Here's Why NephroGenex Plunged 40% On Wednesday

Shares of NephroGenex Inc NRX, a nano-cap pharmaceutical company that focuses on treatment for kidney diseases, plunged more than 40 percent on Wednesday after the company announced a business update.

NephroGenex said it will pause a clinical program of its product candidate oral Pyridorin due to the remaining trial costs, the company's cash balance and the condition of the capital markets.

As of February 23, the company held approximately $11.5 million in cash and equivalents after paying off a $6.3 million term loan.

NephroGenex will now explore strategic alternatives, including a potential reverse merger transaction. The company added it has already hired bankers to assist in its options.