The first question anyone might ask if a stock falls from more than $9 to less than $2.50 is whether it already imploded? Prana Biotechnology Ltd. (NASDAQ: PRAN) has done just that in the last two trading sessions. Now investors have to be asking whether that last $2.40 will turn into a total goose egg.

The long and short of the matter is that Prana was trading at $11.00 just last week. On Monday came news that Prana’s preliminary results of its Alzheimer’s Phase II IMAGINE study did not meet its primary endpoint of a statistically significant reduction in the levels of  plaque in the brain. Shares fell from a $9.86 close on Friday all the way down to $2.80 on Monday. And mid-afternoon trading on Tuesday has shares at $2.40 after another 14% drop.

Prana’s market cap is $99 million after the drop. The company, back on February 18, reported that it met its primary endpoint in Phase II REACH2HD studies for treating Huntington Disease.

The Australian company’s 2013 year-end in June showed $12.217 million in assets (June 30) with almost no debt. Unfortunately, almost all of its news is on updates.

Prana has already imploded on a technical definition by losing more than 75% of its value in a week or so. Sadly, it seems possible that the worst news coming is not over — and that is not just class action lawsuits.

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