Eleven Bio shares fall on failed study of eye drug


Save Story

Estimated read time: 1-2 minutes

This archived news story is available only for your personal, non-commercial use. Information in the story may be outdated or superseded by additional information. Reading or replaying the story in its archived form does not constitute a republication of the story.

NEW YORK (AP) — Shares of Eleven Biotherapeutics Inc. plunged Monday after the clinical-stage biopharmaceutical company said its key drug candidate failed to meet its goals in a late-stage study.

The Cambridge, Massachusetts-based company is developing EBI-005 as a treatment for dry eye disease. The condition involves a lack of adequate moisture for a person's eyes. The drug candidate failed to meet both of its key treatment goals in the study.

The stock fell $8.63, or 72 percent, to $3.33 in premarket trading.

"We are disappointed that our Phase 3 study in dry eye disease did not meet its primary efficacy endpoints, but we are encouraged that we continue to see a favorable tolerability profile for EBI-005," said President and CEO Abbie Celniker, in a statement.

The company said it will focus on continuing development of the drug candidate for potential use as an allergic conjunctivitis treatment. It will not start another late-stage study focusing on dry eye disease that it had planned for later this year.

Eleven Biotherapeutics said it currently has about $59 million in cash and cash equivalents, which it expects will finance its current plans into the second half of 2016. The company has about $15 million in debt.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Most recent Business stories

Related topics

Business
The Associated Press

    STAY IN THE KNOW

    Get informative articles and interesting stories delivered to your inbox weekly. Subscribe to the KSL.com Trending 5.
    By subscribing, you acknowledge and agree to KSL.com's Terms of Use and Privacy Policy.

    KSL Weather Forecast