PRDS - Pardes slumps ~10% after COVID drug trial failure prompts strategic review

2023-04-03 09:45:13 ET

Pardes Biosciences ( NASDAQ: PRDS ) stock fell ~13% on Monday after the company said it started a review of strategic alternatives after its COVID drug failed a phase 2 trial and oral antiviral's clinical development suspended.

The phase 2 trial enrolled 242 people and evaluated pomotrelvir versus placebo to treat mild-to-moderate COVID-19 in test-positive, symptomatic, otherwise healthy, vaccinated adults without risk factors of developing severe disease.

Pardes said Pomotrelvir did not meet the main goal, measured by the proportion of people below the limit of detection for infectious SARS-CoV-2 on day 3 of treatment, with 70% reaching undetectable levels in the pomotrelvir treated group versus 63% in the placebo group.

The company added that pomotrelvir did not show meaningful improvement over placebo in reduction from baseline of SARS-CoV-2 infectious virus titer or in the reduction from baseline or proportion achieving undetectable viral load (RNA).

Pardes said that due to these data it has decided to suspend further development of pomotrelvir and its board has started a review of strategic alternatives which may include an acquisition, merger, business combination or other transaction.

"However, these unexpected results have forced us to make the difficult decision to suspend further development of pomotrelvir and pursue alternative strategic opportunities for the company," said Pardes Chair and CEO Thomas Wiggans.

As of March 31, the company's preliminary cash, cash equivalents and short-term investments were ~$172.4M.

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