Horizon Pharma Shares Tank 20% After Late-stage Trial Fails To Meet Goals

Horizon Pharma plc shares tumbled 22% in premarket trade Thursday, after the company said it is discontinuing a late-stage trial of a treatment for Friedreich's ataxia after it failed to meet its goals. The company said the Phase 3 trial of Actimmune as a treatment for the debilitating, degenerative neuro-muscular disorder failed to meet its primary and secondary endpoints. The results "were not what we hoped for," Horizon Chief Executive Timothy Walbert said in a statement. The company is not expecting the results to impact its full-year sales or adjusted EBITDA guidance, he said. The company will continue to work with the Friedreich's Ataxia Research Alliance and the regulator to analyze the data to help shape future research. Friedreich's ataxia affects about 4,000 to 6,000 people in the U.S. with symptoms that can start at age five and include progressive loss of strength that can lead to wheelchair use, poor vision, hearing and speech, among others. Horizon shares are down 11.5% in the year so far, while the S&P 500 has gained 9.7%.