GlycoMimetics Shares Take a Nose Dive As Uproleselan Phase 3 Trial Results Miss

In a recent shift of market sentiments, GlycoMimetics (NASDAQ:GLYC), a biotechnology company, has experienced changes in analyst ratings as its stock nosedived in the past days.

Capital One Financial has downgraded the company’s shares from an overweight rating to an equal weight rating. H.C. Wainwright also mirrored Capital One's sentiments and downgraded GlycoMimetics to Neutral from Buy and removed the firm's prior $8 price target.

The share price plummeted a whopping 82.02% on May 6th as the company delivered the unfortunate news of their results from their phase 3 trial of the global pivotal study of uproleselan in relapsed/refractory acute myeloid leukemia (R/R AML). The stock is now trading around 52 week lows, having shed almost 90% YTD.

The phase 3 study included 388 patients and assessed uproleselan in combination with either MEC (mitoxantrone, etoposide, and cytarabine) or FAI (fludarabine, cytarabine, and idarubicin) in patients with relapsed or refractory acute myeloid leukemia (R/R AML).

Patients were administered either uproleselan or a placebo for 8 days during one induction cycle and, if applicable, up to three consolidation cycles. The study’s primary endpoint was overall survival without accounting for transplant. Secondary endpoints included the incidence of severe oral mucositis, complete remission, and overall remission rates.

In results, the combination of uproleselan with chemotherapy did not show a statistically significant improvement in overall survival compared to chemotherapy alone in the intent-to-treat population.

Patients receiving uproleselan had a median overall survival of 13 months, slightly higher than the 12.3 months observed in the placebo group. The adverse events reported were consistent with the known side effects of the chemotherapy regimens used in the trial.

GlycoMimetics, which operates within the biotechnology sector, has a current market capitalisation of $19.23 million.

For the latest quarter, GlycoMimetics reported earnings of ($0.14) per share (EPS), which slightly outdid the consensus estimates from analysts by $0.01. In addition to the recent performance, research analysts are speculating that GlycoMimetics is predicted to post an EPS of -$0.54 for the running fiscal year.

The spotlight on GlycoMimetics is not solely from the analytical domain. The company has caught the attention of institutional investors such as MJP Associates Inc. ADV, Acuta Capital Partners LLC, and Advisor OS LLC, which have all acquired stakes within the enterprise.

The central operation of GlycoMimetics revolves around the development of glycobiology-based therapies. The company’s primary focus extends to concocting treatments for severe medical conditions such as cancers, which includes acute myeloid leukemia (AML), and a variety of inflammatory diseases, catering its research and development efforts to the needs of the United States healthcare market.

What the future holds for GLYC holders is an ever expanding question, but markets will be monitoring the ever-evolving landscape of healthcare innovations in companies such as these for longer than one unsuccessful cycle. There is more risk in pricing in Biotech when things do not go exactly to plan, and these swings can go in both directions, which direction next is the big question?