Merck KGaA Plunges as Multiple Sclerosis Drug Fails in Trial

  • Results create challenges for German company’s pharma division
  • Analyst had seen $2.7 billion in potential sales from drug
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Merck KGaA plunged after an experimental multiple-sclerosis drug failed in late-stage trials, a blow to the German company’s plans to drive growth with another blockbuster medicine.

Evobrutinib didn’t show strong enough efficacy in two final-stage studies of people with relapsing multiple sclerosis, Merck saidBloomberg Terminal late Tuesday. On Wednesday morning its shares dropped as much as 14% in Frankfurt trading, the most since 2009, erasing more than €5 billion in market value.