* Says AS1413 failed to meet primary endpoint in trial
* Also ending development of AS1411
* Company to become smaller, maximise other programmes
* Shares down 64 percent
(Adds analyst reaction, shares)
By Paul Sandle
LONDON, Jan 31 (Reuters) - Antisoma said on Monday its acute leukaemia drug AS1413 had failed in a final stage trial and it was ending development of another cancer medicine, dealing a body blow to the British biotech group's prospects.
Chief Executive Glyn Edwards said the collapse of the company's sole remaining final-stage drug was "hugely disappointing for patients, investigators, investors and employees".
Antisoma had hoped AS1413 would be effective in treating patients that had a high level of resistance to other drugs.
Shares in the group fell as much as 66 percent to an all-time low of 2.1 pence as Peel Hunt analyst Paul Cuddon said the setback could sound the death-knell for the company.
"Other than 3.5 pence of cash, which we anticipate will fall to 2 pence, little value remains in Antisoma, and sadly we fail to see an ongoing future," he said.
The disappointment is the latest in a string of failures for drug companies in late-stage clinical trials.
French drugmaker Sanofi-Aventis reported a setback for iniparib, its advanced breast cancer drug, on Friday, while AstraZeneca said in September that its prostate cancer pill zibotentan failed to improve survival.
Antisoma's key lung-cancer drug failed in March, causing a 75 percent fall in its shares from which it has never recovered.
The company said on Monday it was also dropping earlier stage II trials for another leukaemia drug, AS1411, after early data shows a lack of therapeutic benefit.
"We will now become smaller and focus on maximising the value of our other programmes," Edwards said.
Antisoma said it would immediately cut spending to preserve its cash, which stood at about 23.4 million pounds ($37.2 million) at the end of 2010. ($1=.6297 Pound) (Editing by Jon Loades-Carter)