* To save more than $40 mln from termination
* To use the capital to advance other programs
Jan 27 (Reuters) - Spectrum Pharmaceuticals Inc (SPPI.O) said it will stop developing its experimental treatment for enlarged prostate to cut costs and focus on other drug candidates.
The company expects to save more than $40 million from the termination of the ozarelix program and will use the capital to advance its other pipeline products.
Ozarelix, which was being developed for the treatment of benign prostatic hypertrophy, or increase in size of the prostate in middle-aged and elderly men, was in mid-stage trials.
“The mixed results of the company’s earlier mid-stage study and the recently announced failure of AEterna Zentaris’s AEZ.TO AEZS.O large, late stage, registrational trial of cetrorelix in benign prostatic hypertrophy does not support continued development in this indication”, the company said in a statement.
The company, which has seven drugs in multiple clinical trials apart from its already marketed non-Hodgkin’s lymphoma drug Zevalin and bone cancer treatment Fusilev, had reported disappointing results from a mid-stage study of ozarelix in April 2008.
The drug had failed to show statistically significant improvement compared to a dummy drug in the trial.
Shares of the Irvine, California-based company closed at $4.53 Tuesday on Nasdaq. (Reporting by Krishnakali Sengupta in Bangalore; Editing by Aradhana Aravindan)