By Colin Kellaher

Marinus Pharmaceuticals shares plunged nearly 80% to a new all-time low on Thursday after the pharmaceutical company said it is cutting jobs and exploring strategic options following the failure of its Ztalmy seizure drug in a late-stage study in a rare genetic disorder.

Shares of Marinus were recently changing hands at 34 cents, their lowest level since the Radnor, Pa., company went public in July 2014.

Marinus said it is ending further clinical development of Ztalmy after a Phase 3 study in patients with tuberous sclerosis complex missed its primary endpoint of change in 28-day associated seizure frequency.

The company said it will continue to support and invest in the commercial growth of Ztalmy in the FDA-approved treatment of seizures associated with CDKL5 deficiency disorder, adding that more than 200 patients are currently receiving treatment.

In the meantime, Marinus said it is taking steps to reduce costs, including a reduction in its workforce, and that it has hired Barclays to assist with a review of strategic alternatives aimed at maximizing value for its investors.

In a research note, EF Hutton analyst Jason Kolbert said the move by Marinus shows the company recognizes it likely makes more sense for an established global pharma company to take over Ztalmy and integrate the drug into an existing franchise.

With the removal of tuberous sclerosis complex from its model, EF Hutton's price target for Marinus falls to $3 from $23.

Kolbert said he estimates a Marinus take-out valuation of between $250 million and $500 million, which is well above the company's current market capitalization of roughly $19 million after Thursday's selloff, prompting the analyst to keep his buy rating on the stock.

Write to Colin Kellaher at colin.kellaher@wsj.com

(END) Dow Jones Newswires

October 24, 2024 10:35 ET (14:35 GMT)

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