Investors need to think a bit longer-term here and realize that even if the atopic dermatitis route turns out to be a dead end, the future of Nucryst is still looking bright.

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"The stock is oversold, and as the dust settles, the third-quarter earnings will be coming out with cash flow and revenues from Acticoat, and people will value the stock based on that, and probably on the assumption that atopic dermatitis is not going to come back, " says Wolff.

FORBES: Nucryst's Nano Silver Lining

Atopic dermatitis can also affect the skin around the eyes, including your eyelids.

CNN: Atopic dermatitis (eczema)

Even if NP 32101 is eventually dropped for atopic dermatitis, it is still possible that the drug will be useful in gastrointestinal disorders.

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"Nucryst is continuing to analyze data from this study so that we can evaluate options for our atopic dermatitis program with a complete understanding of the study results, " says President and CEO Scott H.

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Clinical studies do suggest the importance of bacterial flora in other conditions that include lactose intolerance, atopic dermatitis and some other immune-mediated, rheumatologic and allergic diseases.

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