As it should. That’s the risk they take. Either you have a well designed trial that shows your drug is effective or you don’t.

What you don’t do is make lofty promises to vulnerable patients.

Amylyx Stock Wipes Out Nearly All Of Its Value, Crashing 82%, After Pivotal ALS Drug Failure[0]

[0]: https://finance.yahoo.com/m/b15fb91a-1e90-3259-844e-cfdb2563...

Probably someone made money off it as according to the article this was the clear outcome.