Zura scraps hidradenitis suppurativa drug program after clinical trial failure

Zura Bio reported that its drug tibulizumab failed in a phase 2 trial involving 247 patients with hidradenitis suppurativa (HS), a chronic inflammatory skin condition. The study compared two doses of the drug against a placebo, but the trial missed its primary endpoint because patients taking the placebo showed similar improvement rates in reducing abscesses and nodules compared to those taking the medication. Although the drug's actual response rates were comparable to another approved treatment on the market, the unusually high effectiveness in the placebo arm doomed the trial.

In response to the clinical setback, investors sent Zura's stock down 72% to $1.12 when markets opened. Despite dropping the HS indication, Zura CEO Sandeep Kulkarni noted that the company will continue testing the asset in other conditions like systemic sclerosis and polymyalgia rheumatica, which have completely different disease mechanisms. Furthermore, Zura reported that the drug was generally well-tolerated with manageable safety results, and the company ended September with $187.7 million in cash, providing a financial runway through at least the end of 2028.