Zynerba, a small biotechnology company, plummeted 51% on Tuesday after its CBD gel failed a pivotal trial for a rare disorder called Fragile X syndrome.
The company said its experimental cannabis-based gel, called Zygel, did not meet its primary endpoint in improving aberrant behavior when compared to a placebo.
Additionally, Zygel failed to meet any of its three secondary endpoints.
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Zynerba plummeted as much as 51% on Tuesday after the company said its experimental cannabis-based gel failed to meet its primary endpoint in a pivotal trial for a rare disorder called Fragile X syndrome.
Fragile X syndrome is a rare genetic disorder that is characterized by mild to moderate intellectual disability.
Zynerba had developed a CBD gel, called Zygel, to test its ability to treat patients of Fragile X syndrome.
In addition to failing to meet its primary endpoint in improving aberrant behavior when compared to a placebo, it also failed to meet its three secondary endpoints.
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Zynerba said it would meet with the FDA to discuss the trial results as soon as possible, as well as continue to run ad hoc analysis on the trial data. The company also delayed top-line Phase 2 data from its INSPIRE trial to the end of 2020 due to COVID-19 travel restrictions.
Shares of Zynerba fell from a close of $6.54 on Monday to a low of $3.20 on Tuesday, representing a decline of 51%. The company’s cash per share is $2.43, according to data from Yahoo Finance.
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Source:: Business Insider