Shares of Forte Biosciences Inc. (NAS:FBRX) plummeted 81.2% on heavy volume toward a record low in premarket trading Friday, after the biopharmaceutical company said it will no longer advance its lead product candidate FB-401, a treatment for atopic dermatitis. Trading volume spiked to 2.8 million shares ahead of the open, compared with the full-day average of about 754,000 shares. The company said late Thursday that a Phase 2 trial of FB-401 failed to meet statistical significance for the primary endpoint of the proportion of patients with at least 50% improvement in atopic dermatitis disease severity. The company said the primary endpoint was achieved by 58% of subjects on FB-401, compared with 60% of subjects on placebo. "The topline data is disappointing and we will continue to analyze the data; however, given this readout we will not continue to advance FB-401," said Chief Executive Paul Wagner. "We expect to provide investors with an update on the future plans for the company over the next several months." The stock, on track to open below the Dec. 19, 2019 record low close of $6.65, has dropped 25.0% over the past three months through Thursday, while the iShares Biotechnology ETF (NAS:IBB) has climbed 16.7% and the S&P 500 (S&P:SPX) has gained 8.2%.
Sept. 3, 2021, 7:21 a.m. EDT