BioDelivery Sciences International Inc.'s clonidine topical gel for the management of painful diabetic neuropathy failed to beat placebo in a phase 2b trial.

The trial failed to show a statistically significant difference in pain relief between the gel and placebo. Due to these results, the company is currently discontinuing further development of the product.

The $16 million that was to be directed to this program for 2017 will now allow the company to extend its cash runway into the fourth quarter of next year, President and CEO Mark Sirgo said in a statement.