Why Is Cancer Drug-Developer Nkarta Stock Trading Lower On Friday?
Portfolio Pulse from Vandana Singh
Nkarta Inc (NASDAQ:NKTX) stock fell 29.4% to $9.17 after announcing the deprioritization of its NKX101 cancer drug program following a review of preliminary safety and response data. The company is redirecting resources to its lead pipeline program, NKX019, for autoimmune disease. Despite initial promising results, the aggregate CR/CRi rate for NKX101 in a clinical trial was lower than expected. Nkarta plans to focus on NKX019, with a study on lupus nephritis set to begin in the first half of 2024. As of December 31, 2023, Nkarta reported having sufficient funds to support operations into 2026.

March 22, 2024 | 5:49 pm
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Nkarta Inc's stock fell after announcing the deprioritization of its NKX101 program due to lower than expected trial results, shifting focus to NKX019 for autoimmune diseases.
The stock price of Nkarta Inc dropped significantly due to the announcement of deprioritizing the NKX101 program based on unsatisfactory trial results and reallocating resources to another program, NKX019. This strategic shift and the underwhelming performance of NKX101 likely led to investor concerns about the company's near-term prospects, resulting in the stock price decline.
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