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Updated with recent stock price.
CHARLOTTE, N.C. (
) -- When the closing bell rang at 4 p.m.on Thursday and the selloff came to a merciful end,
saw two-thirds of its market cap disappear.
Failing late-stage, trial results for a drugmeant to treat a neurological low-blood-pressure disorder evisceratedall of the gains made in the company's share price since May. At thefinish on Thursday, Chelsea Therapeutics plunged $4.29, or 61%, toclose at $2.73 on whopping volumes that topped some 56.9 millionshares.
But the roller coaster ride continued on Friday morning, as shares were clawing back 27 cents, or 10%, at $3.00.
The biopharm concern said in a press release that preliminaryresults for the first of two phase III trials of the drug Droxidopa,which is intended to treat symptoms for neurogenic orthostatichypotension, showed that "it did not demonstrate a statisticallysignificant improvement relative to placebo."
NOH is a disorder where a person's blood pressure plummets afterstanding up. The drug failed to discernibly help symptoms ofdizziness or lightheadedness, which was the primary focus of thedouble-blind trial.
However, Chelsea Therapeutics did note that the drug was welltolerated with no significant adverse effects, while CEO Dr. SimonPedder cited "encouraging" secondary measures in the statement.
-- Written by Sung Moss in New York
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