resulted in the creation of several startup com-
most of the recent articles and reviews on repositioning panies focused on repositioning (Table 1).
are focused on success stories, leaving behind the chal- To understand the outcome of these efforts toward
lenges that repositioned compounds have on the way to repositioning, I have analyzed the fate of these specialty
the clinic. Here, I analyze repositioning as a business pharma companies and further explored their success
opportunity for pharmaceutical companies, weighing strategy. As seen in Table 1, the majority of the reposition-
both challenges and opportunities of repositioning. In ing startups have not survived. One-third of the companies
addition, I suggest extended profiling as a lower-risk no longer exists and cannot be found in the market space
cost-effective repositioning model for pharmaceutical any longer (i.e., they either stopped trading or filed for
companies and elucidate the novel collaborative busi- bankruptcy). The cause of commercial failure of these
ness opportunities that help to realize repositioning of biotech repositioning companies is difficult to track. In
shelved and marketed compounds. most cases, companies never fail to communicate about
their positive results but do disappear from the market
Introduction without any press release. Sometimes, causes of attrition
According to the recent Pharma R&D Factbook from CMR can be deduced from the results of clinical trials (if pub-
International, the number of drugs which were terminated lished). Thus, one could assume that Avera Pharmaceuti-
in Phase III of clinical development has doubled in the past cals closed due to lack of clinical efficacy of its leading
5 years, reaching 55 compounds in the period from 2008 to compound AV608 in social anxiety disorder [4]. Other
2010 (http://cmr.thomsonreuters.com/pdf/2012-cmr-fact- potential failures, such as inability to find commercial
book-exc_cbr-en.pdf). This figure is particularly disturbing partners because of poor commercial prospects of reposi-
because the new active substance entries into development tioned assets or inability to raise funds, might be the cause
phases have also been steeply declining at a rate of ap- of the disappearance of the rest of the companies; however,
proximately 50% for each phase compared to 2007. The those failures are much less likely to be communicated
primary reason for drug failures in late development is publicly.
poor efficacy in the larger population of Phase III clinical Another one-third of the companies specialized for repo-
studies, whereas safety reasons are the primary cause of sitioning were acquired by bigger companies with various
attrition in earlier development phases [1,2]. The idea of successes. CeNeS Pharmaceuticals was acquired by Paion
recycling late-phase-failed compounds to a new indication for $21 million, whereas Aspreva was bought by Galenica
is an attractive opportunity from both business and social for a 30-fold higher amount. The reason for such an accom-
standpoints. A repositioned compound with proven bio- plishment was because the Aspreva successful deal with
availability and known safety profiles would benefit from Roche incurred royalties from off-label use of the drug
an accelerated R&D process, reduced development cost, mycophenolate mofetil in a new indication of lupus nephri-
decreased failure rate due to safety, and should contribute tis [5–7].
to a productivity boost by filling pipeline gaps [3]. From a The remaining one-third of the companies that still exist
social point of view, reutilization of knowledge generated in the open market went through turbulent times reflected
by patient data for future indications is highly ethical, by their name changes (Combinatorx, Biomedicine, Faust
maximizing the use of patient information. Therapeutics) or a drastic headcount reduction (Somaxon,
which in the end of the unusually lengthy development
Corresponding author: Novac, N. (Natalia.Novac@merckgroup.com). phase became a one-man company to bring the reposi-
Keywords: repositioning; extended profiling; repurposing; new use of old drugs;
compound reprofiling.
tioned drug silenor to approval) [8,9].
Looking at the high rate of failure of biotech companies
0165-6147/$ – see front matter
ß 2013 Elsevier Ltd. All rights reserved. http://dx.doi.org/10.1016/j.tips.2013.03.004
specialized in repositioning, the question arises on how it

