Acelyrin (NASDAQ:SLRN) shares plummeted by 58% in premarket trading following disappointing results from a clinical trial of its lead product, izokibep.
This drug is designed for patients with hidradenitis suppurativa (HS), a chronic inflammatory skin condition.
Acelyrin's founder and CEO, Shao-Lee Lin, acknowledged the trial's overall failure to meet statistical significance but pointed out positive aspects.
"Although the overall study did not meet statistical significance, izokibep appears to be demonstrating consistent early and high orders of response for patients suffering from hidradenitis suppurativa without safety or tolerability limitations," he said.
MoonLake Immunotherapeutics (NASDAQ:MLTX) shares rose 15.5% on the news as it mitigates the risk from a competitor.
Analysts expressed disappointment, with Piper Sandler noting the "puzzling" dropout rates in the trial. Still, the analysts remain Overweight-rated on the stock.
“Yes we are surprised about this data driven by puzzling dropout rates across all arms. However, SLRN has $823M cash ($8 per share) and 4 direct and 11 indirect catalysts that should keep the stock momentum to regain value with key PsA readout expected in 1Q24, which should drive significant share gains,” they wrote in a note.
Cantor Fitzgerald analysts said the news is a ‘big positive’ for MLTX.
“The issues in the SLRN HS trial seem to be drug-specific (high discontinuations), according to the PR, along with maybe some trial execution issues given the higher-than-expected placebo response,” they commented.