The stock was down 75.17% to $2.63 a share Thursday. It closed Wednesday at $10.57.
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. "However, we remain encouraged about the results of IMPALA, most notably the significant improvement in SGRQ, the consistency of trends and improvements seen across the endpoints and the favorable safety profile."
The company said that was meeting with the Food and Drug Administration and the European Medicines Agency to discuss the results of the study and to determine its next course of action.