Shares of Ventyx Biosciences Inc. (VTYX, -9.56%) dramatically plummeted by 73.7% during premarket trading on Tuesday. This significant decline comes after the biopharmaceutical company announced that it will no longer support the further development of its plaque psoriasis and psoriatic arthritis treatments.
Disappointing Results Lead to Termination of Trials
The stock, which now holds the title of the largest decliner on major U.S. exchanges, is expected to experience a one-day selloff that sets it at a record-low level upon opening. Even though the trial did achieve its primary endpoint, Ventyx Biosciences expressed dissatisfaction with the efficacy observed in their plaque psoriasis treatment, codenamed VTX958.
According to a statement from the company, “the magnitude of efficacy observed did not meet our internal target to support advancement of VTX958 in plaque psoriasis.” As a result, they have immediately terminated all ongoing activities related to the Phase 2 plaque psoriasis trial.
Upon reviewing the discouraging results, Ventyx Biosciences also made the decision to halt the Phase 2 trial of their psoriatic arthritis treatment.
Negative Performance in the Market
The stock has experienced a significant decline of 57.3% over the past three months leading up to Monday. In comparison, the iShares Biotechnology ETF has only lost 5.6%, and the S&P 500 has slipped 3.4% (SPX, +0.18%).