The Synairgen plc (LON: SNG) share price plunged 34.5% after the US National Institute of Allergy, and Infectious Diseases (NIAID) halted the recruitment of patients for the Phase 2/3 COVID-19 trial under the ACTIV-2 program.
The move came following a significant change in the nature of the COVID-19 pandemic that would require a substantial change in the study design that was focused on non-hospitalised adults with mild to moderate COVID-19 symptoms.
Synarigen explained that it would have to develop a new study design to address the changes in the pandemic’s nature before it can continue studying the efficacy of its SNG001 COVID-19 drug candidate.
Today’s announcement is another significant setback for the company in developing its SNG001 drug after failing to meet its primary and secondary endpoints in a study of hospitalised patients, causing its stock to crash 92% in late February.
It is hard to be optimistic about SNG001 as a COVID-19 treatment, given the multiple setbacks that have beleaguered the drug’s clinical trials. Maybe its time the company threw in the towel and focused on other projects.
Investors were hopeful that the at-home clinical trials would be successful. However, the in-hospital study failed because patients received the standard of care treatment within the hospital setting.
Richard Marsden, Synairgen’s CEO, commented: “Conducting clinical trials in the time of COVID-19 is challenging but as important now as at the start of the pandemic. Even with an improved standard of care, there remains a critical need to prevent progression to severe disease and death. As such, we are actively seeking inclusion in platform trials for hospitalised patients and are working closely with the NIH to also find a suitable trial for SNG001 in home-based patients.”
Synairgen shares are down 90.3% in 2022 and may look pretty cheap at current prices. However, I wouldn’t buy the shares until the company unveils a new strategy that does not include developing SNG001 as a COVID-19 treatment.
Luckily, the biotech company has another clinical trial testing SNG001 as a treatment for the chronic obstructive pulmonary disease (COPD) in phase 2 studies. In addition, Synairgen also has another program focused on asthma patients in phase 2 clinical trials.
Therefore, all hope is not lost for Synairgen and given that today’s announcement looks like the final nail that will halt the development of SNG001 as a COVID-29 treatment, the worst may be over for the company and its investors.
*This is not investment advice. Always do your due diligence before making investment decisions.
Synairgen share price.
Synairgen share price plunged 34.55% to trade at 16.80p, falling from Wednesday’s closing price of 25.67p.
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Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading