Corcept Therapeutics Inc said it would stop a late-stage trial of its lead product, a depression drug, after an interim analysis suggested the study was unlikely to be successful, sending its shares down 51 percent.
The drug, mifepristone, was being developed for treating psychotic symptoms in patients with major depressive disorder. It was the company's most advanced experimental drug.
The analysis of data from the first 226 patients enrolled in the trial showed that the drug failed to significantly reduce psychotic symptoms.
An independent safety committee analyzing the data advised that continuing the study was unlikely to provide a positive result.
Corcept said it decided to stop the trial to focus on more promising programs, particularly in oncology. The company is testing mifepristone in advanced breast cancer patients in an early-stage trial.
Corcept has one approved product on the market, Korlym, used for treating patients with Cushing's syndrome, a condition resulting from excess hormone cortisol in the body and leading to problems such as weight gain, insomnia and depression.
The company's shares were at $1.95 in early trading on the Nasdaq on Wednesday.
(Reporting by Esha Dey in Bangalore; Editing by Kirti Pandey)