CERE - Why Shares of Cerevel Therapeutics Are Dropping Wednesday
2023-08-02 10:47:55 ET
Shares of Cerevel Therapeutics (NASDAQ: CERE) were down more than 14% as of 10:30 a.m. ET on Wednesday after the healthcare company reported second-quarter earnings. The stock is down more than 17% so far this year.
Cerevel focuses on therapies to treat neuroscience diseases, particularly Parkinson's disease, epilepsy, and schizophrenia. The company reported an earnings-per-share (EPS) loss of $0.63 in the second quarter, compared to an EPS loss of $0.61 in the same period a year ago. The clinical-stage biotech company did not report any revenue, but that was expected. As of the end of the quarter, on June 30, Cerevel reported it had $825.1 million in cash, enough to fund operations into 2025, it said.
The finances weren't the biggest culprit for Wednesday's drop, however. The company said that its two phase 2 trials for Emraclidine to treat schizophrenia are being delayed, thanks to slower-than-expected enrollment in the U.S. and delays at some U.S. clinical sites. The company said it expects top-line data for both trials in the second half of next year. The problem is the company has been plagued with trial delays, one likely reason Ron Renaud was named as CEO in June, replacing Tony Coles.
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Why Shares of Cerevel Therapeutics Are Dropping Wednesday