Vitae Pharmaceuticals Inc has admitted that its drug has failed to reduce blood sugar levels of patients when used as an add-on therapy, raising doubts about the drugs potential- Reuters.
Vitae saw its share plummet 34% on Monday, before paring some losses to trade down 12% in morning trade.
German drugmaker Boehringer Ingeheim partnered with Vitae to develop, VTP-34072, which was tested as an add-on to treat type 2 diabetes in obese or overweight patients.
Later this year results from testing VTP-34072 as a monotherapy will be released.
Future of this drug will be decided once this data is reviewed by Boehringer Ingelheim.
Analysts, however do not have much hopes for the fate of the drug.
Unless the monotherpay trail results are outstanding, Liana Moussatos, a Wedbush analyst, does not think the drug will continue to be tested.
The drug is purpose is to target an enzyme, which produces a hormone called cortisol, which increases blood sugar and helps in breaking fat.
Analysts like Thoma Shrader, Stifel analyst, do not have much hope for the monotherapy trails either, comparing it to failed drugs like Incyte Corp’s diabetes drug, which has a smiliar purpose as VTP-34072
Shrader went on to add that Incyte also did a trial on the same target, the data looked satisfactory but they stopped the program. “A chemistry company will always be at the mercy of the targets it uses.”
This is second bad news for Vitae, as back in February, trails of its drug for Alzheimer’s also went on hold.
Vitae are also developing drugs for autoimmune diseases.
The stock was down 12 percent at $13.36 in morning trading on the Nasdaq.