Mumbai, Aug. 19: Glenmark Pharmaceuticals’ Oglemilast, a drug being developed for the treatment of chronic obstructive pulmonary disease (COPD), has failed clinical trials, triggering a slide in the company’s stock price.

The Glenmark stock fell 14.68 per cent to Rs 223.20 on the BSE today from Tuesday’s close of Rs 261.60. The stock touched an intraday low of Rs 216.

COPD, which is mostly the result of smoking, occurs when the airways to the lungs become narrow, thereby limiting the flow of air to the lungs.

The disease is estimated to have affected over 10 million people in the US, and a cure is a multi-billion dollar opportunity for a pharma company.

The estimated market size for this drug is at over $3 billion.

Analysts said the markets had huge expectations from this drug, and this optimism was responsible for the recent run-up in Glenmark share prices.

Glenmark had outlicensed the development of Oglemilast to Forest Laboratories in 2004, and it received $35 million (Rs 150 crore) as milestone and upfront payments.

Glenmark was the first Indian company to earn milestone payments for a new drug. The amount of $35 million will remain with the company.

“We are disappointed that Oglemilast has not been successful in this study,’’ Howard Solomon, chairman and chief executive officer of Forest Laboratories, said in a statement.

Glenmark, while accepting that the drug did not show statistically significant results in the trial, said patients at the trials were at least 40 years of age with a history of 10 or more years of smoking.

During the study period, 428 patients were chosen to receive one of the three doses of the drug.

Oglemilast, however, is being studied for the treatment of asthma, with results expected during the first quarter of 2010.