Shares of Italy's BioXell SpA went into a dive this morning when the developer said that its experimental lead therapy for overactive bladder, Elocalcitol, failed a mid-stage trial. And the developer immediately announced plans to cut costs, starting with a move to shelve drug studies.
"In light of the top-line OAB results and the current financial climate, our short-term objective is to focus our spending very carefully and ensure strict cost control," Chief Financial Officer Niels Ackermann said in a statement. BioXell reported today that it lost close to 15 million euros last year. And it also reported that due to the trial failure it would look to internal and external projects with an eye to beefing up its pipeline.
The good news is that BioXell has $57 million in cash and negotiables, enough money to continue at its current burn rate for three years, according to analysts. The bad news is that a trial failure at this juncture almost certainly eliminates any quick prospect of a drug partnership that could have fattened its account. BioXell shares plunged 26 percent on the news.
The primary endpoint of the trial-which recruited 257 patients--was to evaluate the effect of Elocalcitol on bladder volume at the first involuntary detrusor contraction, following 4 weeks of treatment.
- here's the BioXell release