The company said its phase III trials of OMS103HP, a drug being developed to improve joint motion and reduce pain following arthroscopic anterior cruciate ligament (ACL) reconstruction surgery, failed to meet pre-specified endpoints.
The stock was last quoted at $4.95, down 38%, on volume of around 66,000, according to Nasdaq.com. Based on a regular session close at $8, the shares were up 19% in the past year.
"Given the strength of the data from previous clinical studies of OMS103HP, we are obviously disappointed and surprised by the outcome," said Greory Demopulos, the company's chairman and CEO, in a statement. "Our analysis of the data does not demonstrate a lack of drug effect nor does it appear to undermine the viability of our Phase 3-ready OMS103HP program for meniscectomy surgery."The company said it plans to further analyze the OMS103HP data, and that it plans to announce additional information about its plans for the product in the future. Prior to the news, Wall Street was pretty positive about the shares with the seven analysts covering the stock at either strong buy (5) or buy (2).