Shares of Axovant are plummeting after the company had failed a key late-stage trial for its Alzheimer's drug.
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Shares are down 75.59% in early trading on Tuesday at $5.92 a piece. Axovant closed Monday's trading session at $24.25.
The pharmaceutical company, founded by 32-year-old Vivek Ramaswamy, was trading for just a tenth of its previous day's value at one point Tuesday morning.
Axovant is the latest company to fail a notoriously hard Alzheimer's drug trial. Drugs hoping to treat the disease or its symptoms have failed to pass clinical trials 99% of the time.
Axovant's drug, intepirdine, hoped to stop the decline of cognitive function and ability to perform daily tasks in those with Alzheimer's. The company combined intepirdine with donepezil, an existing Alzheimer's drug, hoping to improve the effectiveness of donepezil.
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The company will continue to look for other uses of its intepirdine drug.
Shares were up 113% this year before the failed drug trial. Axovant is now down 52.18% in 2017.
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