NPS Pharma says Glaxo stops osteoporosis drug study
Sept 25 (Reuters) - NPS Pharmaceuticals Inc (NPSP.O) said its partner GlaxoSmithKline (GSK.L) (GSK.N) decided to prematurely stop a mid-stage study of an osteoporosis drug that was being developed under a collaboration agreement between the firms, sending its shares down more than 15 percent.
Glaxo decided to terminate the mid-stage study of Ronacaleret in post-menopausal women with osteoporosis earlier than expected due to an observed lack of efficacy, the biopharmaceutical company said in a regulatory filing.
The study is not being stopped due to any unexpected safety signal or concerns, Glaxo said in a letter to the company, NPS added.
Ronacaleret was being developed under a November 1993 collaborative research and worldwide exclusive license agreement with Glaxo.
Under the agreement, GSK paid NPS a total of $26.1 million. NPS will not be required to return any of the payments received.
Shares of NPS Pharmaceuticals, which closed at $8.33 Thursday on Nasdaq, were trading down at $7.00 after the bell. (Reporting by Jennifer Robin Raj in Bangalore; Editing by Pratish Narayanan)
