Glaxo ends study on NPS osteoporosis drug

In a Securities and Exchange Commission filing, NPS said the Phase II clinical trial on Ronacalaret will end prematurely, though payments already received on the program will not have to be returned. The companies started collaborating in 1993 and NPS has received $26.1 million in license fees, research support, milestone payments and equity purchases under the deal.

"GlaxoSmithKline has not communicated to the company a decision with respect to their continuation of other research and development activities under the agreement," NPS said in the filing.

Osteoporosis is a disease which reduces bone density and strength, increasing the risk for bone fractures. Ronacalaret was being developed for treatment of the condition in post-menopausal women. Overall, global sales of osteoporosis drugs exceeded $8.9 billion in 2007, according to health data company IMS Health.

Shares of Bedminster, N.J.-based NPS closed at $8.33 Thursday while shares of U.K.-based GlaxoSmithKline closed at $44.44.