Auris Medical Holding AG said its experimental drug for acute inner ear tinnitus missed the main goals of a late-stage study, sending its shares down more than 40 percent in premarket trading.
The trial did not meet the two co-primary effectiveness goals of statistically significant changes in tinnitus loudness and tinnitus burden compared to a placebo, Auris said.
However, the Swiss company said data supported the positive safety profile established in previous studies.
Auris said results from a second late-stage trial were expected in the fourth quarter.
Tinnitus, or ringing in the ears, is a symptom common to various ear or other diseases. Inner ear tinnitus may be caused by injuries to the cochlea due to loud noise or inflammation. There is no effective treatment.
Up to Wednesday’s close of $5.35, stock had risen about 9.4 percent this year.
(Reporting by Ankur Banerjee in Bengaluru; Editing by Ted Kerr and Anil D’Silva)