Ampio Pharmaceuticals Inc (NYSEMKT:AMPE) reported on Monday that its drug trials failed to achieve desired results. The drugs were manufactured to combat pain related to osteoarthritis. The announcement resulted to a 58% fall in the company shares.
The pharmaceutical company that is based in Englewood develops treatments for inflammatory conditions. Ampio was dealing with a drug called Ampion, which the company was testing for treatment of inflammatory pain caused by osteoarthritis. The tests which were carried out through the administration of multiple injections, upon which the results failed to yield the desired results.
The drug failed to reach its principal end point in countering the saline regulation arm. The control arm was out of the normal range spectrum. Recent trials revealed that the salinity measurements were ranging from 12% to 60%. These readings were in contrary to the previous readings that were previously recorded to range from 30% to 35%.
During the trial period, the Ampion drug was administered to the patients in 3 intra-articular doses. Alternatively the saline placebo was also used though the company claims saline is not a real placebo but rather a fractional therapeutic. The drug trials have been problematic in the past. Ampio reported that the trials done in last year’s summer were disrupted by exposure to temperatures lower than that required.
Ampio reported that the drug had failed to exhibit any noteworthy pain reduction. The drug company is making plans to hold a meeting with the FDA (Food and Drug Administration), where they will hold talks about the test results.
Ampion is not the only developmental drug in the company’s portfolio. Ampio has a new oral administration drug called Optina. The drug is currently undergoing tests for the treatment of macular edema that mostly occurs in people suffering from diabetes.
Ampio’s massive share decline might make the company lose its credibility. It could be inconveniencing to the company if investors start pulling out. The share value dropped to $2.56 after the news broke out.
