Arrowhead pulls Hep C drug study, plans staff cuts

After the U.S. Food and Drug Administration issued a clinical hold on Arrowhead Pharmaceutical clinical trials due to some animal deaths that occurred in a separate trial, the California-based company halted further development of its three leading compounds to fight hepatitis C and liver disease.

The company’s stock plunged 60% on the news, despite the fact that the company says its tests had yielded some promising results on humans being tested across 17 countries, according to the Wisconsin State Journal.

As a result, the company will cut 30% of its staff. Arrowhead has about 90 employees in Madison and 20 in California, but there’s no indication yet of how many jobs will be impacted here.