ARCA Biopharma Inc (NASDAQ: ABIO) is having a slight rebound in the market today. Yesterday, the company issued a press release announcing clinical data from a key clinical trial. The data missed the target, leading to fear and sending the stock on a run for the bottom. The small recovery today on 8 mm shares following a drop from $1.70 to $0.40 yesterday. Nonetheless, a recovery seems to be starting.
ABIO Starts To Recover After Releasing Clinical Data
As mentioned above, ARCA Biopharma is having an incredibly strong time in the market this morning after reporting clinical data that sent the stock downward yesterday. In a recent press release, the company announced clinical results from a Phase 2B, double-blined, superiority clinical trial known as GENETIC-AF. In the trial, the company evaluated GencaroTM, a genetically targeted treatment for atrial fibrillaiton (AF) in patients with heart failure and reduced left ventricular ejection fraction.
In the release, ABIO said that all patients demonstrated similar treatment benefit compared to the active control. In US patients, a trend surrounding potential superior benefit in favor of Gencaro was observed for the primary endpoint of time to recurrence of AF. Also, in the US, the treatment demonstrated a trend of potential superior benefit in favor of Gencaro in a subset of patients who underwent continuous heart rhythm monitoring with Medtronic implanted devices. Finally, the company said that safety data indicated that the treatment was generally safe and well-tolerated in the AF/heart failure population. In a statement, Dr. Debra Marshall, SVP of Medical Affairs at ABIO, had the following to offer:
“The U.S. data support our pre-trial assumptions and provide contemporary information to potentially design Phase 3 development of Gencaro…. I would like to thank our clinical investigators as well as the patients and their families, for their participation in this study”.
The Stock Falls On News
While the data seemed to be overwhelmingly positive, the stock fell yesterday as the news broke. The reason is relatively simple. At the end of the day, while the US population did show a benefit toward the treatment being tested hear, overall, the efficacy came in line in the superiority test. So, all in all, the treatment did not prove to be superior to the control, leading to fear and sending the stock downward. Nonetheless, the stock is working to recover today.
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