Axcan drug flunks Phase III trial

Shares of Canada's Axcan Pharma tumbled 31 percent this morning after the drug developer announced that an experimental therapy for functional dyspepsia had flunked a pivotal Phase III trial. Researchers said that Itopride failed to hits its primary endpoint and did not confirm signs of efficacy seen in a mid-stage trial. The company said it would further analyze the data along with results from a North American Phase III trial.

"We are obviously surprised with the results of the Itopride international Phase III trial, particularly in view of the positive results seen in the soon-to-be published Phase II trial and in the preclinical data that provided strong mechanistic support for Itopride," president and CEO Frank Verwiel said in a release.

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