Menlo Therapeutics Inc. MNLO announced disappointing top-line data from a mid-stage study evaluating its sole pipeline candidate, serlopitant. The phase II study — MTI-110 (TUSSIX) — was evaluating the candidate for the treatment of refractory chronic cough.The phase II study was evaluating the NK1 receptor antagonist, serlopitant, for change in 24-hour cough frequency from baseline after 12 weeks of treatment versus placebo. Data showed that patients treated with serlopitant had 31% less reduction in 24-hour cough frequency compared to placebo. Moreover, 44% of the patients treated with the candidate achieved a 30% or greater reduction in 24-hour cough frequency versus 51% for placebo.The company has decided to terminate the study following its failure to meet the primary endpoint and key secondary endpoints.Menlo’s shares plunged almost 40% on Oct 8, following the news. Shares of the company have declined 78.8% so far this year compared with the industry’s decline of 10.2%. Although Menlo has decided to stop development of serlopitant in refractory chronic cough, the key development program of the candidate for treating pruritus - skin itching, associated with various conditions - will continue. Serlopitant has successfully completed two phase II studies, which evaluated it in patients with chronic pruritus and pruritus associated with prurigo nodularis.A phase II study is currently evaluating the candidate for treating pruritus associated with psoriasis with data expected in December 2018. The company has plans to initiate a mid-stage study to evaluate serlopitant as a treatment for chronic pruritus of unknown origin in 2018.Menlo is also enrolling patients in two phase III studies, which will evaluate the candidate in patients with pruritus associated with prurigo nodularis in the United States and Europe. Data from the study is anticipated in the first half of 2020.Successful development of serlopitant in these ongoing studies is critical for Menlo’s growth prospect. The company had in-licensed serlopitant from Merck MRK in 2012.There are several pharma companies developing treatment for pruritus. Among these companies Vanda Pharmaceuticals Inc. VNDA, OPKO Health, Inc. OPK and privately-held Nerre Therapeutics are developing NK1 receptor antagonists, which may directly compete with serlopitant.Menlo Therapeutics Inc. Price Menlo Therapeutics Inc. Price | Menlo Therapeutics Inc. QuoteZacks RankMenlo currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Today's Stocks from Zacks' Hottest StrategiesIt's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.See Them Free>>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Merck & Co., Inc. (MRK): Free Stock Analysis Report Opko Health, Inc. (OPK): Free Stock Analysis Report Vanda Pharmaceuticals Inc. (VNDA): Free Stock Analysis Report Menlo Therapeutics Inc. (MNLO): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research