Time is cruel to Corbus Pharmaceuticals

Yesterday morning brought the failure of Corbus’ lead drug, called lenabasum, in a Phase 3 clinical trial involving patients with a chronic, connective tissue disease. The drug maker spent four years planning and conducting the study, so it’s inglorious end — no difference whatsoever between lenabasum and its matching placebo — wasn’t the post-Labor Day kickoff the company hoped for. 

Corbus’ stock price plunged 76%, erasing $600 million in market value. Investors are not only disappointed in the failure of this study, but they’re looking ahead to the readouts from two additional lenabasum Phase 3 studies and not feeling very confident.