Celladon to suspend development of gene-therapy drug

[June 26, 2015]  (Reuters) - Celladon Corp said it would suspend further development of its gene-therapy drug for heart failure, months after the treatment failed a mid-stage trial.

The company's shares fell 34 percent to $1.34 in premarket trading. Celladon also announced a second reduction in its workforce on Friday.

The company's lead drug, Mydicar, failed the mid-stage trial in April, wiping out almost 80 percent of the company's market value.

Celladon earlier this month named Wedbush PacGrow Healthcare as its exclusive financial adviser and started a process to seek a merger or sale.

(Reporting by Amrutha Penumudi in Bengaluru; Editing by Sriraj Kalluvila)

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