This Trial Failure Dropped Versartis Inc 86.6% and Lifted Ascendis Pharma 51.4%

Shares of biopharma Versartis (NASDAQ: VSAR) crashed nearly 87% Friday after somavaratan, the company's lead drug candidate, did not meet its primary endpoint in the phase 3 Velocity trial. The drug is a recombinant human growth hormone that was being evaluated as a treatment for growth hormone deficiency in children. It failed to spur height growth as well as Genotropin from Pfizer, the current standard treatment.

One biopharma's loss is another biopharma's gain. Shares of Ascendis Pharma (NASDAQ: ASND) soared as much as 51.4% Friday. The company is also developing drugs for pediatric and adult growth hormone deficiency, so Versartis' failure opens the door for Ascendis Pharma to take market share away from Pfizer pending the results of its recently initiated phase 3 trial.

As of 1:28 p.m. EDT, Versartis stock had settled to a 86.5% loss, while Ascendis Pharma stock had settled to a 27.4% gain.

Source: Fool.com