Valeant Pharma, Actavis PLC, Neck And Neck With Bowel Disorder Drugs

Valeant Pharmaceuticals International Inc.

and Actavis plc

each obtained regulatory approval for separate treatments for irritable bowel syndrome accompanied by diarrhea, the companies said Wednesday. Valeant, whose Salix unit obtained the approval, may have a jump on Actavis in the market. Valeant's Xifaxan is already approved and on the market for treating hepatic encephalopathy, a potentially fatal liver disorder. Xifaxan had been Salix biggest seller prior to its $11.2 billion acquisition by Valeant last month and has been reportedly widely prescribed as an off-label treatment for iritable bowel syndrome. The Actavis treatment, called Viberz, isn't expected to get launched until the first quarter of 2016 and still requires classification by the U.S. Drug Enforcement Administration. Regulators have recommended a controlled substance designation for Viberz from the DEA. As many as 35 million adult Americans may experience IBS, and 40 percent of those patients also suffer from diarrhea, according to Valeant. Activis says about 15 million adult Americans, including about twice as many women as men, may benefit from its product. The cause of the disease is unknown but symptoms are thought to result from a disturbance in interaction between the gastrointestinal tract and nervous system. Activis' new product helps "address the most bothersome symptoms" of the disorder said company research chief David Nicholson. Valeant's treatment, similarly "may alleviate symptoms" according to Costas H. Kefalas, a researcher quoted by the company. Despite the recent approvals, Neither Valeant nor Activis shares were moving very dramatically on Wednesday. Valeant traded recently at $240.26, up $1.14; Activis changed hands at $311.59, up $4.80.