NEW YORK (TheStreet) -- Eleven Biotherapeutics (EBIO) shares are falling, down 66.92% to $3.60 in early market trading on Monday, after the clinical stage biopharmaceutical company reported that the late-stage trial of its dry-eye disease treatment failed to meet primary endpoints.
As a result of the failed test the company said that it will not pursue a second Phase 3 trial. "Based on these top-line results, the company does not see an immediate path forward for EBI-005 in dry eye disease, and we will not be initiating the second Phase 3 study of EBI-005 in dry eye disease that we had planned to start in the second half of this year," said CEO Abbie Celniker.
The company also said that it has about $59 million in cash and cash equivalents, enough to finance its operations until the middle of 2016, according to the company's own calculations.
TheStreet has further coverage of Eleven Biotherapeutics here.
TheStreet Ratings team rates ELEVEN BIOTHERAPEUTICS INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate ELEVEN BIOTHERAPEUTICS INC (EBIO) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The area that we feel has been the company's primary weakness has been its deteriorating net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows: