INTERNEURON PHARMACEUTICALS INC
8-K, 1997-07-15
PHARMACEUTICAL PREPARATIONS
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                       SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

                                    FORM 8-K

                                 CURRENT REPORT


                       Pursuant to Section 13 or 15(d) of
                        the Securities Exchange Act 1934




Date of Report:  July 15, 1997



                        INTERNEURON PHARMACEUTICALS, INC.
- --------------------------------------------------------------------------------
               (Exact name of registrant as specified in charter)


                                    DELAWARE
- --------------------------------------------------------------------------------
                 (State of other jurisdiction of incorporation)


        0-18728                                            043047911
 ----------------------                         -------------------------------
(Commission File Number)                       (IRS Employer Identification No.)


One Ledgemont Center, 99 Hayden Avenue, Lexington, Massachusetts         02173
- ----------------------------------------------------------------       --------
(Address of principal executive offices)                              (Zip Code)


Registrant's telephone no. including area code:  (617) 861-8444
                                                  -------------





ITEM 5.  OTHER EVENTS
         ------------

         On July 15, 1997,  Interneuron  Pharmaceuticals,  Inc. (the  "Company")
reported  preliminary  results  of the  Company's  recently  completed  Phase  3
clinical trial for citicoline in the treatment of ischemic stroke.

         Reference is made to the  Company's  press  release dated July 15, 1997
filed as Exhibit 99.1 hereto and incorporated by reference herein.



ITEM 7.  FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
         ------------------------------------------------------------------

         (c)    Exhibits

                99.1     Press Release dated July 15, 1997


                                       -2-




                                   SIGNATURES

         Pursuant to the  requirements  of the Securities  Exchange Act of 1934,
the  registrant  has duly  caused  this report to be signed on its behalf by the
undersigned hereunto duly authorized.

                                      INTERNEURON PHARMACEUTICALS INC.


                                      By:  /s/ Glenn L. Cooper
                                           -------------------------------------
                                           Glenn L. Cooper, M.D.
                                           President and Chief Executive Officer

Dated:  July 15, 1997

                                       -3-





CONTACT, AT (617) 402-3410:
         GLENN L. COOPER, M.D.                     WILLIAM B. BONI
         PRESIDENT AND CEO                         VP, CORP. COMMUNICATIONS

                         INTERNEURON PHASE 3 CITICOLINE

             STROKE TRIAL SHOWS SIGNIFICANTLY IMPROVED NEUROLOGICAL

              FUNCTION IN PATIENTS WITH MODERATE TO SEVERE STROKES

                 COMPANY PLANS TO SUBMIT NDA BEFORE END OF YEAR

LEXINGTON, MA, July 15, 1997 - Interneuron Pharmaceuticals,  Inc. (NASDAQ: IPIC)
today  announced  that a preliminary  analysis of the  company's  second Phase 3
trial for oral  citicoline  500  milligrams in the treatment of ischemic  stroke
showed significantly improved neurological function among patients with moderate
to severe strokes. In addition, the drug was well tolerated.

STUDY DESIGN
- ------------

Patients  over 18 years old with no upper age limit who met entry  criteria were
entered  within 24 hours of their  stroke in a 2 to 1  randomization  to receive
citicoline  500  milligrams  or placebo  orally  once  daily for six weeks.  Two
hundred  sixty-seven  patients  received  citicoline  and 127 patients  received
placebo.  The primary outcome analysis of this double-blind,  placebo-controlled
trial of 394 patients was  improvement  in the Barthel Index, a 100 point rating
scale of functional capabilities in neurological patients, at a time point three
months after an ischemic stroke. Other secondary outcome measures were assessed.
To account for baseline  differences in stroke  severity,  the primary  analysis
requires that 3-month  Barthel scores be adjusted for stroke  severity using the
NIH Stroke Scale.

