CervoMed said on Tuesday its experimental drug for a common degenerative brain disease did not meet the main or secondary goals in a mid-stage clinical trial, sending the U.S. drug developer shares down 77% in early trading.

CervoMed Inc. (NASDAQ:CRVO) stock is trading lower after the company revealed topline data from the RewinD-LB Phase 2b clinical trial evaluating neflamapimod for dementia with Lewy bodies (DLB). The trial did not meet statistical significance thresholds for its primary endpoint of change in the Clinical Dementia Rating Sum of Boxes (a measure of dementia severity) or any of its key secondary endpoints – change from baseline in Timed Up and Go (measures a person’s mobility,

CervoMed’s ex-Vertex drug has failed to reduce the severity of patients’ dementia in a phase 2 trial, halting plans for a late-stage study.

The US company CervoMed announced yesterday that the FDA has granted Orphan Drug Designation to its oral investigational small molecule drug, Neflamapimod, for the treatment of frontotemporal dementia. The FDA’s decision is on based promising results from the company’s Phase 1 and 2 studies.