• 10/12/2007
  • Bangalore, India
  • Bijoy Koyitty
  • Reuters.com

CuraGen Corp said it would discontinue the development of its oral mucositis drug candidate, velafermin, after a mid-stage trial failed to meet its main goal.

CuraGen shares fell about 35 percent to 94 cents in morning trade Thursday on the Nasdaq.

The primary endpoint was a decrease in the incidence of severe oral mucositis in patients receiving a single dose of velafermin compared to placebo, the biopharmaceutical company said in a statement.

Oral mucositis is a common side effect of certain types of cancer therapy.

The company said it would now continue to focus on belinostat, its drug candidate used to treat solid tumors and hematologic malignancies.