SciClone Pharmaceuticals, Inc. (SCLN)

[mlkrborn]

SciClone drug fails in Hepatitis C study
The Associated Press - AP - Wed Dec 15, 4:11PM CST
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SCLN - Sciclone Pharmaceuticals Inc.
Sym Last Chg Pct SCLN 3.66 -0.33 -8.27%

SciClone Pharmaceuticals Inc. said Wednesday that its drug candidate SCV-07 failed to meet its key goal of treating Hepatitis C in a midstage study, prompting a cancellation of the program.

The company said the study was aimed at providing an estimate of whether SCV-07 could be a potential treatment for Hepatitis C, which is a viral condition that damages the liver.

"Although the data showed an interesting biological signal, due to the rapidly changing landscape of effective treatments which increase the complexity and risks of developing drugs in chronic Hepatitis C, we have decided not to continue development in this indication," said President and CEO Friedhelm Blobel, in a statement.

In March, the drug candidate failed in a midstage study on oral mucositis, which is an inflammation of the digestive tract. It is a common side effect of patients undergoing chemotherapy for head and neck cancer.

The company plans to start another midstage study in 2011 aimed at oral mucositis involving higher doses of the drug candidate.

Shares of SciClone fell 79 cents, or 19.8 percent, to $3.20 in afterhours trading, after falling 9 cents to close at $3.99 during the regular trading session. The stock has traded between $2.08 and $4.50 over the last 52 weeks.