Shares in Icagen plunged more than 24 percent on Wednesday following news that the company was terminating a Phase III clinical trial for its lead drug candidate.
Icagen (NASDAQ: ICGN) closed at $1.39, down 45 cents. The price actually improved over the course of the day after hitting $1.25 in after-hours trading Tuesday night.
Last August, Icagen first announced problems with the drug, which was to treat sickle cell disease in adults. That news led to a more than 70 percent drop in Icagen shares.
Icagen made the decision to end the trial for “senicapoc” based on the recommendations of an independent data monitoring committee. The committee “recommended that the trial be terminated because of the low probability of achieving a reduction in crisis rate, the primary endpoint,” Icagen said in a statement.
Last August, the committee advised Icagen to stop enrollment of some subjects in the trial.
“The Company will analyze final data when available and consider future options for the development of senicapoc,” Icagen said.
The drug was being developed in partnership with McNeil Pediatrics Division, which is part of Johnson & Johnson.