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An experimental acne just failed two key clinical trials - and the stock's getting obliterated

Lydia Ramsey   

An experimental acne just failed two key clinical trials - and the stock's getting obliterated
Stock Market1 min read

  • Dermatology biotech Dermira said on Monday that its experimental drug to treat acne failed two key clinical trials.
  • Dermira was studying the drug in kids over 9 years old to see if it could reduce the number of inflammatory and non-inflammatory lesions on that person's skin compared to a control arm.
  • Dermira, which had a market cap of about $1 billion when markets closed on Friday was down as much as 64% on Monday in pre-market trading.
  • "We are surprised and extremely disappointed by the results of the Phase 3 program," Dermira CEO Tom Wiggans said in a news release.
  • The company is also developing treatments for hyperhidrosis, otherwise known as excessive sweating, and atopic dermatitis.

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