An experimental acne drug just failed two key clinical trials -- and the stock's getting obliterated

  • Dermatology biotech Dermira said on Monday that its experimental drug to treat acne failed two key clinical trials.
  • Dermira was studying the drug in kids over 9 years old to see if it could reduce the number of inflammatory and non-inflammatory lesions on that person’s skin compared to a control arm.
  • Dermira, which had a market cap of about $US1 billion when markets closed on Friday was down as much as 64% on Monday in pre-market trading.
  • “We are surprised and extremely disappointed by the results of the Phase 3 program,” Dermira CEO Tom Wiggans said in a news release.
  • The company is also developing treatments for hyperhidrosis, otherwise known as excessive sweating, and atopic dermatitis.

Screen Shot 2018 03 05 at 8.42.21 AMMarkets Insider

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.