The NIH stroke scale rates  patients  from 0 to 42 points for maximum  severity.
Patients  enrolled in the study were  required to have an NIH Stroke Scale score
of 5  or  greater.  Patients  were  considered  to  have  achieved  complete  or
near-complete  functional recovery if they achieved a Barthel score of 95 or 100
at three months. Analysis of data was performed on an intent to treat basis with
assessments  made using two methods:  patients who completed the study and had a
three-month  observation  point  (observed  cases,  or OC analysis) and patients
whose last recorded scores were carried forward to the 3 month point, regardless
of their study completion (last observation carried forward, or LOCF analysis).

                                    - MORE -





                                      - 2 -
STUDY RESULTS
- -------------

In a responders analysis, 41 percent of citicoline-treated  patients with an NIH
stroke scale on entry of greater than or equal to 8 (moderate to severe strokes)
achieved a Barthel  Index of greater  than or equal to 95 compared to 25 percent
of  placebo-treated  patients  (OC  analysis,  p = 0.02).  Thus,  patients  with
moderate to severe  stroke  treated  with  citicoline  had a 64 percent  greater
chance of complete or near-complete  recovery relative to patients with moderate
to severe  stroke  treated with  placebo.  In the LOCF  analysis,  33 percent of
moderate  to severe  citicoline  patients  and 21 percent of  moderate to severe
placebo  patients  achieved a Barthel Index of greater than or equal to 95, a 57
percent increased chance of improvement in recovery (p = 0.05).

Overall, patients who had mild strokes on entry into the study (NIH Stroke Scale
5  through  7) had an  excellent  clinical  outcome  regardless  of  placebo  or
citicoline  treatment.  For example,  approximately  80 percent of patients with
mild strokes who received placebo and a similar percentage of citicoline-treated
patients with mild strokes  achieved a Barthel score of greater than or equal to
95 at three months.

There was an unexpected highly significant  baseline imbalance in the percentage
of placebo  versus  citicoline-treated  patients  who had mild  strokes on study
entry (34 percent for placebo vs. 22 percent for citicoline (p = 0.006),  due to
chance. The study was influenced by the significant  preponderance of mild cases
in the  placebo  group.  As a result of this  imbalance  and  other  statistical
factors,  the primary  analysis of the study,  the distribution of Barthel Index
scores in citicoline vs. placebo-treated  patients as a function of baseline NIH
Stroke Scale scores, did not achieve  statistical  significance.  However,  this
primary  analysis was  statistically  invalid because the patient  imbalance and
other  statistical  factors failed to satisfy the  requirements  for the correct
operation of the statistical model.  Therefore,  a  protocol-defined  responders
analysis,  percentage  of patients who achieve a Barthel  Index  greater than or
equal to 95, among patients with moderate to severe  strokes,  was employed (see
results above).

In another  protocol-defined measure of functional clinical outcome, the 6-point
Rankin scale of physician-rated  global assessment was utilized.  A Rankin score
of 0 or 1 at  study  completion  indicated  complete  or  near-complete  lack of
disability.  Among  patients  with  moderate  to severe  strokes,  24 percent of
citicoline-treated  patients vs. 11 percent of placebo treated patients achieved
a Rankin score of 0 or 1, a 127 percent improvement in outcome (OC analysis, p =
0.02).  In the LOCF  analysis,  19  percent  of  moderate  to severe  citicoline
patients  and 11 percent of moderate  to severe  placebo  patients  had a Rankin
scale of 0 or 1, a 73 percent improvement in outcome (p = 0.08).

Other secondary outcome measurements involving the Barthel Index, Rankin and NIH
stroke scales, duration of hospitalization,  and neurocognitive ratings have not
yet been analyzed.
                                    - MORE -





                                      - 3 -

Preliminary  safety review  indicated that citicoline was well tolerated.  There
did not appear to be any  medically  serious  adverse  events  that  differed in
frequency from  placebo-treated  patients.  Minor  gastrointestinal  complaints,
though  relatively  infrequent,  appear  to have  occurred  more  frequently  in
citicoline  versus  placebo  treated  patients.  A previous  study  indicated an
increased incidence in dizziness and accidental  injuries in  citicoline-treated
patients.  However,  in  the  present  trial  there  did  not  appear  to be any
differences in dizziness or accidental injuries between drug and placebo-treated
patients. The mortality rates for drug-treated and placebo-treated patients were
identical (18 percent in each group).

