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news.Shares in Rigel Pharmaceuticals have plummeted, loosing over 60% of their value, after the company revealed that its lead investigational allergy treatment R112 had failed to treat symptoms of hay fever in a recent mid-stage study.
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Results of the phase II clinical study of R112 showed the treatment to be no more effective than placebo in reducing hay fever symptoms. The investigation compared Rigel’s potential allergic rhinitis treatment with GlaxoSmithKline’s Beconase AQ (beclomethasone) nasal spray. The Glaxo treatment proved to be superior to both R112 and placebo.
The study, involving nearly 400 patients, evaluated symptoms such as congestion, runny nose, sneezing, itchy nose and postnasal drip. Contrary to previous results, no significant benefit was found from taking the drug. This disappointing outcome caused a stock sell off erasing nearly two-thirds of the Rigel’s market value, with share prices decreasing by 64% to $7.81.
Rigel entered into an agreement with Pfizer to develop other small molecule compounds from its respiratory range last January. The agreement included a limited option for Pfizer to license the R112 drug. At present it is unclear what effects these damaging results will have on the partnership, as R112 was seen as the most promising drug from the range.