Solid Biosciences Inc (NASDAQ: SLDB) is having an overwhelmingly rough start to the trading session this morning. While the company reported its Q1 financials after the close yesterday, this has little to do with the declines.
Ultimately, the fall in value has to do with the fact that the company’s Phase 1/2 clinical trial has led to potential safety concerns. Today, we’ll talk about:
- The safety issue;
- what we’re seeing from SLDB stock as a result; and
- what we’ll be watching for ahead.
SLDB Falls Hard On Safety Signals
As mentioned above, Solid Biosciences is having a rough day in the market today after reporting its Q1 financial results. While financials were about what investors expected to see, an update offered up with the report led to some serious concerns.
At the moment, SLDB is working on a potential treatment for Duchenne muscular dystrophy (DMD). The treatment is known as SGT-001.
Currently, there is an ongoing Phase 1/2 clinical trial, evaluating the treatment that was named IGNITE DMD. Unfortunately, the trial led to some adverse events that are worrisome to say the least.
SLDB said that during the trial, one patient experienced a transient increase in billirbuin higher than 2x the upper limit of normal. Unfortunately, this is considered to be a treatment-related serious adverse event. While the condition was resolved with oral glucocorticoid therapy, serious adverse events are never good in clinical trials.
Moreover, another patient included in the trial experienced a transient decline in platelet count that was also considered to be related to SGT-001. Once again, this issue was resolved. However, this same patient ended up with a gastrointestinal infection, yet another serious adverse event. Yet, the gastrointestinal infection was deemd to be unrelated to treatment.
What We’re Seeing From The Stock
As investors, one of the first lessons that we learn when we start to dig into the market is that the news leads to moves. When it comes to Solid Biosciences, the news proved to be overwhelmingly negative.
After all, SGT-001 is the company’s lead clinical candidate. With this candidate showing clear signs to be concerned about, it only makes sense that investors are upset and sending the stock down as a result.
As is just about always the case, our partners at Trade Ideas were the first to alert us to the movement. At the moment (9:24), SLDB is trading at $5.50 per share after a loss of $3.35 per share or 37.85% 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 SLDB. In particular, we’re interested in following the story surrounding the company’s continued work to resolve the problems with SGT-001. Nonetheless, we’ll keep a close eye on the news and bring it to you as it breaks!
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