Proteostasis Therapeutics Inc. shares tanked nearly 18% in extremely heavy Tuesday morning trade after Kerrisdale Capital put out a short report on the company. “Stock has run up on unimportant breakthrough-therapy designation, but the underlying clinical data is terrible. The drug is a dud,” Kerrisdale Capital said in a statement. Proteostasis shares surged last week on an orphan drug designation from the Food and Drug Administration for its cystic fibrosis drug and a smaller-than-expected fourth-quarter loss. Company shares have risen 7.9% over the last three months, compared with a 1.3% rise in the S&P 500 .
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