Vital Therapies Inc (NASDAQ: VTL) is having an incredibly rough start to the trading session this morning, and for good reason. The company announced that a clinical trial has failed to meet its primary endpoint, leading to concerns among investors and sending the stock tumbling toward the bottom. Today, we’ll talk about:
- The failed clinical trial;
- what we’re seeing from VTL as a result; and
- what we’ll be watching for with regard to the stock ahead.
VTL Falls Hard On Failed Trial
As mentioned above, Vital Therapies is having an incredibly rough start to the trading session this morning in the pre-market hours after announcing the results of a failed clinical trial. In a press release issued early this morning, the company said that while ELAD® did lead to numerical improvement in survival between three months and one year among patients with acute forms of liver failure, the treatment failed to meet the primary endpoint of a significant improvement in overall survival of at least 91 days. VTL also said that the secondary endpoint of proportion of survivors at study day 91 also showed no statistically significant difference between groups.
As a result of these results, the company said that it does not believe the ELAD System can be approved int eh United States or the European Union at present without additional clincial trials that will require substantial capital and time to complete. As a result, the company has decided to scrap the asset and explore strategic options. In a statement, Russel J. Cox, CEO at VTL, had the following to offer:
Although we did not achieve the outcome we were hoping for, we would like to thank those who made this trial possible, including our investigators and their staffs, the patients who were enrolled and their families, and all Vital Therapies employees.
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 VTL, the news proved to be overwhelmingly negative. After all, the ELAD System took quite a bit of time and money to get to this point, only to be scrapped due to poor clinical data. So, it comes as no surprise that upset investors are sending the stock tumbling down. Of course, our partners at Trade Ideas were the first to alert us to the declines. At the moment (8:47), VTL is trading at $0.70 per share after a loss of $5.60 per share or 88.89% 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 VTL. In particular, we’re interested in following the company as it explores strategic options after trashing its core asset. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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