Why Corbus Pharmaceuticals Is Getting Slammed Today

Shares of the clinical-stage biotech Corbus Pharmaceuticals Holdings (NASDAQ: CRBP) fell by as much as 77% in pre-market trading Tuesday morning. The drugmaker's shares are tanking this morning in response to a negative late-stage readout for lenabasum in patients with a rare autoimmune disorder known as diffuse cutaneous systemic sclerosis (SSc).

Lenabasum, an oral synthetic endocannabinoid-mimetic that selectively binds to the cannabinoid receptor type 2, reportedly failed to outperform placebo on the trial's primary and secondary endpoints. The drug's other ongoing trials for dermatomyositis, systemic lupus erythematosus, and cystic fibrosis are unaffected by this late-stage miss, according to the company's press release.

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Source Fool.com