Shares in Savara Inc. , which is seeking to address rare lung diseases, dropped 75% in after-hours trading Wednesday, when the drug company announced that a study failed to hit its target. Savara said a phase 3 study of core pipeline drug Molgradex, which seeks to treat Autoimmune Alveolar Pulmonary Proteinosis, did not meet its primary endpoint. Secondary endpoints were met, and the company said it is figuring out next steps. “We are preparing to meet with the FDA and EMA to discuss the results from this study and to determine our options to seek approval based on the current data, and potentially conduct an additional study incorporating the learnings,” Chief Executive Rob Neville said in a statement. Shares were halted ahead of the announcement, after closing at $10.57, which gave the company a market cap of nearly $380 million. When shares were reopened for late trading, the price immediately fell to less than $2.40. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
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