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flag FDA rejects Aldeyra’s dry eye drug due to inconsistent efficacy data, causing stock to plummet.

flag Aldeyra Therapeutics’ stock dropped 68.6% after the FDA rejected its application for reproxalap, an eye drop for dry eye disease, marking the third consecutive Complete Response Letter since 2023. flag The agency cited insufficient evidence of efficacy due to inconsistent trial results, though no safety or manufacturing issues were found. flag The FDA did not require additional clinical trials but urged Aldeyra to investigate trial variability and identify potential patient subgroups. flag The company, which has $70 million in cash expected to last through 2028, plans to request a Type A meeting with the FDA but will not conduct further trials. flag The decision impacts AbbVie, which holds an exclusive option to co-commercialize the drug with potential milestone payments of up to $300 million.

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