A major drugmaker saw $27 billion wiped from its market value following a failed clinical trial.
Two companies announced Thursday that their jointly developed heart disease drug did not meet its goals in a Phase III trial.
The experimental treatment failed to demonstrate a statistically significant benefit for patients in the late-stage study.
Investors reacted swiftly, sending the drugmaker’s stock price down sharply and erasing billions in market capitalization.
Phase III trials are the final testing stage before a company can seek regulatory approval for a new drug.
A failure at this stage often means years of research and investment yield no marketable product.
The companies have not yet disclosed detailed trial data or indicated whether they will pursue further development.
Analysts are now reassessing the drugmaker’s pipeline, which previously included the heart disease treatment as a key growth driver.
