UPDATE 1-ViroPharma ends development of hepatitis C drug

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April 16 (Reuters) - ViroPharma Inc (VPHM.O: Quote, Profile, Research) said it discontinued the development of its experimental hepatitis C drug due to safety concerns.

ViroPharma, which was developing the drug, HCV-796, with Wyeth (WYE.N: Quote, Profile, Research), said it does not expect to continue to collaborate with Wyeth on future development of hepatitis C treatment candidates.

The company said the risk associated with potential liver toxicity posed too high a hurdle to merit further development of the drug.

ViroPharma halted the mid-stage trial of HCV-796 in August 2007 after some patients developed elevated liver enzymes, a warning signal for liver damage.

ViroPharma shares, which closed at $9.62 Wednesday on Nasdaq, fell 6 percent to $9.05 in trading after the bell. (Reporting by Jennifer Robin Raj in Bangalore; Editing by Vinu Pilakkott)