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BioCryst Pharmaceuticals (BCRX) announced that it expects the National Institute of Allergy and Infectious Diseases to discontinue the pursuit of a COVID-19 indication for galidesivir.

"Based on the company's ongoing discussions with the National Institute of Allergy and Infectious Diseases, part of the National Institutes of Health, a major funding partner for the program, BioCryst expects NIAID to continue their support for the development of galidesivir with a focus on biodefense threats, such as Marburg virus disease, and to discontinue the pursuit of a COVID-19 indication for galidesivir," the company said in a statement.

BioCryst revealed data from part 1 of a clinical trial of galidesivir, saying it showed that galidesivir was safe and generally well tolerated in patients infected with SARS-CoV-2, the virus that causes COVID-19. The trial was not designed or sized to demonstrate clinical efficacy and no clinical efficacy benefit with galidesivir treatment compared to placebo treatment was observed in the trial. Shares of BioCryst are down 6% to $7.80 in premarket trading.