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You can find the current article at its original source at https://www.theguardian.com/business/2016/jun/20/biotech-circassia-shares-plummet-as-cat-allergy-study-fails
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| Biotech firm's shares plummet as cat-allergy trial fails | Biotech firm's shares plummet as cat-allergy trial fails |
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| An Oxford company hailed as a star of British biotechnology lost almost two-thirds of its stock market value on Monday after it revealed that its experimental cat allergy treatment had failed in a late-stage trial. | An Oxford company hailed as a star of British biotechnology lost almost two-thirds of its stock market value on Monday after it revealed that its experimental cat allergy treatment had failed in a late-stage trial. |
| Circassia Pharmaceuticals floated on the stock exchange in 2014 and was seen as one of the great hopes of the sector for its research into cat allergies, which affect 24 million people in the US alone. | Circassia Pharmaceuticals floated on the stock exchange in 2014 and was seen as one of the great hopes of the sector for its research into cat allergies, which affect 24 million people in the US alone. |
| Related: Scientists link allergies to hyperactive immune cells in babies' cord blood | Related: Scientists link allergies to hyperactive immune cells in babies' cord blood |
| Circassia’s treatment aimed to improve patients’ basic resistance by making their immune systems tolerate allergens. But its vaccine failed to meet the main goal in a third-phase study because of a significant placebo effect among patients not receiving treatment. | Circassia’s treatment aimed to improve patients’ basic resistance by making their immune systems tolerate allergens. But its vaccine failed to meet the main goal in a third-phase study because of a significant placebo effect among patients not receiving treatment. |
| All patients taking part in the study suffered less from itchy eyes, runny noses and sneezing. The results of those taking Circassia’s vaccine were not significantly better than those taking the placebo. | |
| Steve Harris, Circassia’s chief executive, received the findings from the clinical trials at the weekend. He said he was surprised and disappointed because earlier tests had not registered a large placebo effect. | |
| He added: “In this large-scale trial [the placebo effect] eliminated the ability to identify a treatment effect despite dramatic improvements in subjects’ allergy symptoms and rescue medication use,.” | |
| He added that Circassia would analyse the data and its implications for the company’s other allergy treatments before reporting back to investors. The company will halt work on grass and ragweed allergy treatments and concentrate efforts on asthma and respiratory products. | He added that Circassia would analyse the data and its implications for the company’s other allergy treatments before reporting back to investors. The company will halt work on grass and ragweed allergy treatments and concentrate efforts on asthma and respiratory products. |
| Circassia shares were down 64% at 96p in afternoon trading on Monday. The company sold shares on the London Stock Exchange in March 2014 at 310p each, in what was the biggest UK biotech flotation for a decade. | Circassia shares were down 64% at 96p in afternoon trading on Monday. The company sold shares on the London Stock Exchange in March 2014 at 310p each, in what was the biggest UK biotech flotation for a decade. |
| The company has received backing from prominent investors Invesco and Neil Woodford. They increased their holdings this year to 35.1% and 19.2% respectively. | The company has received backing from prominent investors Invesco and Neil Woodford. They increased their holdings this year to 35.1% and 19.2% respectively. |