Here's Why Biohaven Pharmaceutical Stock Fell as Much as 28.6% Today

Shares of pre-revenue biopharma Biohaven Pharmaceutical (NYSE: BHVN) dropped nearly 29% this morning after the company reported that one of its lead drug candidates failed to meet both its primary endpoint and key secondary outcome measure in a phase 2/3 trial. The drug candidate, trigriluzole, was the most advanced in the company's glutamate platform, which targets several rare diseases. The other drug platform is taking aim at more effective treatments for migraines.

Although the drug candidate was well-tolerated, it failed to beat placebo in a trial investigating the potential to treat spinocerebellar ataxia, a severe and often fatal genetic disease affecting motor function. There is no effective treatment nor cure for the hereditary disease.

Shares recovered quickly after a precipitous drop shortly after market open. As of 12:13 p.m. EDT, the stock had settled to a 12.9% loss.

Source: Fool.com