Tranzyme Pharma said its experimental drug to improve gastrointestinal recovery after surgery failed to meet the main or secondary goals of a second late-stage trial.
In March, the company said it would stop development of the drug, ulimorelin, after it failed earlier late-stage study.
"These results confirm the findings of the earlier study and support our earlier decision to stop all (new drug application) activities for ulimorelin," the company said in a statement.
Durham, North Carolina-based Tranzyme said in March it would now focus development on its oral drug for the treatment of diabetic gastroparesis -- a condition that causes delayed emptying of food to small intestine due to the paralysis of stomach muscles.
Tranzyme said on Friday that the second trial showed no statistical difference between ulimorelin and placebo groups on both of its endpoints.
The trial tested whether the drug accelerated gastrointestinal recovery in patients who had undergone partial bowel resection.
Tranzyme shares closed at $3.24 on Friday on the Nasdaq.
(Reporting by Balaji Sridharan in Bangalore; Editing by Viraj Nair)