Shares of Synthetic Biologics (SYN) fell by 14% yesterday after the company reported on update on the phase 2 clinical trial for its Trimesta drug, used to treat patients with Relapsing-Remitting Multiple Sclerosis -- RRMS. In RRMS, patients suffer from devastating attacks on the myelin sheath - the membrane that surrounds nerve cells. These patients relapse in that their disease is not constant, instead it is followed by on/off periods that occur randomly. 

Back in November of 2015, the company announced that it wanted to include independent third-party evaluations to determine if the Trimesta program should be continued into further clinical testing. Both the clinical and magnetic resonance imaging -- MRI -- results did not demonstrate statistical significance in these patients with RRMS. The trimesta drug along with Copaxone was not proven to be superior to Copaxone plus a placebo at either 12 months or 24 months. 

With these clinical findings the company has chosen to abandon the Trimesta program and focus clinical resources on two gut microbiome programs. Both of which have already demonstrated positive top-line results in phase 2 trials. In addition Synthetic Biologics has terminated its license and clinical trial agreement with the University of California for Trimesta. 

In the short term Synthetic Biologics will remain weak because of this trial failure, and depressed market conditions. The good news is that those who are patient might benefit from the two phase 2 programs that did receive positive clinical findings to date. Long-term investing is the key for those looking for a little risk.