Shares in Danish biotechnology company, NeuroSearch A/S, lost almost half its value yesterday as partner Boehringer Ingelheim said it would not proceed with Phase III trials of NS2330, one of the company’s most promising drugs, in the treatment of Alzheimer’s and Parkinson’s disease after three earlier studies failed to show sufficient benefit. However, there could still be a light at the end of the tunnel. Although Boehringer has decided to terminate the development of NS2330 in Alzheimer’s, it is keeping its options for Parkinson's disease open and is assessing possible options for its use in other indications.

Clearly investors were less than pleased, but the company is hoping the share price will recover - because Boehringer is responsible for the drug’s financing, the decision has no impact on NeuroSearch’s financial guidance for 2005, nor on its other activities, it said.