(Reuters) -Spruce Biosciences said on Tuesday it will wind down investments for its genetic disorder drug after it failed in a mid-stage trial, sending its shares down 18% in after-market trading.
The company will also discontinue trials studying the drug tildacerfont in adults and children with the genetic disease known as congenital adrenal hyperplasia that affects the adrenaline-producing gland.
Congenital adrenal hyperplasia affects the adrenal glands which are responsible for producing different hormones and are located at the top of each kidney.
The drug failed to meet the main goal of reducing usage of a steroid hormone known as glucocorticoid in a mid-stage trial conducted among adults with the disease.
Results from another trial, which studied the drug in adults and pediatric patients, suggested higher doses and twice-daily dosing may be necessary, the company said.
Previously, the drug had also failed to significantly reduce the levels of sex hormone precursor androstenedione in CAH patients with high concentrations.
Spruce said an evaluation of strategic opportunities and cost-reduction activities are underway.
(Reporting by Sriparna Roy in Bengaluru; Editing by Krishna Chandra Eluri)
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