The company is working with Lazard on a potential sale after its lead drug candidate disappointed in a late-stage study
Theravance Biopharma shares collapsed 26% in morning trading on Tuesday after the company said it was exploring a potential sale following the failure of its most advanced drug candidate in a late-stage clinical trial.
The company said ampreloxetine, which was being tested in patients with multiple system atrophy, a rare and progressive neurological condition that can cause a dangerous fall in blood pressure upon standing, failed to demonstrate a meaningful improvement in symptoms compared with patients receiving a placebo.
The disorder, known medically as neurogenic orthostatic hypotension when it causes blood pressure to drop on standing, represents a significant unmet medical need, and the drug had been seen as Theravance's most important near-term commercial prospect.
Following the disappointing result, Theravance said it had initiated a formal strategic review of its options, including a possible sale of the entire company, and that it had engaged investment bank Lazard to assist with the process.
The company cautioned that the review was at an early stage and that there was no certainty it would result in any transaction.