(Reuters) - Biopharmaceutical company MediciNova Inc said its experimental asthma drug failed to meet the main goal of a second mid-stage trial, sending its shares down as much as 51 percent in extended trade.
MediciNova, which is testing MN-221 as a treatment for acute asthma attacks not responsive to standard therapy, said the drug showed no improvement when compared with a placebo.
MN-221 looks to treat the condition by bypassing constricted airways to deliver the drug directly into the lungs. It aims to improve FEV1 ratio when compared with a placebo.
FEV1 ratio measures volume of air exhaled in the first second.
The trial, however, demonstrated a reduction in hospital admissions when MN-221 was added to standard treatments, the company said in a statement.
MediciNova, which said there were three serious adverse events in the trial, plans to continue development of the drug.
Shares in the San Diego, California-based company fell 51 percent to $1.35 in extended trade. They closed at $2.75 on Wednesday on the Nasdaq.
Reporting by Balaji Sridharan in Bangalore; Editing by Sriraj Kalluvila