Schering-Plough Corp. (SGP)

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Schering-Plough Ends Novacea Partnership
Wednesday April 9, 10:27 am ET
Schering-Plough Ends Partnership With Novacea on Failed Cancer Drug Candidate

SOUTH SAN FRANCISCO, Calif. (AP) -- Schering-Plough Corp. has ended its partnership with Novacea Inc. after their prostate cancer drug candidate Asentar failed, Novacea said Wednesday.

Novacea shares plunged 40 cents, or 14.8 percent, to $2.31 in morning trading. The stock has traded between $2.20 and $17.25 over the last 52 weeks.

The companies ended a late-stage study of the drug in November, citing an "imbalance" of deaths. Patients taking the drug candidate died more often than those taking a standard treatment.

In January, Novacea said it is exploring "strategic options" and retained Cowen and Co. as an adviser.

All Asentar rights will be returned to Novacea. Despite the higher-than-expected number of deaths, the company said it still believes Asentar is a safe drug and called Schering-Plough's decision unexpected.