Here's Why Zogenix Took a Tumble Today

Shares of Zogenix (NASDAQ: ZGNX) fell more than 32% today after the company reported positive top-line results from an important phase 3 study evaluating Fintepla as a treatment for a rare childhood form of epilepsy called Lennox-Gastaut syndrome (LGS). While the drug candidate achieved a statistically significant reduction in the rate of seizures compared to the placebo -- which was the primary endpoint of the study -- investors weren't impressed by the magnitude of the difference.

In the LGS study, the highest dose of Fintepla reduced the number of monthly seizures by 26.5% compared to baseline, while individuals taking the placebo achieved a reduction of only 7.8%. The difference of 18.7% was statistically significant. However, as highlighted by Endpoints News, the difference in reductions of monthly seizures between the highest dose of Fintepla and the placebo in an earlier study of Dravet syndrome was 70%. Dravet syndrome is another form of epilepsy.

As of 10:52 a.m. EST, the pharma stock had settled to a 31.3% loss.

Source Fool.com