KaloBios drops lung infection drug, shares plunge

(Reuters) - KaloBios Pharmaceuticals Inc said it would discontinue the development of its drug for lung infections in cystic fibrosis patients after it failed in a mid-stage study, sending the company's shares down 62 percent in extended trading. The company said its drug, KB001-A, did not extend the time before cystic fibrosis patients had to take antibiotics for their worsening respiratory tract symptoms. KB001-A was being developed to treat a powerful superbug, Pseudomonas aeruginosa, that causes lung infections. The drug also failed the trial's secondary endpoints of improving lung function, the company said. KaloBios and Sanofi SA ended a collaboration on the drug in July. KaloBios said on a conference call on Tuesday that it was not in a position to comment on why the drug failed as a full analysis of the data was not available yet. The company, which scrapped an asthma drug in January last year, plans to focus on its oncology program. It is currently developing a drug to treat bone marrow cancer. Cystic fibrosis is a genetic disease that causes the lungs and the digestive system to be clogged with sticky mucus. Patients also find it difficult to breath due to frequent lung infections. The company's shares closed at $1.83 on the Nasdaq. (Reporting by Amrutha Penumudi in Bengaluru; Editing by Don Sebastian and Sriraj Kalluvila)