On Monday, Myriad Genetics decided to discontinue the development of the drug, Flurizan, after it suffered a significant failure in a late-stage clinical trial. The drug was intended to treat Alzheimer?s disease but disheartened hopefuls when it fell short of improving patients? functioning and thinking ability. Myriad?s stock dropped more than 6 percent to $45 in early afternoon trading also on Monday.

Myriad has spent a total of $60 million on Flurizan studies. Such a...