NEW YORK ( TheStreet) -- Shares of Omeros Corp. ( OMER) plummeted in late trades on Thursday after the Seattle-based biotech reported disappointing late-stage clinical trial results.

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).

EXFO Inc.

Shares of EXFO Inc. ( EXFO) slumped after the closing bell after the Canadian maker of networking testing equipment issued a below-consensus outlook for the current quarter.

The company said it sees earnings of 1 to 5 cents a share in its fiscal third quarter ending in May on revenue of between $67 million and $72 million. The forecast includes 4 cents per share in costs related to amortization of intangible assets and stock-based compensation.

The current average estimate of analysts polled by Thomson Reuters, which typically excludes items, calls for earnings of 11 cents a share in the quarter on revenue of $73.2 million.

The stock was last quoted at $10, down 8.5%, on volume of around 75,000, according to Nasdaq.com. Based on a regular session close at $10.93, the shares were up more than 80% in the past year, although they'd pulled back since hitting a 52-week high of $13.19 on March 8.

EXFO reported earnings of $1.7 million, or 3 cents a share, for the fiscal second quarter ended Feb. 28 on sales of $72 million, noting that it's grown sales on a sequential basis for six straight quarters, a streak that's threatened by its outloook.

Krispy Kreme Doughnuts

Krispy Kreme Doughnuts ( KKD) posted a net loss of $1.5 million, or 2 cents a share, for its fiscal fourth quarter ended Jan. 30 late Thursday, and said it plans to raise prices this year to reflect higher commodity costs.

The stock lost nearly 12% after the closing bell to $6.20 on volume of almost 250,000, giving back some of the more than 65% gain it's seen in the past year.

Revenue for the fourth quarter totaled $91.7 million, falling short of the average estimate of analysts polled by Thomson Reuters for revenue of $92.6 million.

"Not surprisingly, commodity costs are poised to rise significantly compared to fiscal 2011, and we are therefore implementing various price increases to largely offset higher input costs.," James Morgan, the company's president and CEO, in a statement.

Krispy Kreme said it plans to open 5 to 10 company stores, 5 to 15 domestic franchise stores, and more than 30 international franchise stores in its current fiscal year.

-- Written by Michael Baron in New York.

>To contact the writer of this article, click here: Michael Baron.

>To submit a news tip, send an email to: tips@thestreet.com
Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

If you liked this article you might like

Portola Shares Lower After Update on Anticoagulant Launch -- Biotech Movers

Portola Shares Lower After Update on Anticoagulant Launch -- Biotech Movers

5 Small Biotechs Receive Shots in the Arm

5 Small Biotechs Receive Shots in the Arm

5 Small Biotechs Receive Shots in the Arm

5 Small Biotechs Receive Shots in the Arm

Housing Stocks Will See Demand Boost

Housing Stocks Will See Demand Boost

Don't Panic About Biotech

Don't Panic About Biotech