Richard Glickman, Chairman of Essa’s Board, confirmed that the company is shifting focus to preserve capital, initiating a strategic review
Shares of Essa Pharma, Inc. ($EPIX) plummeted 70% on Friday morning after the company announced it would end its Phase 2 study of masofaniten, its lead drug candidate for prostate cancer.
CEO David Parkinson noted that the trial’s emerging efficacy profile for masofaniten, when combined with enzalutamide, was insufficient to justify continuation.
Richard Glickman, Chairman of Essa’s Board, confirmed that the company is shifting focus to preserve capital, initiating a strategic review to explore options for maximizing shareholder value.
JonesResearch analyst Soumit Roy downgraded Essa Pharma to ‘Hold’ from ‘Buy,’ saying “we were wrong in our assessment of masofaniten’s potential.”
Roy also anticipates the stock to trade at a 40%-50% discount to its cash per share, currently $2.64, until further guidance from management.
On Stocktwits, retail sentiment turned ‘extremely bearish’ (9/100), the lowest in a year, with several users questioning the company’s pipeline viability.
Some predicted a continued slide, with expectations of the stock trading below $1 as large shareholders exit their positions for tax write-offs.
Essa’s stock is down about 20% year-to-date as of Thursday’s close.
Shares of the company are currently trading at their lowest level in over two years.
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