Ergo Science Corp., already reeling from an FDA rejection of Ergoset for diabetes, said the drug failed to demonstrate statistical significance in a Phase II trial in obesity.

Ergoset, an oral formulation of the dopamine-receptor antagonist bromocriptine, was being tested in a six-month trial in 300 clinically obese patients. Ergoset and a calorie-restricted diet were tested against placebo and diet. There was no statistically significant difference in weight loss between the groups.

The FDA sent Ergo, of Boston, a letter in November saying Ergoest was not approvable for treating Type II diabetes because of a questional risk-benefit profile. Then its partner, Johnson & Johnson, of New Brunswick, N.J., opted out of the collaboration. Finally, in December, Ergo cut about half its staff.

An analyst at SG Cowen Securities Corp. said at the time that failure in the obesity trial would spell the end for the company. (See BioWorld Today, Dec. 17, 1998, p. 1.)

Ergo officials could not be reached for comment.

The company's stock (NASDAQ:ERGO), which lost most of its value with the earlier setbacks, closed Monday at $1.093 per share, down 9.37 cents. - Jim Shrine