Normally, when a drug candidate gets to Phase 3 testing, something good is likely to happen to the company involved. For Eiger Biopharmaceuticals (NASDAQ:EIGR), however, that wasn’t the case. The company plunged almost 70% in today’s session thanks to some rather disappointing news.
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Reports noted that Eiger’s Ionafarnib underwent its Phase 3 D-LIVR studies, and what emerged was not what Eiger wanted at all. Ionafarnib targets chronic infections connected to HDV (hepatitis delta virus).
The tests, meanwhile, offered up good news and bad. The good news was that both branches of the study offered “statistical significance over placebo,” which suggests that the drug had some effect. The study was staged in two parts. One part used a protease inhibitor called ritonavir, and one featured an interferon called peginterferon alpha. Thus, any positive effect is good news.
However, the bad news was somewhat worse. In every case where Ionafarnib was used—whether with the protease inhibitor or with the interferon—elevated numbers of patients stopped taking the treatment.
In fact, even in the best case, the news was disastrous. When compared to a placebo, four times the number of patients stopped treatment on Ionafarnib as compared to a placebo. Severe adverse events were also an issue.
