Biotechnology company Mesoblast (NASDAQ: MESO) shares are plummeting premarket after the company said that its COVID-19 treatment was unlikely to meet its primary endpoint.
Mesoblast shares are down 31.83% on Friday at $9.25 following Thursday's close at $13.57. Its Australian-listed stock price fell 36.07% to A$2.41 after the news.
In a press release, the company said that the trial was aiming to achieve a primary endpoint of a 43% reduction in mortality at 30 days for treatment with remestemcel-L on top of maximal care in a trial of 300 patients with the mortality reduction target based on pilot data observed during the initial stages of the pandemic.
However, the Data Safety Monitoring Board (DSMB) reported that while there were no safety concerns, the trial is not likely to meet its primary endpoint.
The trial has not yet accrued data on the secondary endpoints, and the company will still carry out the study using the 223 patients that are already enrolled.