Memory Pharmaceuticals’ share price closed down more than 37% on the Nasdaq Stock Exchange on Friday after Swiss partner, Roche, said it had decided not to pursue the further development of two PDE4 inhibitors for psychiatric and neurological indications.

The two firms have begun discussions to determine the future of these two compounds, known as MEM 1414 and MEM 1917. The collaboration continues to work on PDE4 inhibitor back-up compounds.

The two companies first hooked up to develop memory’s PDE4 inhibitor programme back in 2002, with Roche receiving a worldwide, exclusive license to any product candidate from Memory’s PDE4 inhibitor programme. Under the terms of the deal, which were revised last summer, Roche committed to a minimum of 18 months’ funding at a cost of almost $5.3 million dollars.