Although study results show RedHill Biopharma's irritable bowel syndrome with diarrhea drug Bekinda, improves stool consistency compared to a placebo, investors sent the drugmaker's stock tumbling because of poor secondary endpoint results, Reuters reports.
Here's what you should know:
1. Although Bekinda did meet its primary endpoint of improved stool consistency, it did not meet its secondary endpoints of improved abdominal pain or improved overall response in patients.
2. Shares of RedHill closed at $10.81 Oct. 2. They fell to $9.03 Oct. 3, before closing at $9.39 later in the day.
3. RedHill's Chief Executive Dror Ben-Asher told Reuters, the study wasn't designed to show significance in the secondary endpoints. He said, "The results are actually good according to the small sample size."
4. RedHill anticipates beginning a late-stage trial on Bekinda by late 2018.