Why Is Cerevel Therapeutics Stock Trading Lower Today?
Portfolio Pulse from Vandana Singh
Cerevel Therapeutics (NASDAQ:CERE) shares are trading lower after the company reported Q2 earnings and a pipeline update. The company has delayed data readout for Emraclidine, a drug in development for schizophrenia and Alzheimer's disease psychosis. The data from two schizophrenia trials is now expected in 2H of 2024, later than the earlier expectation of 1H 2024. The company has also initiated Phase 1 trials for emraclidine in elderly healthy volunteers and is conducting a Phase 2a exploratory trial in dementia-related apathy for CVL-871. The timeline for this trial is under review due to challenges in identifying the appropriate patient population.
August 04, 2023 | 11:54 am
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Cerevel Therapeutics' stock is trading lower due to delays in data readout for Emraclidine and challenges in patient identification for a trial. The company's cash position is strong, with $825.1 million as of June 30, 2023, sufficient to fund operations into 2025.
The company's stock is trading lower due to delays in data readout for Emraclidine, a drug in development for schizophrenia and Alzheimer's disease psychosis. This delay could potentially impact the company's revenue and profitability in the short term. Additionally, the company is facing challenges in identifying the appropriate patient population for a trial, which could further delay the development and potential revenue generation from the drug. However, the company's strong cash position could provide some cushion against these challenges.
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