Menlo Therapeutics Inc (NASDAQ: MNLO) is having an overwhelmingly rough start to the trading session this morning, and for good reason. The company announced top-line results from a Phase 2 clinical trial, missing the mark. Of course, the news upset investors who are sending the stock tumbling down. Today, we’ll talk about:
- The data;
- what we’re seeing from MNLO as a result; and
- what we’ll be watching for ahead.
MNLO Tumbles On Data
As mentioned above, Menlo Therapeutics is having an incredibly rough start to the trading session this morning after the company announced negative clinical data. In a press release issued early in the pre-market, the company provided top-line results from its MTI-110 Phase 2 clinical trial of serlopitant for the treatment of refractory chronic cough.
In the release, MNLO said that the 185 patient study failed to demonstrate benefit versus placebo on the primary and key secondary endpoints. Unfortunately, as a result of the negative outcome of the clinical trial, the company will be scrapping the asset and moving on to other areas of its shrinkning pipeline.
In a statement, Steve Basta, CEO at MNLO, had the following to offer:
Based upon the results of this trial, we do not anticipate further development of serlopitant for the treatment of refractory chronic cough. We sincerely thank the patients and investigators who participated in this trial… We are continuing the clinical development of serlopitant for pruritus associated with various conditions given the two successful Phase 2 clinical trials in which serlopitant demonstrated a reduction in chronic pruritus and pruritus associated with prurigo nodularis.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that the news leads to moves. In the case of Menlo Therapeutics, the news proved to be overwhelmingly negative. After all, it’s never good to see an asset scrapped due to a failed clinical trial. So, it comes as no surprise to see that upset investors are sending the stock tumbling in the market this morning. As is normally the case, our partners at Trade Ideas were the first to alert us to the movement. At the moment (9:25), MNLO is trading at $7.79 per share after a loss of $2.37 per share or 23.33% 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 MNLO. In particular, we’re interested in following the company to see where its focus goes as its pipeline continues to shrink due to clinical failures. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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