Dermira Inc.'s skin treatment olumacostat glasaretil failed to meet its primary endpoint in two late-stage trials known as Clareos-1 and Clareos-2.
The Menlo Park, Calif.-based company was studying the medicine to treat moderate-to-severe acne vulgaris in patients aged nine years and older. Based on the results from both phase 3 trials, the medicine was not significantly better than placebo in treating the condition.
"We are surprised and extremely disappointed by the results of the phase 3 program," Dermira Chairman and CEO Thomas Wiggans said in a statement.
Dermira's chief development officer, Luis Peña, said the company is likely to discontinue development of the medicine, formerly known as DRM01, given the information to date.
The company's stock was down 62.68% following the news to $9.36 per share as of 10:26 a.m. ET on March 5.
