Kindred Bio Goes To The Dogs; Lead Drug Candidate Washes Out
Kindred Biosciences (NASDAQ: KIN) shares plunged more than 30 percent in Thursday's pre-market action after one of its three lead veterinary drug candidates washed out in a pivotal test.
The treatment for canine osteoarthritis, CereKin, failed to meet the study's goal of controlling pain and inflammation. The company blamed results on "a higher-than-expected placebo response rate and statistical variability."
The study cost $4 million, leaving Kindred with capital of about $100 million. Chief Executive Richard Chin called that amount "ample" to fund further drug development.
"The critical part of our business model is that we are taking a portfolio approach and the results from any single program have a limited impact," Chin said in a statement.
Kindred's other two lead drug candidates are also in pivotal studies and assuming success, are slated for market introduction next year. Those include AtoKin treatment for canine dermatitis, and SentiKin, postoperative pain in dogs.
Other drugs in Kindred's pipeline include treatments for horse fever, cat anemia and dog cancer.
Kindred traded recently at $10.22, down 28 percent.
Even with Thursday's drop, Kindred shares are up 27 percent year to date.
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