Shares of drug-development company Tranzyme Pharma were trading 23 percent lower Monday after the company said it was halting a clinical trial of an experimental drug.
The Durham company said it was discontinuing the trial of TZP-102, an experimental treatment for debilitating gastrointestinal problems triggered by diabetes and other diseases, "due to insufficient efficacy." Last month Tranzyme shares plunged 76 percent after the company reported that the preliminary trial results showed that the drug performed no better than a placebo.
Last month CEO Vipin Garg told analysts during a conference call that Tranzyme was not giving up on the drug and noted it was in the midst of a second clinical trial that tested a different dosage and frequency -- three times daily rather than once daily. But today's announcement made no mention of the other trial, and company spokeswoman Susan Sharpe said in an email message that the company wasn't commenting further.
In March Tranzyme halted development of what had been its most advanced drug candidate, a treatment designed to restart the body's digestive functions after bowel surgery, following disappointing Phase 3 test results.
Tranzyme shares were trading at 57 cents this morning, down 17 cents. Its shares have fallen 80 percent this year.
Tranzyme went public in April 2011 at $4 a share.