Shares of Savara Inc.  (SVRA) crumpled in after-hours trading Wednesday after the company said a phase 3 trial of its Molgradex drug treatment for a rare lung disease had failed to meet its test goals.

The stock fell $7.81, or 74%, to $2.76 in after-hours action.

Molgradex is under development for the treatment of autoimmune alveolar pulmonary proteinosis (aPAP).

"Disappointingly, with the placebo effect stronger than anticipated, the study did not meet its primary endpoint," said Rob Neville, Savara's chief executive officer.