Long-term investors of Third Harmonic Bio (NASDAQ:THRD) are feeling some discomfort today, to put it mildly. This morning, THRD stock is losing the majority of its value because the company halted a clinical trial. Apparently, Third Harmonic did this due to safety-related issues.
Third Harmonic Bio is a small clinical-stage biopharmaceutical company with a market capitalization of around $175 million. When a business is as small as that, a single news item can have a profound impact on shares.
Today, financial traders are seeing a textbook example of this, as Third Harmonic Bio just issued an important press release. Specifically, the company disclosed that it has stopped the Phase 1b study of THB001. That’s Third Harmonic Bio’s investigational drug candidate for chronic inducible urticaria, which is an inflammatory skin condition.
Asymptomatic liver transaminitis was reportedly observed in two test subjects “enrolled in the first dose cohort” for the THB001 trial. Consequently, Third Harmonic Bio chose to halt the clinical study.
What’s Happening With THRD Stock?
As you might imagine, Third Harmonic Bio shareholders aren’t too happy with this development. Yet, it has still been amazing to witness THRD stock lose more than 75% of its value this morning.
Nonetheless, Third Harmonic CEO Natalie Holles seems optimistic about THB001’s future prospects. “[W]e are encouraged by the preliminary signs of clinical activity at this starting dose,” Holles stated.
Furthermore, Holles teased an “anticipated nomination of a new development candidate next year.” So, there may be a successor to THB001 in 2023. The press release also assured that Third Harmonic Bio “is initiating nonclinical studies to elucidate the mechanism for the observed transaminitis.”
In other words, this might not be the end of the road for Third Harmonic Bio. Given today’s drastic price action in THRD stock, however, it certainly feels like the company has some catching up to do.
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On the date of publication, David Moadel did not hold (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.