VTGN - Vistagen downgraded to neutral at Baird on pivotal trial failure
- Baird has downgraded Vistagen ( NASDAQ: VTGN ) after a phase 3 trial for anxiety medication PH94B failed to meet its primary endpoint .
- The firm removed its $9 price target. The stock closed at $0.15 Friday following the news, dropping 86% that day.
- Analyst Brian Skorney said that the results from the PALISADE-1 trial "permanently impairs this asset" even though the company will continue a parallel late-stage trial of PH94B, PALISADE-2, in social anxiety disorder.
- "We believe the placebo-like safety profile and placebo-like efficacy result in PALISADE-1 most likely indicate PH94b is a placebo," Skorney wrote.
- Seeking Alpha's Quant Rating viewed Vistagen ( VTGN ) as a strong sell even before the PH94B results came out.
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Vistagen downgraded to neutral at Baird on pivotal trial failure