Biogen tumbled 12 percent in Tuesday trading after the biotechnology company said that a multiple sclerosis treatment with the potential to be a blockbuster drug failed to meet key goals in a midstage study.
In testing, opicinumab failed to improve overall physical or cognitive function, which involved 418 participants with relapsing forms of multiple sclerosis.
Biogen did say that there was evidence of a clinical effect in patients and that it plans to analyze the data when considering the design for its next study.
Biogen’s key revenue driver is Tecfidera, used treat relapsing forms of multiple sclerosis. Sales of the drug rose 15 percent to $946 million during the first quarter. But, sales were down 5 percent when compared with the fourth quarter.
The disappointing study results come just a month after the company announced the spinoff of its hemophilia business as it continues to restructure and focus on other areas, including multiple sclerosis and Alzheimer’s.
Shares fell $33.48 to $256.36.