Tranzyme Stomach Paralysis Drug Comes Up Short

RESEARCH TRIANGLE PARK, N.C. ( TheStreet) -- Tranzyme Pharma ( TZYM)reported disappointing results Thursday from a mid-stage study of a drug designed to improve digestion in diabetic patients.

The Tranzyme drug, TZP-102, failed to significantly reduce the symptoms of gastroparesis compared to a placebo, according to results from a phase IIb study.

Tranzyme shares closed Wednesday at $3.97.

Gastroparesis is a progressive disorder that causes the stomach to become paralyzed, leading to nausea, vomiting and digestion problems. In diabetic patients, gastroparesis can make it harder to take diabetes medicines, which keeps blood glucose levels under control. There are no currently approved drugs to treat gastroparesis. TZP-102 is designed to stimulate stomach movement.

Tranzyme's phase IIb study compared two doses of TZP-102 taken once daily against a placebo. After 12 weeks of treatment, all patients saw a reduction in gastroparesis symptoms but the difference between TZP-102 and placebo was small and not statistically significant.

A second phase II study of TZP-102 is underway which doses the drug three times daily. Results are expected in the first half of 2013, Tranzyme said.

-- Reported by Adam Feuerstein in Boston.

Adam Feuerstein writes regularly for TheStreet. In keeping with company editorial policy, he doesn't own or short individual stocks, although he owns stock in TheStreet. He also doesn't invest in hedge funds or other private investment partnerships. Feuerstein appreciates your feedback; click here to send him an email.