Menlo tanks after serlopitant's Phase II miss

Menlo Therapeutics Inc. (NASDAQ:MNLO) plummeted $27.05 (77%) to $8.17 on Monday after it said serlopitant (VPD-737) missed the primary and key secondary endpoints in the U.S. Phase II ATOMIK (MTI-103) trial to treat pruritus associated with atopic dermatitis.

Menlo, which went public in January, is now trading well below its $17 IPO price; its shares were worth more than twice that amount at Friday's close. Monday's move shaved about $620 million from the company's market cap...