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 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).


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 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.

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