UPDATE 1-Eiger to discontinue hepatitis drug study over safety concerns

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Sept 12 (Reuters) - Eiger BioPharmaceuticals Inc said on Tuesday it would discontinue a late-stage study testing its experimental drug to treat the most severe form of viral hepatitis, due to safety concerns. The decision follows the recommendation of an independent data and safety monitoring board after it observed deterioration in liver function in four patients during a quarterly safety review.

The drug candidate, peginterferon lambda, was being tested in patients with chronic hepatitis delta (CHD).

"The study discontinuation is disappointing, especially for patients with chronic hepatitis delta who have limited treatment options," said Eiger CEO David Apelian.

The company said it will work closely with the U.S. Food and Drug Administration and trial investigators to conduct an orderly termination of the study.

(Reporting by Mariam Sunny in Bengaluru; Editing by Devika Syamnath)

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