Why ChemoCentryx Stock Crashed Today

Shares of ChemoCentryx (NASDAQ: CCXI) were crashing 46.5% lower as of 3:06 p.m. EDT on Tuesday. The huge decline came after the U.S. Food and Drug Administration (FDA) released briefing documents for an advisory committee scheduled to meet on Thursday to review the approval application for avacopan.

As you might have guessed from the collapse of the biotech stock today, the FDA's briefing documents didn't look very good for ChemoCentryx. Instead, the documents raised significant doubts about the prospects for avacopan to win approval in treating anti-neutrophilic cytoplasmic autoantibody (ANCA)-vasculitis, an autoimmune disease that causes small blood vessels to swell.

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Source Fool.com