AtheroGenics Drug Misses Goal

AtheroGenics (AGIX Quote) tumbled nearly 60% early Monday after the company said a Phase III clinical study of its lead drug candidate failed to reach its primary endpoint, showing no difference when compared with a placebo.

Shares sank $4.58 to $3.25 recently.

The company said even though AGI-1067 missed its main target, it did meet a number of other important predefined endpoints. These included a reduction in the composite of "hard" atherosclerotic clinical endpoints, composed of cardiovascular death, heart attack and stroke, as well as an improvement in several key diabetes parameters, including glycemic control.

Despite the setback, AtheroGenics plans to continue to pursue opportunities for the development of AGI-1067.

AtheroGenics and AstraZeneca (AZN Quote) have a worldwide collaboration covering the development and commercialization of the drug. After the final analysis of the study results is completed, AstraZeneca will have 45 days to decide whether to continue with the arrangement.