(Reuters) – Relmada Therapeutics said on Monday it would discontinue the two late-stage studies planned for the development of its depression drug and explore strategic alternatives including a sale.
Its shares rose 6.3% to 48 cents in premarket trade.
The stock fell more than 70% last week after the company said its depression drug, esmethadone, was “unlikely” to meet the main goal of a late-stage trial.
The drug was being tested in patients with major depressive disorder as an adjunct to be used along with other approved antidepressants.
Relmada said it had begun to explore strategic alternatives, without a timeline for the completion of the process.
The company had about $54.1 million in cash and its equivalents as of Sept. 30. Its market cap is $13.9 million.
Relmada said it will continue to test its metabolic disease treatment REL-P11, which is currently in early-stage development.
(Reporting by Christy Santhosh in Bengaluru; Editing by Sriraj Kalluvila and Devika Syamnath)
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