Dermira’s shares plunge following results from new anti-acne therapy

Shares of California-based Dermira yesterday plunged by 64% (Nasdaq) after results from the Phase III Clareos-1 and Clareos-2 clinical trials were announced. The trials have been conducted on patients with acne vulgaris, treated with the investigational olumacostat glasaretil, which however has failed to reach the previously set endpoints. The business of acne products is rapidly growing and reached $3.3bn pa last year. Oddly enough, however, very few treatments are available, with products developed decades ago. Olumacostat glasaretil was meant to introduce a new approach to treat acne: reducing  the oily skin effect. The treatment initially attracted investors, and Dermira’s capitalization has risen to $360m.  The business of new acne therapies includes many companies, among which Allergan, Novan, Melinta and Valeant.

(Source: Marketwatch)