Neurocrine Biosciences Shares Plunged: What You Need to Know
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What: Shares of Neurocrine Biosciences (NAS: NBIX) aren't feeling well today, down by as much as 13%, after the company reported the results from a phase 2 trial for one of its drugs, NBI-98854.
So what: The drug is for tardive dyskinesia, which is a neurological syndrome that can cause involuntary movements, and it did not meet the primary endpoint of the trial. The overall results showed a "non-significant reduction" in the syndrome compared to patients who were treated with a placebo.
Now what: The plot thickens, though, as the company said that one of the eight sites where the testing was performed did not administer the drug properly, and attributed the overall shortfall to this site. Neurocrine said that when excluding this one site, the results showed a "significant reduction" in symptoms at the end of the two weeks of testing. Going forward, the company is planning a 12-week phase 2b study in mid-2012 with top-line data expected by the end of the year.
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At the time this article was published Fool contributorEvan Niuholds no position in any company mentioned.Click hereto see his holdings and a short bio. The Motley Fool has adisclosure policy. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. Try any of our Foolish newsletter servicesfree for 30 days.