Transcept caps a tough year with PhII drug failure
After watching its royalties from sales of the new sleep drug Intermezzo start drying up this year, Transcept Pharmaceutical ($TSPT) reported this morning that the only experimental drug it lists in its pipeline failed a mid-stage study for obsessive compulsive disorder.
The Point Richmond, CA-based biotech says that TO-2061 failed to relieve symptoms of OCD as a second-line therapy compared to a placebo arm. Now it plans to complete the analysis of the data and then decide what--if anything--it plans to do next with the program. This is the only therapy listed on the company's website for drugs in development.
"It is disappointing that the Phase II trial of TO-2061 did not meet its primary endpoint, in particular for those patients suffering from treatment resistant OCD," said Transcept CEO Glenn Oclassen. "Once we have reviewed the full data set, we will determine next steps, if any, in the clinical development program for TO-2061 for the adjunctive treatment of OCD."
Just a few days ago Transcept and its partner Purdue Pharma announced plans to roll out a big ad campaign for Intermezzo in hopes of turning around flagging sales. The sleep drug market is saturated with low-price products, making it tough to crack for any newly approved product. Transcept quarterly take slid to only $200,000 in the most recent period, which has helped push down its share price.
- here's the press release