Trends in Pharmacological Sciences, May 2013, Vol. 34, No. 5 267


Opinion Trends in Pharmacological Sciences May 2013, Vol. 34, No. 5

Table 1. List of companies focusing on repositioning founded before 2006 and their current status collected from business news
and former or existing company sites
Company name Current status Comment
Avera Pharmaceuticals No longer existing Since January 2012 no longer trading
Arakis No longer existing Since 2008 not found in any registries (a major partner Sosei)
Arachnova No longer existing Since February 2008 Arachnova Ltd was presumed to be no longer
trading
Dynogen Pharmaceuticals No longer existing In February 2009 the company filed for bankruptcy
Sention Inc. No longer existing Since February 2006 Sention was presumed to be no longer trading
Bionaut No longer existing Since August 2010 the website is no longer available
Aspreva No longer existing Acquired by Galenica in 2007 for $915 million
Cypress Biosciences No longer existing Acquired by Ramius in January 2011 for $255 million
Hypnion No longer existing Acquired by Eli Lilly in April 2007 for $315 million
Vela Pharmaceuticals No longer existing Acquired by Pharmos in 2006 for $29 million
Genaissance Pharmaceuticals No longer existing Acquired by Clinical Data in 2005 for $56 million
ChemGenex Therapeutics No longer existing Acquired by generic company Teva
Saegis Pharmaceuticals No longer existing Acquired by Lundbeck in 2006 for $27 million
CeNeS Pharmaceuticals No longer existing Acquired by Paion in 2008 for $21 million
Applied Genetics No longer existing Acquired in 2008 by Estee Lauder
KineMed Still trading Proprietary biomarker discovery technology
QUATRx Still trading Obtained own research via merging with Harmos
Somaxon Still trading After drastic headcount reduction finally launched Silenor after 6
hard years in clinical development
Corcept Therapeutics Still trading Mifepristone for Cushing’s syndrome approved in 2012
Vanda Pharmaceuticals Still trading First product Fanapt approved for schizophrenia in September 2012
Vivia Biotech SL Still trading Proprietary fluorescence activated cell sorting (FACS) technology
(discovery in autoimmune diseases)
Sosei Co., Ltd Still trading One launched product (contraception)
Verva Pharmaceuticals Still trading A part of Chemgenex fused to adipogen to form Verva (Phase II)
BioMedicines, Inc. Trading under different name Now called Intarcia (proprietary technology for implant
formulation for diabetes)
Faust Therapeutics Trading under different name Now called Domain Therapeutics (proprietary platform for target
identification)
CombinatoRx, Inc. Trading under different name Now called Zalicus Inc. (proprietary high-throughput technology
for combinatorial screening)

compares with de novo drug development and whether repositioning company, it needs to rely not only on experts
long-term survival rate of other biotech companies is simi- but also on technological intellectual property that allows
lar. According to a recent report by Canadian Biostatistics, the company to bridge hard times.
35% of Canadian biotech–pharma companies exit the busi-
ness over a long-term period of 10 years [10]. In a more Repositioning in pharma
dynamic world of California’s biotech industry, as much as According to recent reviews and market research reports,
48% of biotech companies ceased their existence over a repositioning constitutes 10–50% of R&D spending and is
similar 10-year period [11]. Thus, although the biotech viewed as an important part of product life-cycle manage-
business is associated with a high failure rate, reposition- ment [15,16]. Several pharma companies, such as Pfizer,
ing strategies represent an even greater risk for small AstraZeneca, and GlaxoSmithKline, have created units
biotech companies. dedicated to systematic scanning of repositioning oppor-
So what is the success strategy of survivors? It seems tunities.
obvious that most of the companies that were formed based In contrast to apparent investments, success stories of
on sole expertise of their founders did not survive in the repositioned drugs coming from big pharmaceutical compa-
long run. The survivors, in turn, backed up their reposi- nies have drastically declined in recent years. Table 2
tioning projects with a proprietary technology, which they represents repositioning examples together with the year
also offer as a service for other companies. For example, of approval for the new indication. The approval dates of the
Zalicus (formerly CombinatoRx), in addition to its reposi- repositioned drug show that most successful big pharma
tioning pipeline, developed the proprietary combination repositioning happened before the development of system-
high-throughput screening (cHTSTM) technology allowing atic efforts (e.g., year 2006), suggesting that the repositioned
for screening compound combinations in phenotypic mam- drugs resulted from serendipitous discovery. Possibly, it is
malian cell-based assays [12,13]. Similarly, Intarcia (for- too early to evaluate the success of more recent repositioning
merly BioMedicines) has a unique technology for diabetic efforts due to the lengthy development process. It may also
drug formulation, and KineMed offers the proprietary be that the obvious candidates for repositioning have been
heavy water labeling-based biomarker discovery platform exhausted and a much more thorough analysis and invest-
[14]. The above examples teach us that to be a successful ment has to be done to reposition the rest of the candidates.
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Opinion Trends in Pharmacological Sciences May 2013, Vol. 34, No. 5

