Celsus Chief Executive Gur Roshwalb said he was "surprised" by the
number of patients who responded to a placebo.
The cream, MRX-6, is being developed to treat atopic dermatitis, or
eczema, a chronic skin rash or inflammation that often appears in
infancy or childhood. The cause of the disease is unknown.
The National Institutes of Health estimates that eczema affects
between 9 and 30 percent of the U.S. population.
Current treatments for the condition include corticosteroid creams
and ointments, with antibiotics being prescribed if the rash follows
an infection.
Celsus said earlier that MRX-6 would be a safer and more effective
alternative to corticosteroids, which are often associated with
behavioral changes, weight gain, high blood sugar and diabetes.
Earlier tests of the cream, MRX-6, found it to be safe and effective
for use in adults. The trial results announced on Tuesday showed
that the drug failed to replicate that success in children.
Celsus said it would analyze the data from the trial and determine
the next steps for the drug, its lead compound.
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The company's pipeline includes a compound to treat eye problems. It
also has two drugs in the animal-testing stage.
Celsus' stock was down 80 percent at $1.20 on the Nasdaq on Tuesday.
(Reporting by Vidya L Nathan in Bengaluru, Editing by Simon
Jennings)
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