XenoPort Inc said it will stop developing its experimental multiple sclerosis treatment after data from a late-stage trial showed the drug did not improve patients' condition significantly compared with a placebo.
Shares of the company were down 28 percent at $4.85 before the bell.
The company said it would shut down all activities related to the drug, arbaclofen placarbil, and planned to provide an update on the impact of the expected savings.
The drug did not show statistical significance compared to the placebo on two clinical scales - severity of symptoms and response to treatment, and spasticity.
The drug, which was intended to treat spasticity, stiffness and involuntary multiple spasms, was tested on 228 multiple sclerosis patients in the United States.
Dosages of 30 mg and 45 mg of the drug administered twice a day were compared to the placebo group.
XenoPort said seven patients experienced adverse events, none of which were related to the treatment.
The company spent about $13.2 million in 2012 on the development of the drug, according to a regulatory filing.
XenoPort had stopped the development of arbaclofen placarbil as a heartburn drug in March 2011, after it failed in a mid-stage trial. (link.reuters.com/hab38t) (Reporting by Esha Dey and Vrinda Manocha in Bangalore; Editing by Roshni Menon)