"We are  pleased  that  this  Phase 3 trial of  citicoline  500  milligrams  has
confirmed the clinical  importance of this novel oral medicine in the therapy of
patients with moderate to severe strokes," said Glenn L. Cooper,  M.D. president
and CEO of  Interneuron.  "Stroke is a  devastating  illness with few  treatment
options,  causing  disability  in  hundreds  of  Americans  every  day.  An oral
medication  that can be given  within 24 hours  after a stroke  without  fear of
serious   side-effects   could  give  physicians  and  patients  a  welcome  new
therapeutic option.

"We believe that we have a strong,  persuasive data package upon which to base a
New Drug  Application  (NDA)  with the FDA and  intend to file that  application
before the end of the year," said Dr. Cooper.  "We believe there is a compelling
consistency of positive  clinical  outcomes using multiple  assessment scales in
multiple clinical trials.

"The NDA will  include data from our two pivotal U.S.  trials,  supporting  data
from a Japanese clinical trial conducted by Takeda Chemical Industries, Ltd. and
supportive  clinical and  post-marketing  data from more than 20 countries where
citicoline  has already been  approved for the  treatment of stroke,"  added Dr.
Cooper.  "In  addition,  we continue  to expand our  clinical  database  with an
on-going U.S.  multi-center  pivotal trial exploring  reduction in brain infarct
size  and  functional  improvement  in  citicoline  vs.  placebo-treated  stroke
patients using sophisticated brain imaging techniques.  We also plan to initiate
further  studies  beginning  this  fall to  explore  areas  such as  post-stroke
learning and memory,  combination with thrombolytic therapies and other clinical
paradigms  such  as  treatment  or  prevention  of  peri-operative  strokes  and
treatment of head trauma."

Interneuron  previously licensed U.S. and Canadian  commercialization  rights to
citicoline from Grupo Ferrer, a leading Spanish pharmaceutical company which has
marketed  citicoline  for several  years.  Ferrer,  Takeda and others  currently
market  citicoline  in more than 20  countries.  Interneuron  retains  marketing
rights to citicoline in the U.S. and

                                    - MORE -





                                      - 4 -

Canada. The use of citicoline to treat a variety of neurological  conditions was
discovered by Dr.  Richard J. Wurtman,  scientific  founder of  Interneuron  and
Cecil  H.  Green  Distinguished  Professor  at the  Massachusetts  Institute  of
Technology (MIT). The patent is held by MIT. Other use patents are pending.

Interneuron  Pharmaceuticals is a diversified  biopharmaceutical company engaged
in the development and  commercialization of a portfolio of products and product
candidates primarily for neurological and behavioral  disorders.  Interneuron is
also developing products and technologies, generally outside the central nervous
system  field,   through  four  subsidiaries:   Intercardia,   Inc.  focused  on
cardiovascular  disease;  Progenitor,  Inc. focused on  developmental  genomics;
Transcell Technologies,  Inc. focused on carbohydrate-based drug discovery;  and
InterNutria, Inc. focused on dietary supplement products.


Except for the descriptions of historical facts contained  herein,  this release
contains  forward-looking  statements that involve risks and  uncertainties,  as
detailed from time to time in Interneuron's SEC filings under the Securities Act
of 1933  and the  Securities  Exchange  Act of 1934  under  "Risk  Factors"  and
elsewhere.   Actual  results  could  differ   materially  from  those  currently
anticipated  due to a number of factors  including risks relating to the product
commercialization  of Redux,  such as  regulatory,  marketing,  safety,  patent,
product liability,  supply and other risks;  uncertainties  relating to clinical
trials;  risks  relating to product  launches  and managing  growth;  government
regulation, dependence on third parties for clinical development,  manufacturing
and marketing, competition and other risks.

