Shares of Relmada Therapeutics Inc. tumbled about 40% in premarket trading on Thursday, the day after the company said its experimental depression drug did not meet the primary endpoint in a Phase 3 clinical trial. The stock closed Wednesday at $4.16, a three-year low. The study was evaluating REL-1017 as an adjunctive treatment for major depressive disorder. The same drug previously failed as a monotherapy for the same condition. Relmada said it is continuing to study the investigational therapy, specifically with an aim to improve the design of the clinical trials. “We understand investors’ frustration as the poor clinical conduct has jeopardized the interpretation of the Phase 3 results,” SVB Securities Marc Goodman told investors. “With two failed pivotal studies, it would be easy to say that this drug doesn’t work; however, failed studies are very normal with MDD trials, and we still believe this drug has activity.” Relmada’s stock has tumbled 81.5% this year, while the S&P 500 has declined 17.4%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.