Denali Therapeutics Inc ( DNLI ) shares are moving lower in Thursday’s after-hours session after the company announced that its Phase 2 study of oditrasertib was discontinued.

What Happened: After the market close on Thursday, Denali said strategic partner Sanofi SA ( SNY ) informed the company that its K2 Phase 2 study evaluating oditrasertib on serum neurofilament light chain levels in participants with multiple sclerosis was discontinued because it failed to meet the primary and key secondary endpoints.

In the company’s earnings release from August, Denali noted that its Phase 2 study evaluating oditrasertib was fully enrolled. The company did not provide any further updates on the program at the time.

Denali is due to report quarterly results again in early November. Analysts expect the company to report a loss of 61 cents per share and revenue of $9.45 million, according to estimates from Benzinga Pro. It’s likely that management will provide more details on the Phase 2 study discontinuation leading up to earnings or in the earnings release.

Raymond James analyst Danielle Brill reinstated Denali Therapeutics ( DNLI ) with a Market Perform rating on Thursday morning.

Last month, Cantor Fitzgerald reiterated Overweight with a price target of $35, HC Wainwright & Co reiterated Buy with a price target of $90 and BofA Securities maintained a Buy rating and lifted its price target from $25 to $29.

DNLI Price Action: Denali Therapeutics ( DNLI ) shares were down 2.29% in after-hours, trading at $25.15 at the time of publication Thursday, according to Benzinga Pro.

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