Merck & Co. said Friday it would discontinue developing the osteoporosis drug odanacatib and not seek regulatory approval for the treatment because it carries a higher risk of stroke.

New Jersey-based Merck said it decided to stop development after an independent analysis confirmed an increased risk of stroke with use of the drug. The data from the analysis will be presented this month at the American Society for Bone Mineral Research.

"We are disappointed that the overall benefit-risk profile for odanacatib does not support filing or further development," said Dr. Roger Perlmutter, president of Merck Research Laboratories.

Merck, in its annual report in February, said it had planned to seek regulatory approval for the drug in the U.S. and Japan following the independent analysis.

Osteoporosis reduces bone density and strength, leading to an increased risk of bone fractures. Dr. Perlmutter said that while the treatment showed the ability to reduce the risk of osteoporotic fractures, the increased risk of stroke "does not support further development."

Merck's problems with odanacatib predates the hiring of Dr. Perlmutter. In February 2013, the drugmaker signaled delays in seeking approval for the drug. A month later, Merck hired Dr. Perlmutter, the former research chief at Amgen Inc., to lead and restructure its own research-and-development operation.

Merck shares, inactive premarket, have risen 19% so far this year.

Write to Anne Steele at Anne.Steele@wsj.com

(END) Dow Jones Newswires

September 02, 2016 08:25 ET (12:25 GMT)

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