Phytopharm views options, including merger, as Cogane fails

UK-based Phytopharm (LSE: PYM: London Stock Exchange), ahead of its annual general meeting today (March 27) stated that, following the disappointing Phase II clinical trial with its Parkinson’s disease drug candidate Cogane (PYM 50028), it has initiated an update on the on-going strategic review of the company’s options, which could include a merger or acquisition of the firm.

The news saw an initial 3.3% rise in the company’s stock price to 1.55 pence, but this morning the shares declined 5.2% to 1.47 pence, giving the company a market capitalization of £5.1 million ($7.8 million).

Last month, Phytopharm’s shares plummeted 80% to 2 pence, after the company announced negative results of the Phase II, randomized, double blind, placebo controlled, dose-ranging trial of Cogane (in unmedicated patients with early-stage Parkinson’s disease (CONFIDENT-PD; The Pharma Letter February 18). Analysis of the headline results indicated that Cogane had no beneficial effects on patients’ symptoms measured by the primary or secondary endpoints in the study.
A full analysis of the complete dataset has now been completed which confirms the initial view that no efficacy was demonstrated in the primary or secondary endpoints measured in the study. As a result of these findings no further R&D expenditure will be committed and a staff reduction and cost saving programme has been initiated.