CRTX - Why Cortexyme's Stock Is Crashing Today
More bad news for Cortexyme (NASDAQ: CRTX) shareholders -- with its stock already down more than 90% from August's peak, as of 1:11 p.m. ET Wednesday, the stock's lost 30.1% of yesterday's closing price. Today's setback is in response to the company's announcement that the U.S. Food and Drug Administration has placed a full clinical hold on trials of its Alzheimer's disease treatment COR388, also called atuzaginstat. At one point, atuzaginstat could have been considered Cortexyme's flagship project.
In retrospect, it can't be terribly surprising. Shares of Cortexyme soared early this year in anticipation of reports that atuzaginstat would perform as the company described. In October, however, an update on the company's phase 2/3 trials of the treatment indicated the drug failed to achieve statistically significant results. That report alone shaved three-fourths of the stock's value in a single day and has continued to chip away at Cortexyme's value in the meantime.
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Why Cortexyme's Stock Is Crashing Today