                                       ###






                                      - 5 -

                             BACKGROUND INFORMATION

REVIEW OF FIRST PIVOTAL STUDY
- -----------------------------

Interneuron's  initial  pivotal  study of  citicoline  in stroke was  previously
reported in 1996.  Findings from that Phase 3 trial were  presented on March 28,
1996 at the 48th Annual  Meeting of the American  Academy of Neurology  and have
been accepted for publication by the journal Neurology.

In that trial,  259 patients with ischemic  stroke were enrolled within 24 hours
following  the onset of  symptoms.  The  average  time from onset of symptoms to
initiation  of treatment  was  approximately  14 hours.  Patients  were randomly
assigned  to  receive  placebo or one of three  oral  doses of  citicoline  (500
milligrams,  1000  milligrams or 2000  milligrams  daily) for six weeks and were
monitored for an additional six weeks.

The  primary  efficacy  outcome  in the study was  improvement  in  neurological
function,  as assessed by the Barthel Index. Among all patients who received 500
milligrams daily of citicoline, 53% achieved a score of greater than or equal to
95 on the Barthel  Index at 12 weeks,  indicative  of complete or  near-complete
recovery  from stroke,  compared  with 33% of placebo-  treated  patients,  a 61
percent   improvement  in  outcome  (p  less  than  or  equal  to  0.04).   This
significantly  greater improvement can also be expressed as the probability that
for every 100 stroke patients  treated with 500 milligrams of citicoline  within
24 hours of symptom  onset,  approximately  20 more would  achieve  complete  or
near-complete recovery than if treated with placebo.

As previously  reported,  patients in both the 500 milligram and 2000  milligram
groups  exhibited   significantly  greater  (p  less  than  or  equal  to  0.05)
improvement on the Barthel Index at week 12 than  placebo-treated  patients.  In
addition, more patients in the 500 milligram and 2000 milligram groups exhibited
normal or near normal scores in mental  function (p less than or equal to 0.04),
as measured by the Mini-Mental  State Exam,  which grades the cognitive state of
patients.

Also,  patients who received 500  milligrams of citicoline  daily were more than
twice as likely to  manifest  minimal  or no  disability  at 12 weeks  following
stroke as patients who received  placebo,  as measured by the NIH Stroke  Scale.
The NIH Stroke Scale analysis showed that 34% of all citicoline-treated patients
versus  16% of  placebo-treated  patients  achieved  complete  or  near-complete
normalization of function,  as indicated by scores 0 to 1, at 12 weeks following
stroke, a 125 percent improvement in outcome (p less than or equal to 0.04).

In addition, global neurologic status, assessed by the Rankin Scale mean scores,
was  significantly  improved  (p less  than or equal to  0.04)  with  citicoline
treatment compared to placebo.

                                    - MORE -




                                      - 6 -

Efficacy  outcome  measures  for the 1000  milligram  daily  group did not reach
statistical significance in this trial. Patients in the 1000 milligram group had
higher  body  weight on  baseline  entry  into the study  compared  to the other
treatment groups and a significantly  higher proportion of chronic  pre-existing
cardiac and pulmonary  disorders.  These  confounding  variables may explain the
performance of the 1000 milligram group in the trial.

It was also reported that a small  subgroup of patients were studied at the Beth
Israel  Hospital in Boston with a specialized  imaging  technique to measure the
size of the infarct,  or damage caused by the stroke.  Analysis of this group of
patients  suggests  that  citicoline  treatment  limited  the  size  of  infarct
following  interrupted  blood flow. A larger trial to confirm this finding is in
progress.

