Neo­thet­ics pon­ders the fu­ture af­ter sole ther­a­py proves an ug­ly flop in PhII, evis­cer­at­ing shares

Back in 2014, San Diego-based Neo­thet­ics raised $65 mil­lion by sell­ing shares at $14 a pop af­ter win­ning over a group of in­vestors to back its plans to de­vel­op an aes­thet­ic fat-buster. This morn­ing, the much shrunk­en shares were evis­cer­at­ed, drop­ping deep in­to pen­ny stock ter­ri­to­ry as the com­pa­ny read last rites over a Phase II proof-of-con­cept study.

Com­pa­ny ex­ecs said that the drug failed to dis­tin­guish it­self in any way from a place­bo and they were crys­tal clear in their as­sess­ment of its po­ten­tial, say­ing the da­ta were “un­am­bigu­ous.” The stock $NEOT quick­ly cratered, nose div­ing more than 70% Mon­day morn­ing.

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