The company of a biotherapeutic drug declared a loss as their shares plummeted when their primary drug was unsuccessful in a late stage study.
A company based in Massachusetts is producing EBI-005 to cure dry eye disease a condition where there is an insufficiency of moisture in the eyes, moisture that is vital for keeping the eyes healthy.
A source who had known the issue revealed that the new drug was unable to treat its two main treatment targets.
The company’s shares decreased from $8.63 to $3.33 in the premarket trading.
“We are disappointed that our Phase 3 study in dry eye disease did not meet its primary efficacy endpoints, but we are encouraged that we continue to see a favorable tolerability profile for EBI-005” revealed the President and CEO Abbie Celniker.
However, the company guaranteed that it will continue to concentrate on improving the new investigational drug for the possibility of curing allergenic conjunctivitis.
The company, at present, is $15 million in debt and now has an estimate of $59 million in cash and cash equivalents and anticipates that it will be capable of funding its present proposal until the later months of 2016.
A source said that the new drug, EBI-005, was tested on patients who had moderate to severe cases of dry eye disease.