Synairgen felt the full wrath of the market on AstraZeneca Plc (NYSE:AZN) pulling the plug on a phase II trial of its drug targeting severe Asthma. Concerns about whether the candidate would be able to meet its primary endpoint prompted the unexpected action, with the entire project now on hold awaiting analysis of additional data.
Interim Analysis Results
During the interim analysis, AstraZeneca tried to prove that the drug, AZD0412 could reduce asthma exacerbations. However, a very low number of reduced exacerbations in trial patients prompted the halting of a proposed Phase II trial.
This is not the first time that AZD9412 has failed to attain set targets in clinical trials. Prior to AstraZeneca acquiring its licensing rights, the drug failed to meet primary ends on asthma symptoms.
AstraZeneca in a statement “The interim analysis confirmed the positive safety and tolerability profile seen in previous trials…AstraZeneca will now review the data and study design before deciding on the best way forward for the program”.
Losers and Winners
The outcome of the preliminary analysis is a big blow for the UK-based pharmaceutical given that it had licensed the drug from Synairgen in 2014 in a deal worth $232 million. A complete shutdown of a Phase II trial will be a big blow for the two companies.
AstraZeneca on its part is to lose yet another source of revenue given it will have to rely on current drugs for earnings. Synairgen, on the other hand, is to receive only a fraction of the amount agreed in 2014. The company has already paid the price its stock having come under immense selling pressure shedding more than 30% in market value in the process.
It is, however, not all gloom for the giant pharmaceutical company given that it has another drug under development for the treatment of obstructive pulmonary disease.
While Synairgen took the hit on the disappointing interim analysis results, AstraZeneca stock remained unchanged in the market. Shares of AstraZeneca Plc (NYSE:AZN) were up by 0.13% in Wednesday trading session closing the day at $30.84 a share.