NPS Pharmaceuticals drops 14% as GlaxoSmithKline cuts study short
Shares of NPS Pharmaceuticals Inc. (Nasdaq:NPSP) dipped by 14% this morning on the news that drug giant GlaxoSmithKline has cut short a joint study involving Ronacaleret, a potential treatment for osteoporosis.
In a late Thursday afternoon filing with the U.S. Securities and Exchange Commission, Bedminster, N.J.-based NPS Pharmaceuticals said GlaxoSmithKline had prematurely terminated the Phase 2 study “due to an observed lack of efficacy based on lumbar spine and hip bone mineral density.”
Under the original agreement signed by the two companies, GlaxoSmithKline paid NPS Pharmaceuticals a total of $26.1 million for license fees, research support, milestone payments and equity purchases as part of the collaboration that it will not be required to pay back.
By mid-morning, NPS Pharmaceuticals is at $7.15, down $1.18 from Thursday’s close. The stock has traded as low as $3.45 and as high as $8.96 during the past 52 weeks.
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