Why Connect Biopharma Stock Is Crashing Today

Shares of Connect Biopharma (NASDAQ: CNTB) were crashing 51.8% lower as of 11:31 a.m. ET on Friday. The big decline came after the company reported top-line results on Thursday from a phase 2 clinical study evaluating CBP-201 administered subcutaneously (an injection under the skin) to adults with moderate-to-severe atopic dermatitis.

Connect Biopharma said that the primary endpoint of the phase 2 study was met with all three arms of patients receiving CBP-201 "achieving significant improvements." So why did the biotech stock plunge?

Investors clearly weren't buying that the results were as positive as Connect Biopharma indicated. The company stated that the percentage reduction in the Eczema Area and Severity Index (EASI) score for patients receiving CBP-201 at week 16 was statistically significant compared to placebo. However, Connect didn't reveal what the specific improvements for each arm of the study were.

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Source Fool.com