Albany Molecular Research's (AMRI) stock fell more than 10% on Monday after announcing in an SEC filing that it was informed by its partner Bristol-Myers Squibb that it would terminate the development of an investigational depression drug.
But the decision to cease the drug’s development, which was in Phase II of clinical development, is expected to “have no impact on AMRI’s financial guidance or forecasts, including, the company’s financial guidance for the third quarter and full year 2013,” AMRI said.
The partnership between AMRI and BMS began in 2005 and has been a source of revenue for AMRI in the past due to payments for research and milestones reached on some compounds.
The drug in question was a triple reuptake inhibitor in development for treatment-resistant depression.
The announcement of the trial’s end comes as the company recently received a Form 483 at its Burlington, Massachusetts, plant after the US FDA re-inspected it.
Despite these setbacks, AMRI CEO Thomas D’Ambra said last week in an earnings call that the company still expects to be profitable by the end of the year.