Here's Why Tetralogic Pharmaceuticals Is Down 70%

Shares of Tetralogic Pharmaceuticals Corp TLOG, a clinical-stage biopharmaceutical company, plunged more than 75 percent after Wednesday's market close.

Tetralogic reported that a placebo controlled Phase 2 study of birinapant co-administered with azacitidine in first line higher risk patients suffering from myelodysplastic syndromes (MDS), birinapant did not demonstrate any clinical benefit over placebo on the primary endpoint of response rate after four months of therapy and met the bounds for futility.

Tetralogic also stated that it will terminate its clinical study and the company will explore strategic alternatives.

"Whilst the results of the birinapant study in MDS are disappointing, the results we achieved with SHAPE provide an interesting product profile with activity observed on both the CAILS and mSWAT endpoints and the potential to reduce pruritus, one of the more difficult symptoms to treat in CTCL," said J. Kevin Buchi, TetraLogic CEO.

The stock traded recently at $1.20, down 70 percent in Thursday's pre-market session.