Catabasis Pharmaceuticals (CATB) Stock Crashes on Failed Clinical Trial

Catabasis Pharmaceuticals CATB Stock News

Catabasis Pharmaceuticals Inc (NASDAQ: CATB) is taking a nose dive in the market this morning, and for good reason. The company announced top line results from a Phasse 3 clinical trial that failed to meet its primary endpoint. Here’s what’s going on:

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CATB Stock Crashes on Failed DMD Trial

As mentioned above, Catabasis Pharmaceuticals is crashing after announcing the failure of a Phase 3 clinical trial. The trial, known as Polaris DMD, assessed edasalonexent as a potential treatment option for patients with Duchenne muscular dystrophy, or DMD.

Unfortunately, CATB informed investors that the trial did not meet its primary endpoint. The endpoint was a change from baseline in the North Star Ambulatory Assessment over one year of edasalonexent when compared to placebo.

The company went on to explain that secondary endpoints failed to show statistically significant improvements. These secondary endpoints included time to stand, 10-meter walk/run and 4-stair climb.

CATB explained that the treatment was safe and well tolerated, but due to the efficacy results, it is stopping activities related to the development of the treatment. As a result, the company will work with external advisors to explore strategic alternatives.

In a statement, Jill C. Milne, Ph.D., CEO at CATB, had the following to offer:

We are deeply saddened and disappointed by the results of our Phase 3 PolarisDMD trial. I want to sincerely thank all of the boys, their families and caregivers, investigators and the trial sites that participated in and enabled this program. The entire Catabasis team has worked tirelessly to find a treatment for this progressive disease. We hope that our data and work to date can be used to benefit ongoing and future research in DMD.

What’s Next

Moving forward, Catabasis Pharmaceuticals has a tough road to hike. Unfortunately, the company has invested years and millions of dollars into the development of edasalonexent. With the failure of the clinical trial and the stopping of all development activities surrounding the asset in mind, this time and money has been wasted.

Now, the company will have to move forward with assets it has on hand, and do so quickly, or consider selling itself to the highest bidder. The latter seems to be the direction it’s heading. All in all, there are more questions than answers surrounding CATB stock at the moment. So, tread lightly if you’re thinking about jumping in on the declines.

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