Renovo shares plummet 75% as scar revision product Juvista fails to meet study endpoints

14 February 2011

Shares of UK-based biopharmaceutical firm Renovo (LSE: RNVO) plunged 75.1% to 17 pence last Friday, after the company announced that its first European Union Phase III trial for Juvista (avotermin), in scar revision surgery (REVISE) did not meet its primary or secondary endpoints. Renovo says it will conduct further exploratory analysis and determine the future of the Juvista development program.

Mark Ferguson, chief executive of Renovo, said: "We are extremely surprised and disappointed by the failure of Juvista to meet the Phase III trial primary and secondary endpoints. The board of Renovo will now consider all options open to it to maximize shareholder value."

UK drugmaker Shire (SHP.LN) has the rights to develop and commercialize Juvista in the USA, Canada and Mexico under a licensing deal with Renovo worth a potential $825-million to the latter, of which $75 million was paid up front with $525 million eligible in sales royalties (The Pharma Letter June 25, 2007).

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