Ventyx Biosciences’ stock suffering record plunge after psoriasis treatment trial fails to meet internal efficacy target

Shares of Ventyx Biosciences Inc.
VTYX,
-80.62%
plunged 73.7% in premarket trading Tuesday, after the biopharmaceutical company said it has decided not to support further development of its plaque psoriasis and psoriatic arthritis treatments. The stock, which was the biggest decliner listed on major U.S. exchanges ahead of the open, was on track to suffer a record one-day selloff and open in record-low territory. “Although the trial achieved its primary endpoint, the magnitude of efficacy observed did not meet our internal target to support advancement of VTX958 in plaque psoriasis,” the company said in a statement. “Accordingly, we will terminate ongoing activities in the Phase 2 plaque psoriasis trial effective immediately.” Because of the results, the company decided to also terminate the Phase 2 trial of the psoriatic arthritis treatment. The stock has tumbled 57.3% over the past three months through Monday, while the iShares Biotechnology ETF has lost 5.6% and the S&P 500
SPX,
+0.28%
has slipped 3.4%.