InflaRx NV lost about 90% of its market value after it reported that patients receiving its medicine IFX-1 failed to show a statistically significant dose response for their skin disease in a mid-stage study when compared to placebo.
The Germany-based biopharmaceutical company's stock was down by 90.24% to $3.64 on Nasdaq as of 9:53 a.m. ET.
InflaRx evaluated four doses of IFX-1 against placebo in a phase 2b trial dubbed Shine which enrolled 179 patients with moderate to severe hidradenitis suppurativa — a painful, long-term skin condition that causes pus and scarring on the skin.
The company said that after 16 weeks of treatment, IFX-1 showed a response rate of 51.5% while placebo demonstrated a response rate of 47.1%.
InflaRx Chief Medical Officer Othmar Zenker said: "We are disappointed that we were not able to demonstrate a significant signal on dose-response for the treatment with IFX-1. While we are still analyzing additional data, we note that the trial demonstrated an unusually high placebo [Hidradenitis Suppurativa Clinical Response] HiSCR rate at week 16."
Patients receiving the drug also saw a reduction in the quality of life, as experienced by the patients themselves, compared to those on placebo.
The company added that overall, 72% of patients on placebo experienced a treatment-related adverse event compared to 66% of the combined IFX-1 treated patient groups.
InflaRx said the most common treatment-emergent adverse events were worsening of the disease and the common cold.
The company noted that IFX-1 was well-tolerated.
In addition, InflaRx said it will carry out a detailed analysis of additional data from the ongoing 28-week extension part of the Shine study when it becomes available.