Alteon Corp. stock sank $2 a share on Tuesday after thecompany was reported to have said that the next phase of long-term clinical trials of its drug to treat diabetic nephropathywas delayed by the FDA.
The stock (NASDAQ:ALTN) closed at $11 a share. The FDA alsorequested additional data on clinical trials of aminoguanidinebefore a Phase II/III trial could start, according to a report onthe Reuter's news service. Alteon had hoped to start a PhaseII/III trial of aminoguanidine this summer.
Alteon of Northvale, N.J., was asked last month by the FDA formore detailed summaries of two Phase I clincial trialsinvlving its drug aminoguanidine, which is aimed at reversingthe the complications of diabetes and aging. That news lastmonth and an analyst's downgrade sent the stock down 30percent in value during a three-day period that startingJuly.20. Alteon went public at $15 a share last November.
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