Protagonist Therapeutics Inc (NASDAQ: PTGX) is having an overwhelmingly rough start to the trading session this morning after announcing the discontinuation of a Phase 2b clinical trial. Of course, this led to fear among investors, sending the stock tumbling. Today, we’ll talk about the discontinuation of the Phase 2b clinical trial, what we’re seeing from the stock as a result of the news, and what we’ll be watching for ahead.
PTGX Announces Trial Discontinuation
As mentioned above, Protagonist Therapeutics is having an overwhelmingly 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 is discontinuing the Phase 2b PROPEL study of PTG-100. The treatment was designed for patients with moderate to severe ulcerative colitis, also known as UC.
In the release, PTGX said that the decision was the result of a planned interim analysis completed by an independent Data Monitoring Committee. The analysis focused on unblinded efficacy and safety data from the first 65 patients from the ongoing 240 patient trial who. Ultimately, the DMC decided that the trial was futile based on the analysis of the primary endpoint of clinical remission.
In a statement, Dinesh V. Patel, Ph.D., President and CEO at PTGX, had the following to offer:
We are very disappointed with this futility-based outcome which was also accompanied by an unexpectedly high placebo rate. We will conduct an extensive review of the complete dataset on the totality of patients enrolled in the trial before making any further decisions about the future development of PTG-100… We are very grateful to the patients and investigators who participated in the PROPEL trial. Protagonist remains committed to progressing its other peptide-based assets currently in clinical development, PTG-200 and PTG-300, and to discovering new peptide-based therapeutic entities to address significant unmet medical needs.
What We’re Seeing From The Stock
As investors, one of the first lessons that we learn is that the news causes moves in the market. In this particular case, the news released by Protagonist Therapeutics proved to be overwhelmingly negative. Unfortunately, this news generally leads to a negative reaction in the market, and this story is no different. The stock is tanking. Of course, our partners at Trade Ideas were the first to alert us to the declines. At the moment (11:20), PTGX is trading at $8.85 per share after a loss of $11.58 per share or 56.68% 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 PTGX. In particular, we’re interested in following the story surrounding the company’s decision with regard to what to do with PTG-100 moving forward. We’ll also continue to follow the development of PTG-200 and PTG-300. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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