Swiss company Roche has suffered a major setback as a drug, which is meant for treating diabetes, has been showing side effects. This is the reason that they are going to stop the development of the drug.

The drug known as aleglitazar has shown side effects in the late stage trial of the drug. It has been found that patients who took the drug in the trial suffered problems in their organs.

Company's spokesperson was of the view that they have taken the decision for the benefit of patients. Moreover, they have not carried out any assessment of the financial loss that they have suffered.

Roche's rival companies have also discarded the plans of coming up with similar drugs. It has been found that AstraZeneca was also developing the similar drug. But the drug's development was scrapped. Not only, AstraZeneca, as it has been found that Myers Squibb has also suffered similar setback.

"In hindsight it seemed odd how Roche put so many resources into a compound whose mechanism - given experience with at least 3 other drugs in the class - was best questionable", said Analysts from Kepler Chevreux.

After the news was publicized, it was found that Roche's shares witnessed a loss of 0.3%.