NEW YORK (TheStreet) -- Eleven Biotherapeutics' (EBIO) shares are poised to plummet in Monday's regular stock market session following the late-stage study failure of an experimental drug to treat dry eye disease.

The Eleven Biotherapeutics drug EBI-005 was unable to prevent damage to the cornea or reduce eye pain compared to a control, the company said Monday. The study enrolled 669 patients with moderate to severe dry eye disease. The patients were randomized to receive EBI-005 administered topically in the eye or a control for 12 weeks.

In a harbinger of what is likely to happen after the opening bell, Eleven Biotherapeutics' stock was down 81% at $2.30 in premarket trading Monday morning. The stock closed Friday at $11.97.

The company embarked on the phase III study of EBI-005 in dry eye disease despite lackluster results from a phase II study that also showed no difference in efficacy compared to a control.

On Monday, Eleven Biotherapeutics said it will no longer pursue development of EBI-005 in dry eye disease but will move ahead with plans for a phase III study of EBI-005 in allergic conjunctivitis.

Eleven Biotherapeutics went public in February 2014 at $10 a share. The stock reached $18 a share within a couple of weeks of its public market debut but then languished.

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