Table 2. List of repositioned compounds updated and supplemented with information on compound approval
Drug Original indication New indication Year a
Amphetamine Stimulant Hyperkinesis in children (attention deficit hyperactivity disorder, ADHD) 1943
Allopurinol Tumor lysis syndrome Gout 1967
Zidovudine Cancer HIV/AIDS 1985
Minoxidil Hypertension Alopecia 1988
Bupropion Depression Smoking cessation 1997
Sibutramine Depression Obesity 1997
Finasteride Benign prostatic hyperplasia Alopecia 1997
Methotrexate Cancer Rheumatoid arthritis 1999
Fluoxetine Depression Premenstrual dysphoric disorder 2000
Atomoxetine Parkinson’s disease ADHD 2002
Thalidomide Morning sickness Multiple myeloma 2003
Cymbalta Depression Diabetic peripheral neuropathy 2004
Topiramate Epilepsy Migraine 2004
Paclitaxel Cancer Restenosis 2004
Sildenafil Angina Erectile dysfunction 2005
Requip Parkinson’s disease Restless legs 2005
Lumigan Glaucoma Hypotrichosis simplex 2009
Dapoxetine Analgesia and depression Premature ejaculation 2009
Milnacipran Depression Fibromyalgia syndrome 2009
Phentolamine Hypertension Dental anesthesia reversal agent 2009
Lidocaine Local anesthetic Arrhythmia 2010
Mifepristone (RU486) Pregnancy termination Cushing’s syndrome 2012
a
Year of first approval in new indications.

Interestingly, the most recent repositioning successes of execution of proof-of-concept (POC) clinical trials
2009–2012 have originated from the surviving specialty requires a substantial amount of clinical expertise.
pharma industry such as Corcept, whose repositioned Out-licensing of such compounds for a defined indication
mifepristone was approved for Cushing’s syndrome in or conduction of investigator-sponsored trials (studies
February 2012 [17,18]. It is also notable that most of the initiated and conducted by interested clinicians) are
recently approved repositioned compounds are targeting potential options to address this hurdle. However, the
either novel or orphan indications, such as premature choice of contract research organizations (CROs) or small
ejaculation, dental anesthesia reversion, hypotrichosis biotech companies that could take the risk to conduct
simplex, or fibromyalgia syndrome, all of which represent such POC studies is limited. This ‘reversed’ business
an attractive market niche [19–21]. model, in which pharma companies act not as a source
of cash for in-licensing or acquisition, but rather as a
Major challenges and potential for drug repositioning source of ideas and compounds for out-licensing, is un-
The limited number of star-performing repositioning pro- common and might need time for adoption. An additional
jects from big pharma companies in recent years reflects a complexity is introduced by repositioning projects for
plethora of challenges for drug repositioning. medical conditions that have never before been consid-
Similar to any other project, a repositioning effort needs ered as independent indications, such as erectile dys-
an upfront investment, and it is notoriously difficult to function or restless leg syndrome. These special
persuade management to invest in assets that were un- repositioning projects need field experts outside of the
lucky initially. Perhaps this type of organizational mental- usual repertoire of a pharmaceutical company [23,24].
ity led to repositioning of thalidomide by Celgene and not Repositioning of assets that failed in the later stages of
by the inventor company Grünenthal, who had one of the development is always combined with the limited time for
most prominent failures in drug development history. The development in the new indication. The initial so-called
reason for the initial failure of thalidomide was the incor- ‘composition of matter’ (COM) patent protects the com-
rect population selection, namely women in their first pound for 20 years (http://www.wipo.int/treaties/en/ip/par-
trimester of pregnancy. This resulted in birth defects of is/trtdocs_wo020.html). However, the hard road of drug
newborns, reflecting the teratogenic effect of the drug that development started by compound discovery takes at least
was unknown at the time of its approval. Exclusion of 13 years until the drug is on the market [25]. Approximate-
pregnant women from the patient population led to suc- ly six of the first years are spent in research, meaning that
cessful approval of thalidomide in multiple myeloma and the development phase is the lengthiest one, in part be-
erythema nodosum leprosum and its current development cause of strong regulation from governmental authorities.
in several indications by Celgene [22]. With these time lines, it is obvious that repositioning of a
Organization of pharmaceutical R&D around specific compound after it has failed in the initial indication is
therapeutic areas creates another issue for repositioning extremely risky time wise. Therefore, it is wiser to design a
projects that develop a compound for an indication outside branched development program, in which the compound is
of the strategic focus of the company. The design and developed in several indications in parallel, minimizing
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Opinion Trends in Pharmacological Sciences May 2013, Vol. 34, No. 5

