Shares of Akero Therapeutics (NASDAQ: AKRO) were crashing 66.5% lower as of 11:09 a.m. ET on Tuesday. The steep decline came after the company announced interim results from a phase 2b clinical study evaluating efruxifermin (EFX) in treating patients with compensated cirrhosis due to nonalcoholic steatohepatitis (NASH).

Akero reported that 22% of patients receiving a lower dose of EFX and 24% of patients receiving a higher dose experienced an improvement of at least one stage in liver fibrosis with no worsening of NASH by week 36. However, this improvement wasn't statistically significant compared to the results for placebo. This failure caused investors to bail on the biotech stock.

In its press release announcing the data, Akero referred to the 36-week analysis as "encouraging." Why? There actually was some good news mixed with the bad news.

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Source Fool.com