Shares of Evgen Pharma PLC (LON: EVG) have sunk 51.88% on Monday, after an update was provided to investors about the trial of a new SFX-01 product line.
The update provided, informed shareholders of disappointing results with the new product trial, as shares trade at 7.7p 11/11/19 10:38BST.
In the multi-centre, randomised, double-blind, placebo-controlled SAS phase II clinical trial, patients were dosed for a maximum of 28 days following a subarachnoid haemorrhage.
Patients were then monitored for a further five months to assess their recovery by collecting endpoints including cognitive measurements.
The SFX-01 drug produced disappointing results as the trial failed to distinguish between SFX-01 and other placebos.
This comes at a tough time in the pharmaceutical industry for Evgen. Global competitors such as Pfizer (NYSE: PFE) smashed market expectations in their third quarter update.
Additionally, GlaxoSmithKine (LON: GSK) another titan in the industry saw their shares surge after strong profit gains.
We are surprised and disappointed by these findings given the strong preclinical data for sulforaphane in animal models of SAH and other forms of stroke. In March, we reported that SFX-01 had demonstrated positive efficacy and safety data in our STEM trial for metastatic breast cancer, so it is naturally disappointing not to have followed this with another positive result,” said Chief Executive Steve Franklin.
On a positive note, SFX-01 was tested positively with regards to patient safety, and abiding to regulatory criteria.
Speculating for the future, Evgen said it remains well funded and will concentrate its efforts on future partnering.
A concerned effort will be made to develop product formulation for use in STEM II for the treatment of metastatic breast cancer and other investigator-led clinical studies.
“Having achieved our primary endpoints in the metastatic breast cancer phase II trial, and considering our support for investigator-led clinical studies in alternative disease areas, we will continue to pursue attractive commercial opportunities for SFX-01,” added Franklin.
Whilst the big guns are dominating the pharmaceuticals industry, firms such as RA Pharma (NASDAQ: RARX) and UCB (EBR: UCB) have merged to spur product development and innovation.
If Evgen continue to perform within similar trend, shareholders will be worried considering the performance of the bigger players in the industry.