Shares of Tranzyme slumped nearly 22 percent after the company said it would end a mid-stage study of a treatment for diabetic gastroparesis because it failed to outperform a placebo.
The Durham, N.C., company said Monday the study involved three daily doses of its treatment, labeled TZP-102. Last month, the company said a once-daily dose of TZP-102 also did not work better than a placebo at treating the condition.
Gastroparesis is a condition in which the stomach takes too long to clear out food. Tranzyme has said it affects about 12 percent of people with diabetes. It causes nausea, vomiting, dehydration and difficulty digesting food.
TZP-102 is Tranzyme's most advanced drug candidate, and the company also is studying it as a possible treatment for other intestinal disorders. It also is studying another drug, TZP-201, as a treatment for diarrhea caused by chemotherapy.
Shares of Tranzyme Inc. fell 16 cents to 58 cents in premarket trading.