Shares of Conatus Pharmaceuticals plummet over 50% after Phase 2 trial fails to meet primary endpoint

Shares of Conatus Pharmaceuticals Inc. CNAT, -56.67% plummeted 53% Thursday after the company announced its Phase 2 clinical trial of emricasan did not meet its primary endpoint. Patients with liver damage from nonalcoholic fatty liver disease did not show sufficient patient improvement on the drug compared to a placebo. Stifel analysts downgraded the company to hold from buy and lowered their price target to $4 from $10, while analysts at SunTrust Robinson Humphrey lowered their price target to $12 from $20. Friday’s selloff puts the biotech’s stock on track to suffer its biggest one-day percentage decline since the company went public in July 2013. Shares of Conatus have fallen 53% in the year to date, and the S&P 500 SPX, -1.84% has fallen 0.1%.

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