In a terse release, the UK's Renovo said a Phase III trial for Juvista in scar revision surgery did not meet primary or secondary endpoints. The company's stock plunged 75 percent on the news. And the Wall Street Journal observes that given the poor outcome of the study, Renovo's U.S. partner Shire will likely drop its pact for the drug. In a statement the company said it will conduct further analysis of Justiva and determine the future of the drug program.
Renovo posted positive results from a Phase II trial of Juvista in 2008. Early the following year the company reported that it had received an unsolicited inquiry regarding a possible buyout, sending Renovo's stock up. But when talks fell through, the biotech was forced to restructure and cut a third of its 180 person staff.
"We are extremely surprised and disappointed by the failure of Juvista to meet the Phase III trial primary and secondary endpoints. The Board of Renovo will now consider all options open to it to maximise shareholder value."
- here's Renovo's release
- read more from the WSJ