ORPH Stock Price Falls Over 40%: Why It Happened

Orphazyme A S ADR ORPH shares are trading lower by 42% at $8.41 Friday morning after the company announced it received a Complete Response Letter from the FDA for its treatment for Niemann-Pick Disease Type C and also cut its FY2021 outlook.

See Also: Orphazyme Wild Party At Risk As FDA Rejects Its Rare Neurodegenerative Disease Drug

Orphazyme is a late-stage biopharmaceutical company harnessing the amplification of Heat Shock Proteins. It is engaged in the development and commercialization of novel therapeutics for the treatment of neurodegenerative rare diseases.

The company's lead candidate, Arimoclomol, is in development for four severe orphan diseases: Niemann-Pick disease Type C (NPC), Gaucher disease, Amyotrophic Lateral Sclerosis (ALS) and Inclusion Body Myositis (IBM).