Biopharmaceutical company Keryx Biopharmaceuticals, Inc. (Nasdaq: KERX), reported this morning that its Phase 3 clinical trial of Sulonex for the treatment of diabetic nephropathy failed.

News of the failed trial sent shares plunging 84.4%, or $4.44 in pre-market trading, to a 52-week low of $0.82. Shares of Keryx Biopharmaceuticals have been trading in the range of $5.01 to $11.70 for the past 52 weeks.

The company said the primary objective of the study was to increase the proportion of patients that achieve therapeutic success at six months, compared with placebo over background therapy of maximal doses of ACE-inhibitors. 

Diabetic nephropathy is a progressive kidney disease that results in an increase in blood pressure (hypertension) and fluid retention in the body. It is a prime cause for dialysis in many Western countries.