Aclaris Therapeutics shares plunged more than 24% Wednesday after the company’s mild to severe atopic dermatitis (AD) treatment received disappointing topline results.
The results from the 4-week Phase 2b trial of its ATI-1777 treatment were not statistically superior to the Phase 2a trial, according to chairman Neal Walker.
Following the results, analysts at Jefferies downgraded the company to Hold and issued a price target of $1. Aclaris shares traded at $0.97 early Wednesday afternoon.
Notably, the trial saw a greater-than-expected placebo effect, the analysts wrote.
“ATI-1777 Ph2b showed satisfying absolute efficacy in mild to severe AD, though pbo effects were quite high,” the analysts wrote.
“ATI-1777 was well tolerated with no meaningful safety signals,” they added. “No [adverse effects] commonly associated with [Janus kinase inhibitors] (eg serious infections, malignancies, MACE and thromboses) were reported.’