Shares of Pain Therapeutics were sent into a tailspin this morning after the developer announced that the FDA wanted more data on the pain therapy Remoxy--which is partnered with King Pharmaceuticals--before it would approve a marketing application.
In a statement, the companies reported that the FDA "believes additional non- clinical data will be required to support the approval." No new clinical trials will be required for Remoxy, which is designed to provide the same active ingredient as OxyContin in an abuse-resistant form.
"Pain Therapeutics and King Pharmaceuticals remain diligently committed to their strategic alliance to develop and commercialize Remoxy and other abuse-resistant pain medications," the companies said in the statement.
That wasn't the news that investors wanted to hear, though. Pain stock plunged 29 percent and King shares slid 7 percent on the news.
- read Pain Therapeutics' release