Canada's Vasogen has halted a Phase III trial of Celacade -- an experimental drug for peripheral artery disease -- after concluding that the pharmaceutical was not very effective. Investors reacted to the news by swiftly cutting the company's stock price in half. Researchers said that they had experienced no significant safety problems. Trial data on Vasogen's lead drug candidate will be released after the company has had a chance to analyze it.
The move to halt the late-stage trial is a serious blow to the drug developer. Only weeks ago, Vasogen CEO David Elsley told the Globe & Mail that the company was preparing a 2006 launch of Celacade in Europe, with plans to open the US market in 2007. The company had doubled its work force to 180 in the past two years and spent $150 million developing the cardiovascular therapy.
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