Dallas, Texas 07/28/2015 (Financialstrend) – Bioline RX Ltd (NASDAQ:BLRX) felt the wrath of the street after announcing that its injectable heart drug failed a key clinical study. The stock shed more than 15% in market value as it became clear that the company was far off from receiving the much-needed approval for the drug. The Israeli-based company had partnered Bellerophon Therapeutics Inc (NASDAQ:BLPH) to develop the treatment.
Minimal Approval Chances
A point of concern at the moment is the fact that Bioline RX Ltd (NASDAQ:BLRX) had invested over $10 million on the trial. The study carried out on 303 patients on different clinical sites failed to show any difference compared to patients who were administered with a placebo. Failure of the key clinical study jeopardizes any chances of the device getting the much-needed approval in Europe.
Despite the disappointment, Bioline RX Ltd (NASDAQ:BLRX) maintains its true value depends on its ability to continue advancing a deep in-house pipeline of mid-late stage assets. The company’s CEO, Dr. Kinneret Savitsky expects the ongoing collaboration with Novartis AG (ADR) (NYSE:NVS) in expanding the BL-8040 oncology platform to offset the disappointments on the heart disease drug.
Minimal Long-term Impact
The outcome of the clinical study should have minimal impact on Bioline RX Ltd (NASDAQ:BLRX) business GOING forward according to the executive. The company has already reported positive safety efficacy results on Phase 1 study of BL-8040 seen as a novel stem cell mobilization treatment for transplantation
Bioline RX Ltd (NASDAQ:BLRX) plans to meet with the Federal Drug Administration to sort out the modalities on how the next steps in the clinical development program will be carried out. BL-1040 is an investigational implantable medical device being studied for the treatment of heart failure. Bioline RX Ltd (NASDAQ:BLRX) had licensed the device to Bellerophon in 2009 and has until now received $17 million as part of an ongoing licensing agreement.