Ionis Pharmaceuticals (IONS) canceled a Huntington treatment on Monday night after an independent committee questioned whether the drug’s benefits outweigh its risks. In response, the stock of IONS plummeted.
X
The drug was being developed in partnership with Roche (RHHBY). Although there were no new safety issues, the committee made the decision based on the benefit / risk profile of the drug in the Phase 3 test, Ionis said in a press release. Researchers will continue to monitor participants for safety and clinical outcomes.
In late stock on the stock market today, IONS shares plunged 19.8% close to 44.70. The shares ended the regular session with an increase of 2.6%, to 55.64. Roche’s shares remained unchanged in the late action. The shares ended the regular session with an increase of 3.2%, to 42.50.
“We are very disappointed by this news,” Ionis Chief Executive Brett Monia said in a written statement. “It is clear that this is not the result we have worked for or hoped for, as we have come very close to the patient community (Huntington’s disease) over the years.”
Ionis said he would also pause patient dosing in the open study while analyzing the results of the Phase 3 test. The news comes as a blow to IONS ‘actions, as the drug, known as tominersen, is one of the active stages advanced by Ionis.
Roche said it will share future plans for tominersen after the full results are available.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
YOU MIGHT LIKE:
AstraZeneca Pops: Will another Covid vaccine receive FDA authorization soon?
Can Sarepta’s ‘remarkable’ gene therapy take stock out of garbage dumps?
IBD Digital: Unlock IBD’s premium stock lists, tools and analytics today
Actions to buy and observe: main IPOs, large and small caps, growth stocks
Looking for the next Apple or Amazon? Get started with these S&P 500-Beating lists