EpiCept Corp. lost one-third of its market value Wednesday after announcing late-stage test results for its experimental pain killer patch did not meet expectations.


Shares of the pharmaceuticals company plunged 94 cents, or 33 percent, to $1.92 in Nasdaq trading.

The company's LidoPain analgesic patch, which primarily targets back pain, recently completed Phase III trials in Europe. The patch, which releases a dose of the painkiller lidocaine, is also designed for surgery patients recovering from suture wounds.


The tests were conducted on 440 patients who underwent surgery to repair hernias, according to a statement released by the company after markets closed Tuesday.


Test results showed LidoPain was not statistically more effective in relieving pain than the placebos given to some of the patients.


CEO Jack Talley said in a statement that the company was "disappointed" LidoPain did not meet its trial goals, particularly since the product had tested well in earlier European trials.


"A thorough analysis of the trial results has been initiated and our findings will serve as the basis for our decision on next steps for this product candidate," Talley said.


The product has yet to reach late-stage trials in the U.S., the company said.


EpiCept had been privately held until January, when it merged with publicly traded Maxim Pharmaceuticals Inc. of San Diego. Shares of the combined company hit a high of $12 on their first day of trading, but the stock has slipped steadily since then.


On Aug. 30, EpiCept announced it had received a $10 million loan to help move along its pipeline, which, in addition to LidoPain, includes the Leukemia drug Ceplene and EpiCept NP-1, its prescription painkiller cream.