Edge Therapeutics Inc (NASDAQ:EDGE) plummeted 87% in New York pre-market deals after negative clinical trial news.
The share slump came after a data monitoring committee recommended that a phase 3 study of the biotech's treatment for adults with brain haemorrhage be stopped because the trial had a "low probability" of meeting its primary endpoint.
Based on this, Edge said it has decided to discontinue the NEWTON 2 study.
“We are very disappointed that the NEWTON 2 study did not demonstrate evidence of improved outcomes with EG-1962, given the positive findings demonstrated on this measure in our randomized, open-label Phase 1/2 NEWTON study of EG-1962 in a similar patient population,” said Brian Leuthner, Edge’s chief executive.
"We are grateful for the support and commitment from the participating patients, their families, study investigators and their teams, and the aSAH community,” added Dr R Loch Macdonald, Edge’s chief scientific officer.
Edge will assess the next steps for the company, but expects to reduce the scope of its operations, including the workforce, to preserve cash, which stood at US$88.1mln as of 31 December 2017.
Shares shed over 91% to US$1.32 each.