IP Group tumbles as portfolio company Pulmocide ends study for lead product

(Sharecast News) - IP Group slumped on Wednesday after it said portfolio company Pulmocide has decided to end the Phase 3 study of its opelconazole product for the treatment of invasive pulmonary aspergillosis (IPA). Biopharmaceutical firm Pulmocide, in which IP Group has a 12% holding valued at £28.1m, will be conducting a thorough review of the unblinded data from the trial to determine potential next steps for the program, it said.

"As a result, the group expects to significantly reduce the carrying value of this asset and will conduct further work as part of the year end process to fully evaluate the appropriate level of this adjustment," the company said.

"IP Group benefits from a strong pipeline of new and maturing companies, as well as a number of valuable licences, and remains confident of delivering meaningful returns for shareholders over the medium term."

In a separate statement, Pulmocide said the decision to end the study was based on an interim analysis which showed a numerically lower favourable response rate and a numerically higher mortality rate in the opelconazole arm compared to the control arm.

The study enrolled patients who were severely immunocompromised, most of whom had a life threatening underlying haematological malignancy or were recipients of a stem cell or solid organ transplant.

At 1425 GMT, shares in IP Group - which invests in breakthrough science and innovation companies - were down 4.7% at 56.50p.