Generic drug maker, Teva Pharmaceutical Industries Ltd confirmed that it will stop producing a depression treatment after a late-stage trial failed, according to Reuters.
The drug failed to show that it was more effective than a placebo.
Nuvigil, or armodafinil, an adjunct therapy in adults with major depression associated with bipolar I disorder was part of the third late-stage study.
The first late-stage trial showed positive results but the second trial failed.
Analysts told Reuters that the drug did not show much of an opportunity for Teva in a market where antidepressants for bipolar disorders are already readily available.
"If the trial had worked, Teva would have had to commit a lot of additional capital to compete in the market place," said Jason Kolbert, an analyst of the Maxim Group.
"Nuvigil's patent would expire in 2016 so the company would have had a very short time market the drug even if the trial had gone well," said Michael Waterhouse, analyst of Morningstar.
"The silver lining to Teva's failure is that the associated marketing expenditures now are halted and therefore, Teva can focus its capital on those priorities that represent unmet medical needs," said Kolbert.
