Genesis Research said today the second phase of a trial of its childhood eczema drug AVAC, had failed.
Development of AVAC would be stopped, Genesis said in a statement.
Data showed there was no major differences in the SASSAD (six-area, six-sign atopic dermatitis) score, which is an indicator of eczemaseverity, between patients treated with AVAC and those treated with a placebo.
The trial studied 128 children aged from five to 16 who suffered from childhood eczema. All except four completed the six-month period of clinical assessment.
The trial started in September 2003, full enrolment was achieved by the end of June 2004, and the last patient assessment was conducted in December 2004.
Genesis chief executive Stephen Hall said the trial result was disappointing but it would not have a significant impact on the company. He said Genesis was now focusing on developing a treatment for asthma and atopic dermatitis.
Last month Genesis' British partner SR Pharma revealed that trials of another childhood eczema drug, SRP299, were unsuccessful. Genesis and SR Pharma shared joint rights to -- SRP299, which was developed in Britain and AVAC, which was developed in New Zealand.
Last year Genesis' PVAC drug -- developed for the treatment of psoriasis -- also failed to pass phase two clinical trials and was discarded.
Shares in Genesis slipped 4c, or 8 per cent, to 44c in early trade today, having ranged between 42c and $1.20 over the past 12 months.
