For the second time this year Inotek Pharmaceuticals says its lead drug failed a clinical study for glaucoma. And the successive flop once again hammered its shares, which plunged 48% as it spiraled into penny stock status.
The news hit on Friday, after the market $ITEK closed. The Lexington, MA-based company noted a temporary and short-lived improvement in eye pressure among patients taking a combination of trabodenoson and Xalatan (latanoprost). But the latanoprost arm improved up to the cutoff point, while the combination did not.
Inotek execs swiftly reassured investors that the troubled company is not running out of cash — with $109 million in reserves — but brought in outside advisers as they studied their “strategic alternatives.”
Inotek, founded in 1999, rang in the New Year with the disastrous news that their drug had failed a pivotal study to significantly reduce intraocular pressure against a placebo on multiple time points in the day. Investigators blamed the failure on an unexpected spike in the placebo response.
Inotek CEO David Southwell remarked:
Based on these results and the results previously reported for our Phase 3 MATrX-1 monotherapy trial, we are evaluating the future clinical potential of trabodenoson, as well as other strategic options.
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