Edge Therapeutics’s stock plummets on heavy volume after late-stage drug trial discontinued

Shares of Edge Therapeutics Inc. plummeted 87% in active premarket trade toward a record low Wednesday, after an independent data monitoring committee recommended a phase 3 study of its treatment in adults with aneurysmal subarachnoid hemorrhage be stopped because data showing the trial had a “low probability” of meeting its primary endpoint. The stock was the most active ahead of the open with 2.1 million shares traded. Based on the committee’s recommendation, Edge said it has decided to discontinue the NEWTON 2 study. The company will analyst the data from the study to better understand the outcome. “We are very disappointed that the NEWTON 2 study did not demonstrate evidence of improved outcomes with EG-1962, given the positive findings demonstrated on this measure in our randomized, open-label Phase 1/2 NEWTON study of EG-1962 in a similar patient population,” said Chief Executive Brian Leuthner. The stock, which went public Oct. 1, 2015 at an initial public offering price of $11, had soared 94% over the past 12 months through Tuesday, while the iShares Nasdaq Biotechnology ETF had climbed 8.0% and the S&P 500 had gained 11%.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

…read more

From:: Stock Market News

Leave a Reply