There was no  significant  difference  in the  incidence of death among the four
treatment groups in the trial.  All doses of citicoline were well tolerated,  as
indicated  by  analyses  of adverse  events and  laboratory  findings.  The only
statistically  significant differences among citicoline-treated  patients versus
placebo-treated  patients were an increase in dizziness and accidental injuries,
e.g.,  falling down.  However,  the 500 milligram dose citicoline  group did not
significantly differ from the placebo group in these parameters.

Given the  degree  of  effectiveness  of the 500  milligram  daily  dose and the
absence of  significant  differences in adverse events between this dosage level
and placebo,  500  milligrams  daily appears to be the optimal dose derived from
this study and was the dose chosen for the new study reported today.

NEUROCOGNITIVE FINDINGS
- -----------------------

Neuropsychological  test findings among patients recovering from ischemic stroke
who  participated  in the first  Phase 3  clinical  trial  also  demonstrated  a
significant improvement in the cognitive function of those patients who received
citicoline

The findings, previously presented at the 22nd International Joint Conference on
Stroke and Cerebral Circulation of the American Heart Association on February 8,
1997,  demonstrated  that  patients who were given 500  milligrams of citicoline
within 24 hours following the onset of stroke symptoms and  continuously for six
weeks thereafter scored statistically significantly higher on a battery of tests
measuring  learning  ability  and  memorization  skills  than did  patients  who
received placebo.

                                    - MORE -




                                      - 7 -

The  neurocognitive  tests  administered  in this trial  included  the  Folstein
Mini-Mental State Examination,  the Hopkins Verbal Learning Test, Span Tests and
Trailmaking  Tests. In all of these tests,  patients receiving 500 milligrams of
citicoline  daily achieved  statistically  significantly  higher scores than did
placebo  patients at time points  ranging from three to twelve  weeks  following
stroke (p less than or equal to 0.05).

TAKEDA LONG-TERM MORTALITY DATA
- -------------------------------

On April 7, 1997,  Interneuron  Pharmaceuticals,  Inc. announced a data transfer
pact with Takeda  Chemical  Industries,  Ltd.  that  provided  Interneuron  with
primary   data  from  a  previously   unpublished   long-term   clinical   trial
demonstrating  improved  functional  recovery and reduced mortality among stroke
patients who received  citicoline as compared to those who received placebo in a
double-blind fashion.

The  Company  believes  the  Takeda  clinical  trial  data will be an  important
supportive  study  to  complement  Interneuron's  two  U.S.  pivotal  trials  of
citicoline in ischemic  stroke.  In the Takeda study,  citicoline was given at a
dose of 1000 milligrams per day intravenously for two weeks.

Takeda,  which markets  citicoline in Japan and other  countries,  conducted the
study among 267 ischemic stroke patients to evaluate  functional  improvement up
to four months and  mortality  rates  within one year after a stroke.  The study
demonstrated  significant  functional  improvement  at 4 months  after stroke as
measured by a physician-based  global  assessment  ratings similar to the Rankin
scale used in the US studies (p less than or equal to 0.05) and a  reduction  in
mortality within one year of approximately 50 percent in the citicoline group (p
= 0.01).

"The Takeda  study is a valuable  addition to our internal  database,"  said Dr.
Cooper,  "While there are differences in the dosage, route of administration and
duration of therapy of citicoline in the Japanese study versus the U.S. studies,
we believe the clear efficacy and mortality benefit in the Takeda trial supports
the utility of citicoline in stroke."

                                    - MORE -





                                      - 8 -

MECHANISM OF ACTION
- -------------------

Citicoline  is believed to have  multiple  mechanisms  of action which may limit
stroke- induced brain damage:

       -  limiting  the  extent  of the  infarct,  or  tissue  damage  caused by
          interrupted  blood flow, by preventing the  accumulation of toxic free
          fatty acids;
       -  promoting  recovery of brain  function by  providing  two  components,
          cytidine  and  choline,  required  in  the  formation  of  nerve  cell
          membranes;
       -  promoting  the   synthesis  of   acetylcholine,   a   neurotransmitter
          associated with cognitive function.


                                       ###



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