Isotechnika plunges after drug approval setback

Wed Aug 4, 2010 10:49am EDT

* FDA recommends further clinical trials for voclosporin

* Shares dive as much as 50 percent

TORONTO Aug 4 (Reuters) - Shares of Isotechnika Inc ISA.TO plummeted as much as 50 percent after news that U.S. regulators want more information from its partner Lux Biosciences Inc about its application for an eye treatment.

The U.S. Food and Drug Administration recommended an additional clinical trial in order to consider approval of voclosporin as a treatment for non-infectious uveitis, an eye inflammation.

Voclosporin, developed by Isotechnika, is also the subject of trials for use in kidney transplants and treating psoriasis.

Lux Biosciences, which conducted the trials for treating uveitis, said it was ready to start an additional clinical study.

Its voclosporin application is awaiting approval in Europe.

Shares of the Canadian pharmaceutical company tanked 7.5 Canadian cents, or 35 percent, to 14 Canadian cents in mid morning trade on the Toronto Stock Exchange. ($1=$1.02 Canadian) (Reporting by Solarina Ho)

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