Seelos Therapeutics first reported results from its Phase 2 trial of SLS-002 on Wednesday. The big news here is that the sample size was too small, resulting in the trial failing to meet its primary endpoint.
That caused shares of SEEL stock to take a major beating on Wednesday and that movement is continuing with early morning trading on Thursday. The stock closed Wednesday down 69.5% and is down another 24.6% as of Thursday morning.
How the Study Affects SEEL Stock
Investors were disappointed by the failed study as it only had 147 patients. That comes in below the 220 patients that Seelos Therapeutics needed for a full evaluation of SLS-002 as a treatment for Acute Suicidal Ideation and Behavior (ASIB) in adults with Major Depressive Disorder (MDD).
That’s especially frustrating for investors, as the company notes it may have seen statistical significance if there were enough patients in the study. This has Seelos seeking a meeting with the U.S. Food and Drug Administration (FDA) to determine the path forward for the treatment, MarketWatch notes.
As of this writing, about 2 million shares of SEEL stock have changed hands. For the record, its daily average trading volume is about 1.8 million shares. Also, about 54 million shares changed hands during normal trading hours on Wednesday.
Investors looking for even more of the most recent stock market news will want to keep reading!
InvestorPlace is home to all of the hottest stock market news that traders need to know about on Thursday! That includes everything happening with shares of Near Intelligence (NASDAQ:NIR) stock, Heart Test Laboratories (NASDAQ:HSCS) stock and more. All of that news is ready to go at the links below!
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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.