Oncternal Therapeutics (NASDAQ:ONCT) stock is falling hard on Tuesday after the company decided to end two clinical trials.
Oncternal Therapeutics has announced that it’s closing its Zilovertamab Phase 3 Study ZILO-301 and its Phase 1/2 Study CIRM-0001 study. The company says these changes are being made as a result of the “changing therapeutic landscape.”
Specifically, Oncternal Therapeutics attributes this decision to the market for Bruton’s tyrosine kinase inhibitors. These closings will affect other projects and will result in reduced spending. That will give the company “cash runway into 2025.”
What This Means for ONCT Stock
Considering the money spent on these clinical trials and drug developments, it makes sense that ONCT stock is falling today. However, the company doesn’t plan to give up on all of its products in development.
Oncternal Therapeutics says that it will continue to focus on the development of ONCT-808 and ONCT-534. ONCT-808 is a autologous CAR T cell therapy and ONCT-534 is a novel dual-action androgen receptor inhibitor. The company is betting on positive clinical trials of these after closing its other studies.
ONCT stock is taking a beating alongside heavy trading today. This has some 1.4 million shares changing hands as investors sell shares. For comparison, the company’s daily average trading volume is closer to 238,000 shares.
ONCT stock is down 62% during pre-market trading on Tuesday!
Investors seeking more of the latest stock market news will want to stick around.
InvestorPlace is home to all of the hottest stock market news traders need to know about on Tuesday! A few examples include why shares of Multi Ways (NYSEMKT:MWG) and Butterfly Network (NYSE:BFLY) stock are rising, as well as the biggest pre-market stock movers this morning. You can find all of that news at the following links!
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On the date of publication, William White 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.
