Why Is Rare Endocrine Disorder-Focused Spruce Biosciences Stock Plummeting On Thursday?
Portfolio Pulse from Vandana Singh
Spruce Biosciences Inc (NASDAQ:SPRB) stock plummeted after releasing topline results from its Phase 2b studies of tildacerfont in congenital adrenal hyperplasia (CAH). The CAHmelia-203 study failed to meet its primary efficacy endpoint, while the CAHptain-205 study in pediatric patients showed better outcomes. Despite this, SPRB shares dropped 77.80% to $1.15 in premarket trading. The company plans to prioritize resources and reduce costs, including terminating the CAHmelia-203 trial and reducing its workforce by 21%, to extend its cash runway through the end of 2025.
March 14, 2024 | 1:19 pm
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Spruce Biosciences' stock plummeted following mixed Phase 2b study results of tildacerfont in CAH, with a significant drop of 77.80% to $1.15 in premarket trading.
The significant drop in SPRB's stock price is directly related to the disappointing results from the CAHmelia-203 study, which failed to meet its primary efficacy endpoint. Although the CAHptain-205 study in pediatric patients showed more positive outcomes, the overall negative market reaction reflects concerns over the company's future prospects and the decision to terminate the CAHmelia-203 trial and reduce workforce by 21% to manage costs.
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