Eleven Bio shares fall off a cliff as ophthalmic drug fails second phase 3 trial
- Eleven Bio's lead candidate opthalmic drug has failed a second Phase 3 trial, sending the company's stock to below $1 in Tuesday morning trading.
- EBI-005 (isunakinra), an IL-1 receptor inhibitor, had previously been studied for its effectiveness against dry eye disease in an initial phase 3 trial in May 2015. This second phase 3 study was to test the drug's efficacy in treating conjunctivitis.
- The drug's failure places Eleven Bio in a precarious financial position. The company owes Silicon Valley Bank $15.1 billion as a result of this trial's outcome. With only about $36 million on hand, Eleven Bio can fund operations through Q4 2016. Eleven Bio shares were down to just $.70 on Monday morning trading.
Eleven Bio's Chief Medical Officer, Michael Goldstein, appears determined to move forward, indicating the company will push a preclinical drug for the treatment of diabetic macular edema.
In addition, Goldstein and his peers will attempt to position isunakinra for a modified indication based on subset analysis of patients with high IL-1 production. Although the company is currently strapped for cash, going back to investors, including main venture funding group Third Rock, is not out of the question.