Xoma says diabetes drug candidate failed to lower blood sugar in clinical trial; stock falls
On Tuesday March 22, 2011, 7:24 pm EDT
BERKELEY, Calif. (AP) -- Xoma Ltd. said Tuesday a potential diabetes treatment failed to lower blood sugar in a clinical trial.
The Berkeley company's stock crumbled on the news, falling 38 percent in extended trading.
Xoma said a random group patients with Type 2 diabetes from a pool of 421 were treated with the drug candidate Xoma 052 over six months.
But at the end of the trial, the patients who received the drug did not show a greater reduction in blood sugar than those treated with placebo, the company said. As a result the Phase IIb trial did not achieve its primary endpoint, the main goal of a clinical trial.
Still, patients who received Xoma 052 did show significant declines in C-reactive protein, a tell-tale sign for risk of heart attack, stroke and other cardiovascular diseases, Xoma said.
In addition, the trial showed a statistically significant improvement in high-density lipoprotein, or "good" cholesterol, for patients treated with Xoma 052 in two of four dose groups versus those given a placebo, the company noted.
Xoma 052 also appeared to be safe, consistent with previous trials, the company said.
Management said that, despite the test results on lowering blood sugar, the drug's anti-inflammatory and heart-healthy effects reinforce plans for further development for the treatment of Behcet's uveitis, a swelling of the uvea, which is the middle layer of the eye.
The company anticipates it will start Phase III development this year, pending the completion of discussions with regulators.
Xoma also expects to take the drug into clinical development for cardiovascular disease next year.
Shares in Xoma tumbled $1.92 to $3.10 in aftermarket trading. The stock added 28 cents, or nearly 6 percent, to $5.02 during the regular session.
