Why Reata Pharmaceuticals Stock Got Absolutely Crushed on Thursday

Shares of Reata Pharmaceuticals (NASDAQ: RETA) got hammered in early trading Thursday, plunging as much as 43%. As of 11:18 a.m. ET, the stock was still down 42.7%.

The catalyst that sent the clinical-stage biopharmaceutical company reeling was an adverse opinion by a Food and Drug Administration (FDA) advisory panel.

Trading in Reata stock was halted on Wednesday as the FDA's Cardiovascular and Renal Drugs Advisory Committee met to discuss the fate of bardoxolone methyl, the company's drug candidate designed to treat chronic kidney disease. After reviewing the submission, the committee decided in a 13-0 vote that bardoxolone simply wasn't effective.

Source Fool.com