Penwest has dumped its research project on its PW2102 beta blocker for angina and high blood pressure after the FDA issued a 'nonapprovable' letter for the therapy. The news took a bite out of the company's stock. Last April, Penwest licensed marketing rights to the therapy to Prism Pharmaceuticals for $4 million.
"We are very disappointed by the FDA's decision," said Robert J. Hennessey, president and CEO of Danbury, Connecticut-based Penwest. "We have concluded that given these circumstances it is not in the best interests of our Company and our shareholders to continue with the additional activities we believe would be required for this product. We are continuing the development of the other product opportunities in our portfolio and are pleased with the progress we are making in developing compounds targeted at diseases of the central nervous system."
- read this report from the AP for more