Solana Beach’s Evoke Pharma Inc. (Nasdaq: EVOK) was the fifth-biggest loser on the Nasdaq board on Monday, as its stock price dipped 5.4 percent to $6.52 per share.
The decline was a reversal of a three-day rally, following the release of the company’s second quarter earnings report last week. Despite Monday’s sharp drop, the stock is still valued higher than it was when the rally began.
Although the company -- still in its startup phase -- lost $3.5 million during the quarter, $2.9 million came from research and development costs in its quest to treat a gastrointestinal disease related to diabetes. The company announced last week that it has launched electrocardiogram testing on healthy volunteers using its proposed treatment, which is currently in Phase 3 testing. The electrocardiogram testing is designed to comply with the Food and Drug Administration’s requirements for new drug applications.