The value of Diurnal Group PLC’s (LON:DNL) shares more than halved on Monday after its flagship Chronocort drug failed in a late-stage clinical trial.
Diurnal had been developing Chronocourt as a treatment for people with congenital adrenal hyperplasia (CAH) – an inherited condition which affects metabolism, the immune system, blood pressure and other essential functions.
The AIM-quoted firm had been hoping to show that the treatment, designed to be taken at night to avoid a morning peak in androgen levels, was better than current therapies.
That wasn’t that case though, with Chroncourt showing no real improvement on what is already available.
“We are surprised by these results, following our previously successful Phase II clinical trial in CAH,” said chief executive Martin Whitaker.
“We will now analyse the full data set from this trial, along with interim data from the ongoing Chronocort long-term dosing study, to determine next steps in Chronocort development, and discuss these with the regulatory authorities.”
He added: “We remain confident that Chronocort will be a valuable treatment option for CAH patients.”
Shares were down 55% to 48.8p on Monday morning.