the pipeline risk and the possibility of imminent expiration reduced fees for regulatory activities, and development
of intellectual property (see below). grants. These benefits are helpful to overcome the intellec-
An opportunity to get around the existing COM patent is tual property expiration challenge (described above) and
filing a combination of two old drugs for a new indication. indeed lad to successful repositioning of several com-
The repositioning company Zalicus is pursuing exactly this pounds to rare diseases, with imatinib being one of the
approach using a proprietary combination screening plat- most successful examples that is now approved in seven
form for the new combination discovery and developing separate orphan oncological indications (http://www.phar-
among others a combination of prednisolone and cyclospor- ma.us.novartis.com/product/pi/pdf/gleevec_tabs.pdf). An-
ine (prednisporin) for the treatment of allergic conjuncti- other incentive for the industry in repositioning for an
vitis. This discovery led to the recent in-licensing of orphan indication is the premium pricing typically used
prednisporin by Sanofi (http://www.businesswire.com/ for orphan drugs and therefore generating significant rev-
news/home/20121025005302/en/Zalicus-Licensee-Sanofi- enues despite the small market.
Status-Update-Prednisporin-FOV1101).
Changing the dosage or route of administration of a Effective drug repositioning
patented drug is yet another prospect for breathing new The conventional model of drug repositioning is compound
life into old compounds and creating a business incentive ‘recycling’ after it has failed in later stages of development
boosted by the novel COM patent protection. This tactic is or reached the market (Figure 1A) [30,31]. Such a model
used by Arcion, which is developing clonidine, an oral drug requires additional investment into a compound that has
first approved for hypertension in 1950, for the topical already used significant resources, as well as a solution for
application in painful diabetic neuropathy [26]. intellectual property expiration. A more effective business
An alternative way to extend patent protection is model of drug repositioning, ‘extended profiling’, allows
through generation of secondary patents such as ‘method testing of the compound in the most promising potential
of use’ (MOU) patents, which specify a new use of a indications immediately after a successful first-in-man
compound. However, most COM patents protect com- study. To realize POC studies without a significant in-
pounds for a broad range of indications, making MOU crease in resources, a company relies on several collabora-
generation difficult. Generation of MOU patents is partic- tive models such as investigator-sponsored trials, out-
ularly difficult for marketed compounds, which are often licensing, and codevelopment with specialty pharma or
reported in single case studies to be effective in indications private–public partnership (Figure 1B). Extending com-
different to the one where they are approved. These physi- pound profile early on gives developers an opportunity to
cian practice-derived reports prevent pharmaceutical com- learn not only about the efficacy in alternative indications
panies from the generation of a new MOU patent, thereby but also about potential side effects associated with certain
averting clinical trials that would analyze the efficacy of comorbidities, thereby derisking the pipeline. This model
the compound in larger population cohorts. Even in the is also more cost effective compared with the conventional
ideal case of no reports published about the potential new one. The average cost per patient for a Phase II study is
use of the compound, repositioning of marketed compounds US$36 000 with an approximate involvement of 100 to 500
could be halted because of the differential pricing policy for patients, whereas the average cost per patient for a Phase
different indications. There is no incentive for a pharma- III study is approximately US$47 000 where the number of
ceutical company to reposition from a low-price indication, patients varies between 1000 and 5000 patients [32]. Even
such as alcohol abuse or hypertension, to a more expensive the most modest calculations using the minimum number
one, such as oncology, despite the potential medical and of patients in a Phase III study will prove that the invest-
financial value for patients. ment into several POC studies early in the development
If, in the USA, some such noncommercial repositioning and continuing with the most promising indication will be
trials are sponsored by the National Institutes of Health more commercially attractive than reinvestment after the
(NIH), no similar governmentally sponsored body exists in compound has failed in a large Phase III confirmatory
Europe. As the majority of academic institutions cannot study. The developmental history of the recently approved
afford expensive clinical development, currently patients Pfizer compound crizotinib (Xalkori1) might be considered
themselves consolidate their forces in the form of patient as an example of the extended profiling model. The drug
advocacy groups, participating as alternative sponsors for was initially designed to treat anaplastic large cell lym-
clinical development. Collaboration of pharma companies phoma (ALCL) because it is an inhibitor of the anaplastic
with patient advocacy groups, particularly in niche indica- lymphoma kinase and its fusion proteins. However, by the
tions, could lead not only to financial risk-sharing but time the compound was entering the clinic, other types of
significantly accelerate patient accrual and access to key cancers were found to carry ALK5-fusuon mutations.
networks of opinion leaders maintained by patient advo- Based on the latest discoveries, several Phase I/II studies
cacy groups [27,28]. were initiated profiling the drug in three indications in
More than 7000 rare diseases affecting cumulatively 6– parallel: ALCL, inflammatory myofibroblastic tumour
7% of the population have a great prospect for drug repo- (IMT), and in non-small cell lung cancer (NSCLC). As
sitioning [29]. The US Orphan Drug Act (ODA) protects the described in the model, here the collaborative development
developers in this field by 7 years of market exclusivity, tax was in place from the beginning, that is, the ALCL study
credits for certain development costs, and application fee was carried out in collaboration with the National Cancer
waivers. Similarly, European legislation gives the drugs Institute (NCI) and Children’s Oncology Group, the study
with orphan designation 10 years of market exclusivity, in IMT was done as a form of investigator-sponsored trial
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Opinion Trends in Pharmacological Sciences May 2013, Vol. 34, No. 5

