Celladon Corp (NASDAQ:CLDN) shares were down following news of a failed clinical trial.

Celladon’s clinical trial was testing using gene therapy for treating heart failure. It was the company’s lead trial, but it missed its first and secondary goals, which caused it to fail the trial. The company had high hopes for the treatment and it was given the “breakthrough” and “fast-track” statuses by the U.S. Food and Drug Administration, reports Reuters.

Following news of the failed clinical trial and falling stock prices, Celladon is expected to announce measures to cut cost. This will likely include layoffs that could be announced in the next few months, Reuters notes.

Following the drop in stock price for Celladon, both Wedbush and Roth Capital downgraded it to a “Neutral” rating. Wedbush lowered its price target for CLDN stock from $29 to $3, reports 24/7 Wall St.‎

CLDN shares were down 80% as of Monday afternoon.

More From InvestorPlace