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Why Forte Biosciences Stock Is Imploding Today

By Keith Speights – Sep 3, 2021 at 11:21AM

Key Points

  • Forte reported that FB-401 failed to meet the primary endpoint in a phase 2 study targeting atopic dermatitis.
  • The company is throwing in the towel on the program -- its only pipeline candidate.

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The company announced dismal results from a phase 2 study of its only pipeline candidate.

What happened

Shares of Forte Biosciences (FBRX -0.97%) are imploding on Friday, plunging 81.4% lower as of 11:12 a.m. This huge decline came after the company announced on Thursday evening that top-line data from its phase 2 study evaluating FB-401 in treating atopic dermatitis hadn't met the primary endpoint of the study.

So what

Forte stated that 58% of patients in the phase 2 study who received FB-401 achieved the primary endpoint of EASI-50 (the proportion of patients with 50% or greater improvement on the Eczema Area and Severity Index measurement). However, that was lower than the 60% of patients on placebo who achieved the threshold.

Scientists with unhappy expressions on their faces.

Image source: Getty Images.

The company noted that FB-401 did perform better on some secondary endpoints of the study. However, those results weren't statistically significant.

FB-401 is the only candidate in Forte's pipeline. The dismal results from the phase 2 study, therefore, were a crushing blow to the biotech stock

Now what

Forte plans to continue analyzing the data from the phase 2 study of FB-401. However, the company doesn't intend to advance the program. CEO Paul Wagner said, "We expect to provide investors with an update on the future plans for the company over the next several months."

Keith Speights has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Stocks Mentioned

Forte Biosciences, Inc. Stock Quote
Forte Biosciences, Inc.
FBRX
$0.99 (-0.97%) $0.01

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