Tue May 31, 2016 – Reporting by Amrutha Penumudi in Bengaluru
StemCells Inc said on Tuesday it had terminated a mid-stage trial testing its therapy in spinal cord injury and that its board had decided to wind down the company.
The company’s shares plummeted 75 percent to 75 cents in premarket trading.
The magnitude of the treatment’s effect did not justify continuing the study given the financial resources available, StemCells said.
The Newark, California-based biotech had cash and cash equivalents of about $5.5 million as of May 31.
The decision to end the trial followed an in-depth review of data from the study and after obtaining concurrence of the study’s Interim Analysis Data Monitoring Committee, the company said.
