Why Is Orphazyme (ORPH) Stock Trading Lower On Monday?

Orphazyme A S ORPH saw its stock plunge on Monday after failing to meet primary and secondary endpoints in a Phase 2/3 trial.
The experimental drug, arimoclomol, was being tested in 150 inclusion body myositis patients against a placebo, a muscle-wasting disease.
The primary objective was to see how well the treatment could prevent disease progression measured by the inclusion body myositis functional rating scale.
No significant safety concerns were detected but gave no more data. Full findings from the study will be “shared in a future scientific forum,” the company added in a statement.
The drug is designed to boost the production of heat shock proteins, which can “rescue” defective misfolded proteins, clear protein aggregates, and improve lysosomes’ function.
This is certainly not the end of the road for arimoclomol. A Phase 3 data readout of the drug in amyotrophic lateral sclerosis, a neurodegenerative disease, is expected in the coming weeks.
Arimoclomol is also under a review at the FDA for Niemann-Pick disease type C, a rare disorder in which cholesterol builds up in patients’ cells and leads to neurological problems, with a decision expected by late June.
Price Action: ORPH shares are down 29.5% at $8.74 in market trading hours on the last check Monday.