Northstar Neuroscience shares plunge 84% after treatment fails
Northstar Neuroscience shares fell more than nearly 84 percent today after the Seattle company said it was "very disappointed" that a clinical...
Northstar Neuroscience shares fell more than nearly 84 percent today after the Seattle company said it was "very disappointed" that a clinical trial showed no meaningful advantage for stroke survivors who receive its treatment for improving hand and arm function.
The trial tested whether the company's "cortical stimulation" treatment in combination with rehabilitation therapy would lead to greater improvement than rehabilitation therapy alone. But after four weeks of treatment there was no "statistically meaningful difference," the company said in a news release today.
President and CEO John Bowers said the company had more than $80 million in cash and investments, "which we believe is sufficient to pursue other applications of our cortical stimulation therapy and further investigate" the latest trial's results.
Northstar shares closed down $6.99, or 83.6 percent, at $1.37. The stock went public in May 2006 at $15.
Copyright © 2008 The Seattle Times Company
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