The stock price of Cytokinetics, Inc. (NASDAQ:CYTK) tumbled more than 61% after the company revealed that its experimental treatment for patients suffering from Amyotrophic Lateral Sclerosis (ALS) (commonly called Lou Gehrig’s disease), a progressive neurodegenerative disorder, failed to meet its goals in a phase 11b clinical trial.

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The shares of the biopharmaceutical company were trading at $5.00 per share at the time of this writing around 1:07 P.M. today. Cytokinetics, Inc. (NASDAQ:CYTK) closed at $12.99 per share yesterday. The trading of the stock was halted before the bell on Friday.

Initial data from Cytokinetics’ clinical trial

Based on the summary of the initial data from the clinical trial, the new compound called Tirasemtiv did not help patients inflicted with Lou Gehrigs disease.

Cytokinetics, Inc. (NASDAQ:CYTK) said the topline results of the BENEFIT ALS (Blinded Evaluations of Neuromuscular Effects and Functional Improvements with Tirasemtiv in ALS) failed to achieve its primary efficacy endpoint.

The biopharmaceutical company said the secondary efficacy analysis of the effect of Tirasemtiv on respiratory function and other measures of skeletal muscle function provided mixed results.

Tirasemtiv is a novel muscle activator and it is the lead drug candidate from the skeletal muscle contractility program of Cytokinetics, Inc. (NASDAQ:CYTK).

“Fair amount of value left”

Commenting on the results of the mid-stage clinical trial of the treat, Chad Messer, an analyst at Needham & Co Inc. told Bloomberg, “It’s pretty negative news. People are going to sell and run away. They’re going to consider it dead money for a while. I think there’s a fair amount of value left in the company.

Messer added that he believes Cytokinetics, Inc. (NASDAQ:CYTK) heart disease drug will show more positive trial results by the end of the year.

New therapeutics alternatives desperately needed

In a statement, Robert I. Blum, president and CEO of Cytokinetics Inc. (NASDAQ:CYTK) said, “Patients with ALS desperately need new therapeutic alternatives to slow the course of their disease and loss of function. We stand with the ALS community in our disappointment that BENEFIT-ALS did not achieve its primary efficacy endpoint.”

According to him, the company will share the full details of the results of the clinical trial with the broader scientific and medical community focused on ALS research over the next few days.

“Understanding these results will require significant further review. Once we have fully evaluated the data from BENEFIT-ALS, we expect to determine whether there is a potential development path forward for Tirasemtiv for the potential treatment of ALS and what may be the appropriate next steps,” said Blum.