Karo Bio (STO: KARO) has decided to scrap its lead product candidate eprotirome after a 12-month animal study showed cartilage damage from long-term use. The company received a recommendation from Eprotirome’s steering committee to discontinue the ongoing phase III study in dyslipidemia/HeFH. Earlier short-term animal studies did not show such an effect and the company says that patients on the human trial have received the drug for a far shorter period.
The program was supposed to go on until 2014 with previous cost estimate of 300 million SEK. For 2011 about 100 million was spent on it. Karo Bio is taking a 55 million SEK wind-up charge. The company assesses that financing of operations is in place for at least further 12 months. The company halts planned sale of preclinical operations in nuclear receptors field and plans to focuse on those. The stock has shed 70% in minutes after it was opened for trading.
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