Neothetics Inc (NASDAQ: NEOT) is off to an incredibly rough day in the market today, and for good reason. The company issued a press release this morning, announcing that a key clinical trial has failed. Of course, this led to fear among investors, who quickly sent the stock tumbling, prompting our partners at Trade Ideas to alert us to the movement. At the moment (9:00), NEOT is trading at $0.66 per share after a loss of $1.67 per share or 71.67% thus far today.
NEOT Falls Hard On Clinical Blues
As mentioned above, Neothetics is having an incredibly rough time in the market today after announcing that a key clinical trial has ended in failure. The company announced safety and efficacy results from its Phase 2 proof-of-concept study surrounding LIPO-202-CL-31. The treatment was designed for the reduction of submental subcutaneous fat. Unfortunately however, the treatment failed to demonstrate improvement on any efficacy measurements or any form of separation from the placebo. In a statement, Dr. Kim Kamdar, a member of the NEOT Operating Committee and Board of Directors, had the following to offer…
“We are determining the path forward for the company… Our primary objective is to maximize value for our shareholders, and we will be expeditious and diligent in deciding next steps. We will share our future plans shortly.”
The above statement was followed up by Dr. Dan Placquadio, head of the Development Committee at NEOT. Here’s what he had to say…
“We are disappointed in these results, which are unambiguous… We want to thank our investigators and their patients who participated in this study.”
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on NEOT. In particular, we’re interested in learning more about the company’s plans moving forward. Nonetheless, we’ll be following the story closely and bringing you the news as it breaks!
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