Aclaris Therapeutics, a clinical-stage biopharmaceutical company based in Wayne, PA, has experienced a staggering setback as it terminates its most advanced program. This unfortunate development has led to an alarming drop in the company's shares, plummeting nearly 90% and reaching an all-time low.
Market Cap Suffers While Cash Reserves Decrease
Share prices for Aclaris Therapeutics tumbled by 87% on Monday, settling at a mere 60.7 cents per share. Earlier in the session, the stock hit an alarming low of 59 cents. This sharp decline in share value has caused the company's market capitalization to dwindle to approximately $43 million. This figure is less than a quarter of the $187 million cash, equivalents, and marketable securities Aclaris held at the end of September.
Failure in Rheumatoid Arthritis Study Leads to Program Termination
Aclaris has made the difficult decision to discontinue the development of zunsemetinib, its drug candidate that was being tested in a Phase 2b study for moderate-to-severe rheumatoid arthritis. The disappointing results revealed no significant difference between zunsemetinib and the placebo group in terms of efficacy at the 12-week mark of the study. Consequently, the company has halted enrollment in a Phase 2a study of the drug for psoriatic arthritis as well.
ATI-1777 Remains as Aclaris' Leading Clinical Asset
Despite this setback, Aclaris Therapeutics still possesses ATI-1777, which is currently undergoing a Phase 2b study for patients with mild, moderate, or severe atopic dermatitis. This drug now stands as the company's primary clinical asset.
It remains to be seen how Aclaris Therapeutics will recover from this significant blow, but they are determined to move forward and explore new possibilities in the field of biopharmaceuticals.
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