Zalicus drops Synavive RA drug after disappointing Ph IIb results

US biotech firm Zalicus (Nasdaq: ZLCS) saw its shares plunge nearly 40% to $0.84 in afternoon trading Monday, after saying it would discontinue further development of its rheumatoid arthritis (RA) drug candidate Synavive (prednisolone/dipyramidamole).

The decision followed release of top-line results from its randomized, double-blind, placebo-controlled, Phase IIb clinical trial of Synavive which failed to achieve a key secondary endpoint, although the primary endpoint was met.

Dropping Synavive, once viewed as having blockbuster potential, has left the firm reliant on its in-house pain programs as well as prednisporin, a conjunctivitis drug licensed to Sanofi, commented analysts at EP Vanatge, noting that the drop in the share price wiped $73 million off Zalicus’ market capitalization, which is now hovering at just below $100 million.