Annovis Bio‘s (ANVS) much-hyped Alzheimer’s treatment failed to significantly outperform a placebo in a midstage test, leading ANVS stock to plummet on Thursday.
On several measures of cognition, Annovis’ drug called Posiphen showed “positive trends,” but the results weren’t statistically significant. The company remained bullish on its chances, saying Posiphen is effective in both Alzheimer’s and Parkinson’s patients.
But on the stock market today, ANVS stock collapsed 60.3% to close at 43.50. Shares were headed even further down after hours.
ANVS Stock Plummets
Annovis is targeting bad-actor proteins that, it says, impact axonal transport. Axonal transport is how nerve cells communicate with one another. The company suggests improving axonal transport could lead to a cognitive benefit in Alzheimer’s and Parkinson’s patients.
In Alzheimer’s disease, the effectiveness of a drug is measured by several scales. The Posiphen-treated group showed “trends of improvement” on the Alzheimer’s Disease Assessment Scale-Cognitive Subscale, or ADAS-Cog.
There were also “positive trends” on the Mini-Mental State Examination, or MMSE, and the Clinical Dementia Rating Scale Sum of Boxes, or CDR-SB. But the results weren’t statistically significant in Alzheimer’s patients, so ANVS stock took a hit.
On one scale, the Wechsler Adult Intelligence Scale, Posiphen-treated Alzheimer’s patients had an improvement over placebo recipients. But this scale doesn’t appear to be widely used in Alzheimer’s patients.
Highly Rated Stock
Annovis shares have sprinted uphill since Biogen‘s (BIIB) Aduhelm gained approval. Aduhelm is the first Alzheimer’s treatment that modifies an underlying component of the disease rather than just treating the symptoms. Experts are split on whether Aduhelm leads to a cognitive benefit.
The news takes ANVS stock to its lowest point since early June. Prior to Thursday, shares have owned a top-notch Relative Strength Rating of 99, according to IBD Digital. This means ANVS stock has outperformed 99% of stocks in terms of its 12-month performance.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
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