Aerie Pharma's lead experimental eye drug fails late-stage study, shares crumple
Friday, April 24, 2015
Aerie Pharmaceuticals Inc lost nearly three-quarters of its value after the company said its lead experimental eye drug failed a late-stage study.
The eye drop, Rhopressa, did not lower pressure inside the eye as much as timolol, a commonly prescribed drug, the company said.
Increased pressure in the eye is often a sign of glaucoma, a condition that could lead to blindness if left untreated.
The company's stock fell to $9 in post-market trading after closing at $35.39 during regular hours. Up to Thursday's close, the stock had more than tripled since its listing in October 2013.
The failure to meet the main goal raised questions about the future of the drug.
Aerie planned to file an application by mid-2016 to market the drug.
The drug developer said Rhopressa was as effective as timolol in patients whose eye pressure was between 20 and 26 millimeters of mercury (mmHg).
But the target was for the drug to be non-inferior to timolol in patients whose eye pressure was as much as 27 mmHg.
About 80 percent of glaucoma patients have eye pressure of 26 mmHg or less at the time of diagnosis, the company said in a statement.
Aerie said it plans to start late-stage studies for another eye drug in mid-2015
reuters.com
