Neil Woodford-backed Circassia (CIR) has decided to make no further investments in its allergy programmes after its Phase IIb field study failed to meet its primary endpoint.
Top-line results from the speciality pharmaceutical firm’s dust mite allergy immunotherapy study revealed the treatment did not show a significant effect when compared to a placebo.
The market is taking the setback relatively well as the stock nudges 2% lower to 100.9p.
In 2016, Circassia suffered a huge setback as its Phase III trial in June proved its severe cat allergy treatment Cat-SPIRE didn’t work, prompting a halt in any significant new investment.
Following the setback, the share price plummeted by 62% 104p and has struggled to regain positive momentum since then.
Management has decided to focus on its respiratory business and continue growing its NIOX asthma management franchise.
Circassia also plans to accelerate its collaboration with AstraZeneca (AZN) concerning chronic obstructive pulmonary disease (COPD) products Tudorza and Duaklir.
In March 2017, AstraZeneca took a 14.3% stake in Circassia after the latter agreed to buy US commercial rights for the COPD products from the blue-chip pharma company.
