Tuesday turned out to be a nightmare for shareholders of Proteon Therapeutics Inc (NASDAQ:PRTO), after the company released data for its failed chronic kidney disease (CKD) drug. The company disclosed that its first Phase 3 clinical trial with investigational vonapanitase, PATENCY-1, did not meet its primary endpoint of improved primary unassisted patency compared to placebo (p=0.254).

Proteon Therapeutics shares reacted to the news, crashing over 70% as of this writing.

“We are disappointed that the study missed the primary endpoint. However, it appears that vonapanitase had a drug effect and we are encouraged by the secondary patency and fistula use for hemodialysis findings in this trial, both of which we believe are clinically important,” said Steven Burke, M.D., Senior Vice President and Chief Medical Officer of Proteon Therapeutics. “We plan to review the full data set from PATENCY-1 and further investigate these findings in our ongoing Phase 3 clinical trial, PATENCY-2.”

“We want to thank the clinical investigators and the patients and their families who volunteered to participate in PATENCY-1.  We have always recognized that this is an important and complex area of clinical development and Proteon remains committed to the dialysis patient community,” stated Timothy Noyes, President and Chief Executive Officer of Proteon Therapeutics. “Because of the clinical importance of fistula abandonment and fistula use for hemodialysis to both patients and physicians, we plan to increase the planned enrollment of PATENCY-2 and look for other ways to use these results to guide our development efforts.”

On the ratings front, Proteon has been the subject of a number of recent research reports. In a report issued on December 1, Oppenheimer analyst Jay Olson reiterated a Buy rating on PRTO, with a price target of $21, which implies an upside of 112% from current levels. Separately, on November 30, Cowen’s Boris Peaker reiterated a Buy rating on the stock.

According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Jay Olson and Boris Peaker have a yearly average return of 5.8% and 8.4% respectively. Olson has a success rate of 35% and is ranked #1554 out of 4269 analysts, while Peaker has a success rate of 40% and is ranked #476.

Overall, 5 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $19.00 which is 91.9% above where the stock closed yesterday.

Proteon Therapeutics, Inc. is a biopharmaceutical company, which focuses on development of pharmaceuticals to address the needs of patients with kidney and vascular disease. It offers PRT-201, a recombinant human elastase that fragments elastin fibers in blood vessel walls.