Galmed Pharmaceuticals Ltd (NASDAQ: GLMD) is having an overwhelmingly rough day in the market today, and for good reason. The company announced data from a key clinical trial, missing the mark in a big way. As a result, fear struck and the stock started to take a dive. Today, we’ll talk about the data, what we’re seeing from the stock, and what we’ll be watching for ahead.
GLMD Falls Hard On Failed Clinical Trial
As mentioned above, Galmed is having an incredibly rough day in the market today after releasing clinical results. In a press release issued this morning, the company released clinical data from its ARRIVE trial. The trial was assessing the SCD1 modulator Aramchol, a once-daily, oral therapy for the treatment of nonalcoholic steatohepatitis, also known as NASH and other liver diseases. Unfortunately the trial did not meet its primary endpoint.
The clinical trial involved 50 patients with HIV-associated lipodystrophy and non-alcoholic fatty liver disease, or NAFLD. In the release, GLMD said that the trial showed no difference between HIV patients receiving Aramchol for 12 weeks when compared with HIV patients in the placebo arm. In a statement, Allen Baharaff, CEO at GLMD, had the following to offer:
Aramachol, with its unique mechanism of action, favorable safety and tolerability profile, is being evaluated in a variety of liver diseases. Treating fatty liver disease, in the presence of the lipodystrophy associated with HIV and/or HIV therapy, may be more complex than treating fatty liver disease (NASH) in the non-HIV infected population. Prof. Loomba is a pioneer in this research for a well-deserved patient population. It will be important for researchers and companies to evaluate other therapeutic agents, alone or in combination, in the spectrum of fatty liver disease and lipodystrophy in the HIV infected population.
What We’re Seeing From The Stock
As investors, one of the first lessons that we learn is that it’s important to keep a close eye on the news. In particular, news surrounding clinical trials in the biotechnology space tends to move the market in a big way. Unfortunately for Galmed Pharmaceuticals, the trial proved to be a failure, leading to a flurry of upset investors pulling out of the company and sending the stock falling dramatically. As is almost always the case, our partners at Trade Ideas were the first to alert us to the drop. Currently (10:41), GLMD is trading at $4.74 per share after a loss of $4.72 per share or 49.85% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on GLMD. In particular, we’re interested in following the story surrounding the company’s movements following this failure with regard to Aramchol. It looks like the company will be looking to start trials in the treatment of other liver ailments. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks.
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