The race to treat chronic cough is a matter of taste

Chronic cough — the kind that persists after a diagnosable illness has passed — hasn’t seen a new drug since 1958, and it sends about 30 million Americans to the doctor each year. In business terms, that mean a multibillion-dollar opportunity, and the race to make the most of it could hinge on an unsavory side effect.

Merck is in the lead with a drug called MK-7264, which could win FDA approval as early as 2021 if it succeeds in Phase 3. However, in an earlier study, Merck’s treatment succeeded at relieving cough but also altered or wiped out the sensation of taste for a majority of patients.

That could leave room for the much smaller Bellus Health, whose BLU-5937, now in Phase 2, shares a target with Merck’s drug. Bellus, which has an interesting backstory, believes its drug is more selective and thus less likely to affect taste, and it hosted an analyst eventyesterday to explain why. Bellus’s $365 million market cap suggests investors have more than a few lingering reservations, but management believes BLU-5937 has a shot.