Neothetics Stock Plummets 66% On News Of Negative Results For Fat-reduction Drug

Neothetics Inc. shares dropped 66% in premarket trade Monday on news of negative results for its fat-reduction drug. The drug, LIPO-202-CL-31, is intended to reduce fat beneath the chin that is due to belly fat. But in a phase 2 proof-of-concept trial, the drug "did not demonstrate improvement on any efficacy measurements or separation from placebo," the company said, calling the results "unambiguous." Neothetics is considering "the path forward for the company," and will share next steps "shortly," said Kim Kamdar, a member of Neothetics' operating committee and board of directors. Neothetics shares have surged 65.7% to $2.32 over the last three months, compared with a 4% rise in the S&P 500 .