Phase III clinical trials for Prolacria, the Inspire eye drop for the symptoms of dry eye, have resulted in it not meeting its key goals.
A six-week, randomised, placebo-controlled trial in 490 patients failed to cure the symptoms of dry eyes to an acceptable standard.
The biopharmaceutical company which focuses on researching, developing and commercialising prescription pharmaceutical products for ophthalmic and pulmonary diseases is reviewing the trial.
Christy L Shaffer, president and chief executive of Inspire, said: "We have provided the top-line results from this trial to our partner Allergan and we will be conducting a thorough review of the program before determining next steps, if any."
For many people, the symptoms of dry eyes are caused by wearing contact lenses, especially if they are worn for long periods.
Contact lenses can dehydrate as water evaporates from the front surface of the lens and in response the lens absorbs water from the eye's tear film.
This makes the eye less lubricated than it should be and can cause the symptoms of dry eye such as redness, itchiness and grittiness in the eye.
Over night contact lenses can reduce the symptoms of dry eyes as they are only worn for around six to eight hours at a time, compared to the 16 hours that conventional contact lenses are often worn for.
Ortho K contact lenses are worn at night and removed during the day with the result of natural vision without the need for contact lenses or glasses.
They are made from a very high oxygen permeable material made by Bausch and Lomb which lets six times more oxygen into the eye than normal disposable contact lenses.
Eye Health: Find out if i-GO over night contact lenses will suit you.
By Nick Howard