Shares of Ista Pharmaceuticals Inc., an Irvine eye drug developer, continued to plunge on Wednesday, a day after the company said that clinical trial results for a new version of its flagship Xibrom drug were disappointing.
The company’s shares fell 36% Wednesday were down nearly 4% in afterhours with a recent market value of $43 million.
Xibrom QD, a once-per-day drug for eye inflammation after cataract surgery, was Ista’s hopeful to replace an earlier version of the drug, twice-per-day Xibrom.
The trial showed both drugs were effective in alleviating eye inflammation and that Xibrom QD showed no difference in eliminating pain versus Xibrom.
Thomas Weisel analyst Donald Ellis said in an Associated Press story that Ista gets some 70% of its revenue from Xibrom.
Weisel also said that the Food and Drug Administration is unlikely to approve Xibrom QD based on the latest study data, although Ista could try to have Xibrom’s label changed to allow for once-daily dosing.
Ista also said on Tuesday that it hired financial adviser Cowen & Co. to evaluate opportunities for the drug maker, including potential mergers and acquisitions that would allow the drug maker to grow.
The company had said in a release that it has been approached “from time to time regarding business combination opportunities” and that Cowen would work with it in looking at those situations.
Ellis said that means Ista is probably considering selling itself.
