Coronado Bio's Pig Parasites Fail Crohn's Study

BURLINGTON, MA (TheStreet) -- Swallowing the tiny live eggs of pig parasites doesn't help treat Crohn's disease. Coronado BioSciences'  (CNDO) experimental (and frankly, disgusting) drug CNDO-21 blew up Monday as the company announced failed results from an important phase II study. 

Coronado shares fell 69% to $1.80 in early trading. The stock lost almost 14% on Friday, a harbinger of Monday's bad news.

CNDO-021 contains the live eggs of a parasite found in the excrement of pigs. When swallowed, the eggs hatch and grow into tiny whipworms which were supposed to stimulate a persons immune system and fight off inflammatory auto-immune diseases like Crohn's.

Except CNDO-021 doesn't work. Crohn's symptoms of patients treated with CNDO-021 failed to respond any better than patients treated with a placebo, Coronado said. 

The company blamed the negative study results on a higher-than-expected placebo response, which is typically the lame excuse offered when a drug simply doesn't work. 

-- Reported by Adam Feuerstein in Boston.

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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.

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