Ergo Science suffers another blow as Ergoset crashes in obesity

Ergo Science's beleagered drug Ergoset (bromocriptine) has taken anotherhammering with the release of Phase II data from a trial to evaluate its efficacy in the treatment of obesity. However, the firm's share price did not change on the day of the announcement (July 9), remaining steady at $1.19, and barely wavered throughout trading early the following week.

The drug failed to meet its clinical endpoint to determine whether Ergoset (2.4mg and 4.8mg), given once a day in addition to a 25% calorie-restricted diet, would result in greater weight loss than treatment with diet and placebo.

The company says that while both groups lost weight during the trial, there was no statistically-significant difference between patients in the Ergoset plus diet group and those in the placebo plus diet group. Around 300 clinically-obese patients were enrolled in the six month trial, a period of time at which one would normally expect to observe peak weight loss. Ergo Science says that it is continuing to analyze the data from this study, and points out that a strong safety profile is apparent. However, it is hard to see how much longer the company can continue to fund the development of this drug, although it has a healthy bank balance. As of March 23 this year, the last figures available, Ergo had cash, cash equivalents and short-term investments of $31.9 million. No representative from the company was available to discuss its current cash position or the future of Ergoset.