Israeli drug development companies are chalking up failures. Last week, both Pharmos Corp. (Nasdaq: PARS) and XTL Biopharmaceuticals Ltd. (Nasdaq:XTLB); TASE:XTL) announced the failure of clinical trials on their main drugs under development.
Pharmos reported that the Phase IIa clinical trial of its topical nanoemulsion drug delivery technology formulated with 3% Diclofenac Diethanolamine for the treatment of chronic pain caused by osteoarthritis of the knee failed to achieve statistical significance in either its primary or secondary efficacy endpoints. The effect witnessed did not measure up to other topical NSAID (non-steroidal anti-inflammatory drug) products already approved or currently in development in the US. The company will discontinue development of the product.
Pharmos already closed its activity in Israel at the end of October. The company's share sank to $0.13 by Friday, giving a market cap of $3.4 million. However, in contrast to XTL, Pharmos still has one card up its sleeve: Dextofisopam for irritable bowel syndrome, and it is currently enrolling patients for a Phase IIb clinical trial. It hard to imagine the company recovering, even if the trial succeeds, but a success might give it an asset to sell.
Pharmos said that is also seeking a partner for its only remaining program - the CB2 selective agonist program targeting pain and inflammation, which the company is no longer working on. In effect, the company no longer exists except as a legal entity that is waiting for the results of its last trial.
Published by Globes [online], Israel business news - www.globes-online.com - on November 23, 2008
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