After Tetralogic Pharmaceuticals Corp (NASDAQ:TLOG) took the decision to stop the progress of the Birinapant hepatitis B drug trial in its phase 1 due to some safety issues, the company has suffered another blow after it plunged at the stock markets. Reportedly, the phase 1 trials involved analysis of the drug doses to fight the disease but cranial nerve palsies cases were observed that forced the company to bring the research to an end. The cranial nerve palsy causing impairing of the nerves and can cause partial weakness or paralysis in the affected nerve area and so the trial had to be called off at least for the time being.
In an official statement of the company, the pause was a temporary one, but the shares have already faced a negative impact by going down more than 30 percent. The shares of the company closed on Friday at $2.49 per share from $3.78 per share, before the news hit the market.
Also, the plans of the company to raise $25 million from the markets have also failed miserably. TetraLogic had mulled selling 6.25 million shares at the price of $4 per share at the end of this week in order to raise money to fund its ongoing clinical trials, other upcoming projects and new drug facilities. Luck was not on their side it seems and the offer was brought down.
The company said that though the hepatitis B part of the project has been called off for the time being, the Birinapant drug would continue to be developed for blood cancer and tumor cures. A combination study with the PD-1 inhibitor, Keytruda from Merck was also on. The company is also underway phase 2 trials for a T-cell lymphoma drug that started after a $13 million deal with Shape Pharmaceuticals in 2014.
With this road block, the company will have to reverse plans of developing new molecule therapeutics in oncology and infectious diseases and find other ways to get the funding. They will now have to look into their existing work and focus on getting back on the share markets.