Oct 13 (Reuters) – Relmada Therapeutics Inc’s (RLMD.O) experimental treatment for major depressive disorder failed a keenly anticipated late-stage study, sending the drug developer’s shares plunging 85% in premarket trading.
The drug, REL-1017, which is also the company’s lead experimental therapy in development, did not show statistically significant improvement in symptoms of depression when compared to a placebo.
Relmada said it would keep studying REL-1017 as an adjunctive or in combination with other depression drugs in its ongoing late-stage studies.
Investors are likely to lose confidence in the two adjunctive trials, Mizuho Securities analyst Uy Ear said.
Major depressive disorder is the most common chronic mental condition in the United States, according to the National Institute of Health. Patients feel low, experience guilt and worthlessness, and, in extreme cases, it may lead to suicide.
The company’s shares were trading at $4.7 premarket. They had closed at $31.69 on Wednesday.
Reporting by Khushi Mandowara in Bengaluru; Editing by Sriraj Kalluvila
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