Forte Biosciences Just Plummeted 80%: Here's Why

A biopharmaceutical company focused on the development of dermatology treatments saw a sharp drop after hours Thursday.

What Happened: The clinical trial of Forte Biosciences FBRX lead drug FB-401 failed to meet a statistical significance, the company said.

Topline data from a Phase 2 trial for the treatment of atopic dermatitis did not reach its primary endpoint. The company said positive endpoints were observed in key secondary endpoints.

“The topline data is disappointing and we will continue to analyze the data, however, given the readout we will not continue to advance FB-401,” Forte CEO Paul Wagner said.

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The company had cash balances of $50.8 million as of June 30.

“We expect to provide investors with an update on the future plans of the company over the next several months," Wagner said.

The company said it will not host its previously scheduled conference call on Sept. 7.

FBRX Price Action: Forte Biosciences shares are down 82% to $5.16 at the time of publication in after-hours trading. Shares have traded between $23.61 and $53.99 over the last 52 weeks.