CBAY stock is under severe selling pressure after CymaBay Therapeutics Inc (NASDAQ:CBAY) reported interim data from an ongoing Phase 2b clinical trial for seladelpar.
Setback for CymaBay
California-based CymaBay Therapeutics has had a setback in the Phase 2 trial with its product that was supposed to treat nonalcoholic steatohepatitis (NASH). Once the bad news spread, CBAY soon plummeted. It has emerged that the company’s product did not help in reducing liver fat significantly and a CBAY stock selloff soon got underway on Tuesday. The drug in question is seladelpar, and it has been revealed that it fared no better than the placebo.
The Chief Medical Officer of CymaBay, Pol Boudes, said, “While the reductions in liver fat were minimal, we remain encouraged by the significant improvements in biochemical markers of liver injury that we observed at week 12.” He went on to add that the company would have a better understanding of the effectiveness of the product once it gets access to 52-week data. CymaBay had performed the tests on 181 patients over a period of 12 weeks, and now the company will have to go back to the drawing board in order to improve its product.
CBAY stock tumbled 47% to $5.91 on massive volume. Moreover, the stock made a multi-year low of $4.82 earlier in the session.
It is important to add, though, that a lot of products are being developed by a range of companies in order to treat NASH, and thus far, none of the companies have found a lot of success in this particular segment.
CymaBay rivals like Gilead Sciences, Inc. (NASDAQ:GILD) and Intercept Pharmaceuticals Inc (NASDAQ:ICPT) have also revealed data from the trials of their respective products, but the data has not been impressive. According to an analyst at Jeffries, the companies trying to get a breakthrough in this niche have not able to impress investors with the data so far.
CBAY stock has tumbled about 60% from its 52-week high of $15.
What do you think of CBAY stock after today’s news?
Featured image: DepositPhotos © realinemedia