Shares in Albany Molecular took a beating after it emerged that drug giant Bristol-Myers Squibb has pulled the plug on development of its experimental antidepressant.

The group's stock fell more than 22% in the aftershock of the pharma giant's decision to call time on two mid-stage studies of the drug, dubbed BMS-820836, after it failed to show any benefit over two other antidepressants, duloxetine and escitalopram. 

In an SEC filing, Albany said it had been notified by B-MS that two Phase IIb studies had failed to meet their endpoints, and so, along with a third safety study, were being discontinued.

Albany Molecular entered into a license agreement with B-MS back in 2005, and its chief executive Thomas D'Ambra told Reuters that BMS-820836 was the most advanced therapy in a suite of four candidates included in the deal. 

However, the decision will not have an impact on forecasts for the third quarter and 2013, Albany said.

Further data from the trials will be unveiled by B-MS at an appropriate scientific forum/publication in future, and the companies are in continued discussions over plans for other compounds and leads part of the alliance, according to the filing.