Here's Why Shares of DURECT Plummeted Today

Shares of DURECT (NASDAQ: DRRX) are down 33% at 11:57 a.m. EST following the failure of the company's phase 2a clinical trial of DUR-928 in patients with plaque psoriasis. Based on the results of the midstage trial, the company doesn't plan on continuing development of DUR-928 in psoriasis.

DURECT didn't release any results beyond the top-line failure: "DUR-928 did not demonstrate a benefit over vehicle (placebo) based on Investigator's Global Assessment" -- a measurement of how skin lesions are healing. The biotech noted that DUR-928 didn't meet any of the clinical trial's secondary endpoints, either.

The failure is disappointing given the large number of people with plaque psoriasis. As a topical application, the drug would likely have been used ahead of popular drugs that have to be injected or infused.

Source Fool.com