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LONDON (Alliance News) - Shares in N4 Pharma PLC dropped on Thursday as the company said it will close its Generic unit after the failure of Sildenafil trials.
Shares in the pharmaceutical company were trading down 36% at 4.28 pence each.
In July, the company said that its Sildenafil reformulation clinical trial has not met its key target endpoints.
Sildenafil is a medication used to treat erectile dysfunction and pulmonary arterial hypertension.
The company said it received the full clinical trial report which "shows that the technical difficulty in achieving the required fast onset product profile for sildenafil is much higher than originally anticipated".
As a result, it decided to close the generics division as the costs and risks of undertaking other trials exceed the opportunities.
The company decided to focus on Nuvec, its delivery system, for which it expects first results in the fourth quarter.
Chief Executive Officer Nigel Theobald said: "Whilst the decision to close the generic division is clearly disappointing, it has not been taken lightly and the Board remains very optimistic about the potential for Nuvec and believes it is right to focus on this, as we increasingly believe, bigger opportunity."
Meanwhile, in a separate statement the company said that its interim loss narrowed to GBP526,221 compared to GBP1.4 million as it did not occur any deemed costs of acquisition versus GBP1.0 million a year ago.
Looking ahead, N4 is said the board remains "very optimistic" about the future of the company and its prospects.