Acelyrin, a Los Angeles-based pharmaceutical company, experienced a significant drop in its stock value after announcing that its skin drug candidate did not meet statistical significance for its primary endpoint. The company’s stock fell by 62% to $10.70 in after-hours trading on Monday, following a modest 2.4% increase at the market close. Despite this setback, Acelyrin’s shares have seen a cumulative rise of nearly 20% since its initial public offering in May.
The Phase 2b/3 trial of Acelyrin’s drug, izokibep, aimed to evaluate its effectiveness in treating moderate-to-severe Hidradenitis Suppurativa (HS), an inflammatory skin condition. Unfortunately, part B of the trial did not achieve statistical significance for its primary endpoint by week 16. However, Acelyrin remains optimistic as izokibep still exhibited promising benefits for HS patients.
Despite the setback, Acelyrin assures investors of its strong financial position and the availability of sufficient funds to support ongoing operations during crucial milestones within its portfolio. The company anticipates the release of data from two other trials by the end of the first quarter of 2024.