Versartis Inc. (NASDAQ:$VSAR) shares plunged a whopping 82% late Thursday. Why? It all started after the California-based biopharmaceutical company announced that its drug Somavaratan failed to meet its endpoint in a phase 3 trial.

The drug, which is a form of human growth hormone that looks to treat growth-hormone deficiency, failed to show superiority to Genotropin, which is an offering from Pfizer, Inc. (NYSE:$PFE) in a study that focused on a pediatric growth-hormone deficiency.

“We are very surprised and disappointed to learn the outcome,” Jay Shepard, Chief Executive, said on Thursday. He added that Versartis plans to provide a corporate update later in 2017.

In the past three months, Versartis shares have gained 27%.

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Author Caroline Harris

About the author: Caroline Harris is a third-year student at Capilano University in North Vancouver, Canada. Having already completed an Associates Degree in Psychology, Caroline is now finishing her Bachelor's degree in Communications. In preparation for working in the advertisement sector, Caroline is writing financial content and analysis. On a daily basis, Caroline works on articles regarding the following topics: finance, cryptocurrency, technology, and politics.