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March 23, 2000

Type-2-Diabetes: FDA extends exclusivity of Glucophage for use in pediatric patients in the United States

Darmstadt/Germany, and Princeton, N.J./USA, 23 March 2000 - Merck KGaA announced today that Bristol-Myers Squibb, its U.S. licensee for Glucophage (metformin), has been granted an extension on the marketing exclusivity of Glucophage through September 3, 2000 by the U.S. Food and Drug Administration (FDA). Glucophage, the world's leading Type-2-Diabetes therapy, is a registered trademark of Lipha S.A., the Ethicals business of the Merck Group in France, and is licensed to Bristol Myers Squibb in the United States. Global sales of Glucophage increased by +53 percent to EUR 1,393 million in 1999, of which USD 1.312 million have been generated in the United States.

Bristol-Myers Squibb received a six-month extension on the exclusivity of Glucophage after complying with a written request from the FDA to perform clinical studies to assess the safety, efficacy and pharmacokinetic profile of Glucophage in pediatric populations. Based on the results of these clinical studies, Bristol-Myers Squibb has filed a supplemental New Drug Application (sNDA) to gain FDA clearance of Glucophage for use in pediatric patients (ages 10-16) with Type-2-diabetes. The sNDA is under review by the FDA.

As part of the FDA Modernization Act, the U.S. Congress included provisions to encourage more investigation of the unmet medical needs of pediatric patients. One provision allows the Administration to request in writing that companies voluntarily conduct clinical studies to evaluate the use of their products in children. Companies that chose to comply with the written request are granted an additional six-month period of exclusivity following the submission of reports on successfully completed pediatric studies that satisfy each aspect of the FDA's request. In accordance with FDAMA, Bristol-Myers Squibb conducted studies to determine the safety and efficacy of Glucophage in pediatric patients with Type-2-diabetes.

Type-2-diabetes, a condition previously thought to affect mostly adults over the age of 45, is now being more frequently diagnosed in children. Physicians attribute increases in Type-2-diabetes in children to environmental factors such as poor diet and limited exercise. Hereditary influences such as family history and ethnic background are also associated with the increased incidence of the condition in pediatric patients. Type-2-diabetes is a serious disease that if left untreated and uncontrolled, can lead to complications which may cause blindness, kidney failure and amputations. On February 23, 2000, the American Diabetes Association (ADA) recommended in a consensus statement that "If treatment goals with nutrition, education, and exercise are not met, pharmacologic therapy is indicated. The first oral agent used should be metformin."

Bristol-Myers Squibb, as licensee of Merck KGaA, continues to seek additional therapeutic alternatives that offer new management options for patients with Type-2-diabetes. In September 1999, the company announced that it had submitted a New Drug Application (NDA) to the FDA for a novel product that leverages and synergizes the benefits of metformin and glybenclamide, a unique and proprietary formulation of a member of a class of drugs known as sulfonylureas. Bristol-Myers Squibb has also submitted an NDA for Glucophage XR Extended Release Tablets, a once-daily version of Glucophage. Glucophage, as an adjunct to diet and exercise, helps lower blood sugar by decreasing hepatic glucose production, decreasing intestinal absorption of glucose and improving insulin sensitivity.
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