PTIE goes on WATCH LIST
Periodically positions on our recommendation list will go on our watch list.
We are currently still holding this position for the time being. We are looking for support
We will be following closely and advise of any action that needs to be taken.
Shares of Pain Therapeutics tumbled more than 22% at one point in the session before closing down 19% at $6.90.
Earlier, the South San Francisco, Calif.-based drug developer said that a Phase III clinical trial for Oxytrex failed to show the drug was significantly less addictive statistically than Oxycontin, known generically as oxycodone. Pain Therapeutics (PTIE: pain therapeutics inc co.
PTIE had been testing the drug on patients suffering from pain caused by osteoarthritis.
The company said it believed a high drop-out rate among the study's 775 participants skewed the results. While the company expected a dropout rate of up to 40%, up to 60% of the participants ended up dropping out of a major segment of the trial.
Pain Therapeutics said it would discuss the trial's methodology with Food and Drug Administration officials early next year.
The company added that the disappointing results will not affect its recently announced collaboration with King Pharmaceuticals (KG:
Earlier this month, King announced it would invest up to $400 million in Pain Therapeutics' late-stage drug candidate Remoxy, a version of oxycodone that's harder for users to abuse.
Once again, we will be watching this position closely.