Ventyx Biosciences scrapped a psoriasis drug that didn't pass muster in Phase 2 testing on Tuesday, sending VTYX stock crashing more than 80%.
The company tested four doses of its drug, dubbed VTX958, in patients with moderate to severe plaque psoriasis. But only two of those regimens led to statistically significant improvements in symptoms. Ventyx says the results weren't strong enough to enter the "highly competitive" psoriasis market.
"While the Phase 2 (study) of VTX958 in plaque psoriasis met the primary and key secondary (goals), we are disappointed by the magnitude of efficacy observed, despite having achieved target levels of drug exposure in the (study)," Chief Executive Raju Mohan said in a written statement.
On the stock market today, VTYX stock plummeted 80.6% to close at 2.73.
VTYX Stock: Scrapping Psoriasis, Arthritis Studies
Ventyx studied the impact of its drug over 16 weeks. Patients on the high-dose regimens showed at least a 75% improvement in skin lesions associated with plaque psoriasis.
Based on the results, Ventyx says it's terminating the psoriasis study and an ongoing test in psoriatic arthritis. Ventyx is still studying VTX958 in patients with Crohn's disease and expects to have interim results in the first quarter.
VTYX stock, which started trading in December 2021, plunged to its lowest point in massive volume, according to MarketSmith.com.
Shares are poorly rated with an IBD Digital Relative Strength Rating of 5. The RS Rating is a 1-99 score of a stock's 12-month performance. Ventyx shares rank in the bottom 5% of all stocks.
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