Edge Therapeutics Inc. said it will discontinue a phase 3 study testing EG-1962 as a treatment of aneurysmal subarachnoid hemorrhage, which causes bleeding inside the brain.
The decision was based on the recommendation of the trial's independent data monitoring committee, which said the data from the first 210 subjects in the study showed a low probability of success.
The committee added that there were no safety concerns regarding EG-1962.
The Berkeley Heights, N.J.-based company is planning to downsize its operations and cut its workforce to preserve its cash resources which were $88.1 million as of Dec. 31, 2017.
The company's stock price was down 87.36% on the news to $1.97 per share in pre-market trading March 28.