Updated from 7:18 a.m.

Ophthotech (OPHT) shares fell sharply Monday after the company announced negative results from two late-stage clinical trials of its eye drug Fovista.

Fovista combined with the currently approved drug Lucentis failed to improve the vision of patients with wet, age-related macular degeneration compared to Lucentis alone.

Ophthotech shares are down nearly 85% to $5.93 in Monday trading. The stock closed Friday at $38.77 per share.

Novartis (NVS - Get Report) licensed Fovista from Ophthotech in a bid to boost declining sales of Lucentis, which has been losing market share to Regeneron Pharmaceutical's (REGN - Get Report) competing drug Eylea.

Fovista's failure removes a significant competitive overhang for Regeneron and Eylea, said RBC Capital Markets analyst Adnan Butt.

The combined analysis from the two phase III trials showed wet AMD patients treated with the Fovista-Lucentis combination therapy gained a mean of 10.24 letters on a standard eye chart at 12 months compared to a mean gain of 10.01 letters for patients receiving Lucentis alone.

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