(A) Convenonal reposioning business model:

Discovery and preclinical Ph I Ph II Ph III Launch Post-markeng

(B) Alternave extended profiling business model:

Discovery and preclinical Ph I Ph II Ind1 Ph III Launch Post-markeng

IST Ph II Ind2
Connue with the most
PPP successful indicaon or, in
Ph II Ind3
Alternave case of broad success,
indicaon connue to develop in
COL Ph II Ind4 collaboraon
plan

EXT Ph II Ind5

TRENDS in Pharmacological Sciences

Figure 1. Repositioning business models. (A) Conventional business models, when a compound failed in the last stages of development or marketed compounds are
reintroduced into the pipeline for research and development in a new indication. (B) Extended profiling business model, where each compound that proved to be safe in a
Phase I study is a subject for an alternative indication plan (AIP) derived from the reassessment of public and proprietary data and prioritization of the most promising
indications. According to the AIP, a compound is tested in several indications in the form of IST (investigator-sponsored trial), PPP (private–public partnership), COL
(collaboration with the other pharma or academic body), or EXT (out-licensing for the limited indication with the back acquisition/milestone payment option).

(IST) with the Dana-Farber Institute, and the NSCLC 4 Liebowitz, M. et al. (2007) Safety and efficacy of AV608 in subjects with
social anxiety disorder. In 47th Annual NCDEU Meeting. June 11–14,
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and finished with the historically unprecedented fast ap- maintenance therapy for lupus nephritis: rationale and protocol for
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