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Faron failure highlights risks of biotech investing

Faron failure highlights risks of biotech investing

Positive early-stage trial results, hitherto enthusiastic regulators and the promise of commercial partnerships mean nothing to a biotech company if its lead drug fails its final phase trial. Faron Pharmaceuticals (FARN) learnt this the hard way. The failure of its Acute Respiratory Distress Syndrome (ARDS) treatment, Traumakine, in a pivotal trial knocked 85 per cent off the share price in just one day.

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