What happened

Shares of development-stage pharma Ampio Pharmaceuticals (NYSEMKT:AMPE) fell nearly 19% today without any news. However, considering the stock rose over 20% earlier in the week -- once again, without any news -- today's move is likely just a simple correction. Even with the precipitous drop factored in, the stock is up 210% in the last year, although the company's market cap is just $190 million.

As of 2:55 p.m. EST, the stock had settled to a 17.9% loss.

So what

Investors have been cheering on Ampio Pharmaceuticals for seemingly rosy data on its lead drug candidate Ampion, which is a potential treatment for severe osteoporosis of the knee. The company released and explained phase 3 results for the drug candidate at the end of 2017. But marketing approval may not be coming.

A finger pointing at a candle chart showing losses.

Image source: Getty Images.

Why not? As explained by prominent biopharma analyst Adam Feuerstein over at STAT, the phase 3 trial wasn't accompanied by the most robust design. Turns out, Ampion has performed no better than saline solution for treating osteoporosis.

Now what

Ampio Pharmaceuticals doesn't have a great reputation, has never generated revenue, and has worked hard to spin mediocre trial data as something more positive. I think the market had the company more fairly valued in the second half of 2017 when it was a penny stock with little going for it. In other words, today's big drop probably won't be the last.