Biomea slumps as FDA puts diabetes drug trials on clinical hold

Biomea Fusion

07/06/2024 12:51

** Shares of drug developer Biomea Fusion  BMEA.O  slumps
60.07% to $4.50 premarket
    ** Co said on Thursday, it received notice from the U.S. FDA
that a full clinical hold has been placed on ongoing
early-to-mid stage trials of co's drug BMF-219 in type 2 and
type 1 diabetes
    ** The FDA cited deficiencies based on the level of possible
drug-induced liver toxicity concerns
    ** Brokerage Citi slashes PT to $45 from $90, reduces peak
sales estimates for the drug in type 2 diabetes to $1.1 billion
from $2.3 billion
    ** Brokerage Scotiabank cuts PT to $21 from $41
    ** It seems that everyone is in the dark as to the exact
reasons for the liver enzyme elevations, which understandably
creates a significant cloud of uncertainty - Scotiabank
    ** Up to last close, stock down ~23% YTD

 (Reporting by Sriparna Roy in Bengaluru)
 ((Sriparna.Roy@thomsonreuters.com;))