CYTK: Cytokinetics Stock in Ugly Free Fall on ALS Drug Fail

The company will review the results to determine its next move

By Christopher Freeburn, InvestorPlace Writer

Shares of Cytokinetics (CYTK) plunged more than 60% in Friday morning trading after the company said its drug had not met the primary goal of a clinical trial.

NYSE traders on trading floor
Source: Flickr

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CYTK shares dropped on news that the company’s amyotrophic lateral sclerosis (ALS) drug, tirasemtiv, did not achieve its primary objective in a mid-stage clinical trial. Tirasemtiv only showed mixed success in a secondary efficacy analysis. The U.S. Food and Drug Administration had given the CYTK drug orphan drug and fast-track status. Full results of the trial will be revealed next week, the Wall Street Journal notes.

Cytokinetics CEO indicated that CYTK would subject tirasemtiv “significant” examination to “determine whether there is a potential development path forward for tirasemtiv for the potential treatment of ALS and what may be the appropriate next steps.”

ALS, commonly known as “Lou Gehrig’s disease,” is neurodegenerative disease that causes rapidly progressing muscle atrophy and spasms. People suffering from the disease eventually lose voluntary muscle control. Roughly 25,000 Americans have ALS.

CYTK stock closed at $12.99 per share on Thursday.

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