Why Biohaven Pharmaceutical Stock Is Tanking Today

The drugmaker's shares are sinking following the release of disappointing phase 2/3 clinical trial results for its experimental Alzheimer's disease drug known as troriluzole. Specifically, the company announced yesterday that troriluzole failed to beat out placebo at the 48-week mark in patients with mild to moderate Alzheimer's disease on two measures of cognitive decline: the Alzheimer's Disease Assessment Scale-Cognitive Subscale 11 and the Clinical Dementia Rating Scale Sum of Boxes. As U.S. stock markets were closed Monday for Martin Luther King Jr. Day, Biohaven's shares are reacting to this news today.