VBL to stop developing drug for psoriasis, ulcerative colitis

Last Updated: 2015-02-17

By Reuters Staff

(Reuters) - Israel's VBL Therapeutics Inc said it would stop developing its experimental inflammatory drug to fight ulcerative colitis and psoriasis, sending its shares tumbling 45% before the bell.

The company said the drug, VB-201, failed to meet the main goal in separate mid-stage trials for the two indications.

VB-201 aims to treat chronic immune-inflammatory diseases by mimicking the body's natural anti-inflammatory response.

Separately, the biotechnology company said the U.S. Food and Drug Administration lifted a partial hold on another drug that is being tested to treat an aggressive form of brain cancer.

The biotech drug, VB-111, will be evaluated in a late-stage study in patients with recurrent glioblastoma. The hold was imposed by the agency in July, pending additional data.

VB-111 is also being tested to fight ovarian cancer and the most common form of thyroid cancer.