Arsanis Inc (NASDAQ: ASNS) is having an overwhelmingly rough start to the trading session this morning, giving away all but the kitchen sink. Ultimately, the declines have to do with a failed clinical trial that the company announced would be discontinued. Of course, the news upset investors who are sending the stock tumbling down. Today, we’ll talk about:
- The discontinued trial;
- what we’re seeing from the stock as a result; and
- what we’ll be watching for with regard to ASNS ahead.
ASNS Announces Trial Discontinuation
As mentioned above, Arsanis is having an incredibly rough start to the trading session this morning after announcing the discontinuation of a clinical trial. In a press release issued early this morning, the company announced that it has decided to discontinue its Phase 2 clinical trial of ASN100. ASN100 was being assessed as a preventative measure with regard to S. aureus pneumonia in high-risk, mechanically ventilated patients.
In the release, ASNS said that the discontinuation of the clinical trial came following the completion of a planned interim analysis of unblinded databy an independent data review committee. Unforutnately, based on the results of the analysis, the trial proved to be futile and would not likely meet its primary endpoint. As a result, the DRC recommended that both enrollment and the trial itself be discontinued. Moving forward, the company does intend on conducting follow-up visits on all patients dosed with ASN100 per the study protocol. In a statement, René Russo, president and CEO at ASNS, had the following to offer:
We are disappointed that this clinical study was futile despite the survival benefit of ASN100 as compared to placebo observed in preclinical models of pneumonia, however Arsanis remains confident in the potential of monoclonal antibodies to prevent and treat serious infections, while also reducing the threat of antibiotic resistance… We intend to evaluate the complete dataset from the patients that were enrolled in the ASN100 study to better understand the basis for this result and expect to provide an update on the program following this review. We thank the patients and their caregivers who participated in the ASN100 Phase 2 study.
We will continue to focus our efforts and resources on our other programs, including the development of ASN500 for the prevention of respiratory syncytial virus (RSV) infection, which contributes to 240,000 hospitalizations per year in the U.S. Pre-clinical data for ASN500 has demonstrated high potency with potential to offer benefits over existing preventive therapies in terms of dosing strategy, manufacturing and route of administration, to better serve both new and existing target patient populations. We expect to advance ASN500 into Phase 1 clinical trials in 2019.
What We’re Seeing From The Stock
One of the first lessons that we learn as investors is that the news moves the market. In the case of Arsanis, the news proved to be overwhelmingly negative. After all, a scrapped clinical trial equates to a scrapped asset, and that’s never good news. So, it’s no surprise to see that investors are reacgting in an overwhelmingly negative way. Of course, our partners at Trade Ideas were the first to alert us to the declines. At the moment (8:50), ASNS is trading at $4.50 per share after a loss of $13.69 per share or 75.26% thus far today.
Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on ASNS. In particular, we’re interested in following the story surrounding the company’s plans following the announcement of the trial discontinuation. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breask!
Never Miss The News Again
Do you want real-time, actionable news delivered to your inbox? Join the CNA Finance mailing list below!