Acelyrin Inc (NASDAQ:SLRN) collapsed, down some 58% ahead of Tuesday’s open, after the company revealed the failure of its clinical trial which attempted to reduce symptoms of inflammatory skin disease.
The stock traded at its lowest point in its short history, following its May 2023 IPO which raised $540 million from investors who were effectively betting on the success of trials like this.
Acelyrin noted that it retains plenty of funds, with some $823 million at the end of June, and its attentions will turn to the next clinical work of a potential arthritis drug - due to start early next year.
“Although the overall study did not meet statistical significance, izokibep appears to be demonstrating consistent early and high orders of response for patients suffering from hidradenitis suppurativa without safety or tolerability limitation,” said Shao-Lee Lin chief executive.
In New York, Acelyrin shares gave up $16.36 or 58.65% changing hands at $11.54.