Boston, MA 04/29/2014 (wallstreetpr) – Athersys, Inc. (NASDAQ:ATHX) continues to plunge in the market after reporting unexpected results for its stem cell therapy, aimed at treating patients with a form of inflammatory bowel disease. The Biopharmaceutical Company reported that phase 2 clinical trials of the MultiStem failed to show any meaningful benefit after trials.
Results of the Study
Tests carried by Pfizer Inc. (NYSE:PFE) did not show any significant reduction in the severity of the disease as well as other rectal bleeding when compared to Placebo.
In a new release, Athersys confirmed that results demonstrated favorable safety and tolerability for multisystem in the eight weeks of trial. The downside came from the therapy failing to show any meaningful benefit flowing single administration in patients suffering from ulcerative colitis either being Chronic, moderate-to severe. Investors continue to react angrily seen by the company’s stock plummeting by highs of 3% in mid-morning trading session.
Athersys, Inc. (NASDAQ:ATHX) now plans to carry out a 16 week trial where it expects to provide additional information on the results of the treatment. The results showed patient data after 8 weeks of cell therapy or Placebo administration. Data on second round of dosing on subset patients will also be available. The company CEO maintains that the study had been focused on patient population with Colitis Ulcerative a chronic disease.
Reaction From the market
Athersys, Inc. (NASDAQ:ATHX) anticipates additional data from the studies on patients who received further treatments which may provide a clear insight on factors to work on as well as the relevance of MultiStem. The company CEO also reiterated that the company is now focused on its other clinical and preclinical programs. Having a strong balance sheet essentially means the company is in a position to pursue other exciting and profitable opportunities. Athersys still remains optimistic that MultiStem and other programs are still inline to have a positive effect in the coming years
The unfavorable result from the trials has promoted research analysts at Maxim group to reiterate a “sell” rating on the company’s stock. Athersys, Inc. (NASDAQ:ATHX) last reported its financial results on March 13 in which revenue came in at $0.92 million missing analysts’ estimates of $1.81 million. Revenue for the quarter was also down by 59.8% compared to the same quarter last year
