The answer is expected in the next few weeks, when the little pharmaceutical company releases results of a closely watched Phase 3 trial of a drug to fight heart disease. Data should be shown at the American College of Cardiology meeting March 24 through 27 in New Orleans.

The company posted a wider loss this morning, but there was no study news. Meanwhile, Adam Feuerstein of TheStreet.com writes that the prospects don’t look very good.

The drug “is a great story, but it doesn’t appear headed to a happy ending.”

“The problem is the drug’s phase II data, written up in full and released last month as an “in press” article in the medical journal Atherosclerosis. These data paint a different picture of a drug that doesn’t reduce arterial plaque to any significant degree when compared with control patients, and raises the level LDL, or “bad” cholesterol, while also lowering levels of HDL, the “good” cholesterol. It doesn’t seem possible that a drug with a profile like that will be able to improve the cardiovascular health of patients,” which is what the drug must do to succeed.

So far, investors haven’t gotten terribly enthused. The stock is trading at about $11.45 this morning, down more than 3 percent, and well below its 52-week high of $16.76, but also above the 52-week low of $9.15.
[tags]AtheroGenics[/tags]