What’s Been Dragging Down CymaBay Therapeutics Stock

Stock price movement

CymaBay Therapeutics (CBAY) closed at $6.17 on June 12, 1.98% higher than its previous close, 28.01% above its 52-week low of $4.82, and 58.87% below its 52-week high of $15. The company has a market capitalization of $419.81 million.

The stock was jolted on June 11, when it dropped by 45.44% and closed at $6.05. This dramatic decline wiped out almost half of the company’s market capitalization in a single day.

The crash was due to CymaBay’s disappointing 12-week top-line data from its ongoing Phase 2b dose-ranging trial evaluating the use of its investigational PPARδ (peroxisome proliferator-activated receptor delta) agonist, seladelpar, in NASH (nonalcoholic steatohepatitis). Although the therapy demonstrated clinically meaningful reductions in liver injury markers, it failed to demonstrate a statistically significant decline in liver fat, the trial’s primary endpoint. CymaBay is now awaiting the trial’s 52-week histology results.

Other NASH players

On June 11, Genfit (GNFT) rose 13.78% to $20.58. Investors waiting on the outcome from its Phase 3 trial, RESOLVE-IT, which evaluates the use of its investigational dual PPARa and PPARδ agonist, elafibranor, in NASH. Data from the trial is expected by the end of fiscal 2019.

On June 11, Gilead Sciences (GILD) closed at $66.10, almost even with its previous close. Although the company has continued to evaluate multiple combination regimens for NASH in midstage trials, it has been impacted by the failure of its investigational NASH asset, selonsertib, in a Phase 3 trial. To know more about the company’s NASH strategy, read How Is Gilead Sciences Revamping Its NASH Strategy in 2019?