Shares in Tranzyme Pharma plummeted 76 percent Thursday after the RTP-based company announced failure of a drug that it hoped would treat diabetics suffering from gastroparesis.
Tranzyme (Nasdaq: TZYM) announced the failure of its TZP-102 compound in one of two Phase 2 clinical trials before the markets opened.
At the opening bell, the bottom fell out.
Tranzyme shares closed at 95 cents from Wednesday’s close of $3.97.
The company said the trial “did not meet its primary efficacy endpoint.”
However, another trial with a different dosage is still underway.
“We are understandably disappointed with the results of this trial; however, our second Phase 2b trial known as DIGEST is ongoing,” said Tranzyme Chief Executive Officer Vipin Garg in a statement. “In DIGEST we are evaluating a 10 mg dose of TZP-102 administered three times daily before meals, rather than once daily as in the trial just completed. We anticipate announcing top line results for DIGEST in the first half of 2013,.”
Tranzyme recently raised $10 million through a stock offering.
The failure is the second this year for Tranzyme.
Tranzyme Pharma is a late-stage biopharmaceutical company focused on discovering, developing and commercializing novel, mechanism-based therapeutics for the treatment of upper gastrointestinal motility disorders.
