plunged in early trading Tuesday after the company said a phase III clinical trial of its Lupus drug failed to achieve its goals.
Genelabs had previously received an approvable letter for the drug, Prestara, from the Food and Drug Administration, based on a completed one-year phase III clinical trial. The FDA, however, also asked for another clinical trial to confirm those results.
The company said it plans to continue its analysis of the data from the follow-up study and meet with the FDA to determine its next steps.
Shares in the Redwood City, Calif.-based company fell $2.05, or 79%, to 54 cents in premarket trading.