Why Is Humanigen (HGEN) Stock Plunging 79% Today?

  • Humanigen (HGEN) is plummeting on clinical trial data.
  • The company’s Covid-19 treatment failed to reach its primary endpoint.
  • It also didn’t prove to be any better at reducing mortality in patients prescribed it than the standard treatment.
HGEN Stock - Why Is Humanigen (HGEN) Stock Plunging 79% Today?

Source: shutterstock.com/PhotobyTawat

Humanigen (NASDAQ:HGEN) stock is falling hard on Wednesday following the release of preliminary results from a clinical trial to treat patients suffering from Covid-19.

The data comes from the ACTIV-5/BET-B trial being conducted with the National Institute of Allergy and Infectious Diseases (NIAID). This tests the use of lenzilumab alongside remdesivir compared to a placebo and remdesivir in Covid-19 patients.

Unfortunately for holders of HGEN stock, that clinical trial failed to meet its primary endpoint. That was “patients with baseline CRP<150 mg/L and age<85 years, alive and without mechanical ventilation through Day 29.”

To go along with that, Humanigen notes that the clinical trial didn’t see an overall reduction in mortality when compared to the overall patient population. About the ongoing good news from the clinical trial is no new safety signals attributable to lenzilumab.

Cameron Durrant, chairman and CEO of Humanigen, said the following in the news release:

In order to prove the therapeutic benefits of immunomodulators, platform studies comprising thousands of patients have been necessary. With the continued resurgence of COVID-19, further exploration of variant agnostic treatments to improve outcomes in hospitalized COVID-19 patients should be a priority.

Today’s news has HGEN stock experiencing heavy trading today. As of this writing, more than 38 million shares of the stock have been traded. That’s well above its daily average trading volume of about 1.7 million shares.

HGEN stock is down 78.5% as of Wednesday morning.

There’s more recent stock news for traders to read about below!

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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Article printed from InvestorPlace Media, https://investorplace.com/2022/07/why-is-humanigen-hgen-stock-plunging-79-today/.

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