(Reuters) -Canada’s Xenon Pharmaceuticals said on Monday its experimental drug to treat major depressive disorder (MDD) had failed to significantly reduce the severity of the condition in a mid-stage study.
Shares of the company were down 3.2% after briefly tumbling 24% in premarket trading.
Xenon said the study tested two doses of XEN1101 in 168 patients with moderate to severe MDD, with the drug candidate showing a clinically meaningful, but not statistically significant, reduction in depressive symptoms compared with a placebo.
Stifel analyst Paul Matteis, however, said in a note that he believed the data showed the drug held some promise as a treatment for MDD despite not showing statistical significance.
“We think there’s value to be unlocked for XEN1101 in MDD,” Matteis added.
Xenon said it was actively exploring future development of the drug as a treatment for MDD. It is also testing XEN1101 in a late-stage study as a treatment for epilepsy.
The U.S. health regulator last month rejected Sage Therapeutics and partner Biogen’s pill, Zurzuvae, as a treatment for major depressive disorder, which according to the National Institutes of Health, is one of the most common chronic mental disorders in the United States.
(Reporting by Mariam Sunny in Bengaluru; Editing by Pooja Desai and Anil D’Silva)
