Jim Shrine

Telor Ophthalmic Pharmaceuticals Inc. saidWednesday it is dropping development of its drugXarano because a Phase III study showed that itfailed to reduce or prevent intraocular pressurespike any better than placebo.

There were no statistically significant differencesseen in either of two treatment groups vs. placeboin the primary and secondary endpoints. The multi-national trial involved about 450 patients who weregiven a high or low dose of Xarano (ethacrynatesodium), or placebo, following intraoculartreatment.

Telor's stock (NASDAQ:TELR) fell 78 cents, or 52percent, to close Wednesday at 72 cents per share.

The setback was the second in nine months forTelor, of Wilmington, Mass., which reported inNovember that Phase II trials of Tekron _ a topicaleye formulation of ethacrynic acid _ failed to showefficacy vs. placebo in reducing intraocularpressure. The company also discontinueddevelopment of that drug.

John Herdklotz, acting president and CEO of Telor,told BioWorld Today that the company is assessingits options on going forward. The company reportedsecond-quarter financial results Wednesday thatshowed Telor had $7.4 million in cash with a netloss of $1.6 million for the quarter.

"At this point we have all the strategic possibilitiesunder study," Herdklotz said. Telor's lead programnow is the development of EY-128, which thecompany said Wednesday completed a Phase I/IIstudy for use in the prevention or reduction ofmiosis.

The company also has preclinical programs inocular allergy and in glaucoma. Telor has 26employees and 7.6 million shares outstanding. n

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