NervGen Pharma stock tumbles following clinical trial results

Published 02/06/2025, 16:24
© Reuters.

Investing.com -- Shares of NervGen Pharma Corp (TSXV:NGEN) (OTCQB:NGENF) plummeted 31.1% after the company released topline data from its Phase 1b/2a clinical trial evaluating NVG-291 in spinal cord injury (SCI). Despite meeting one of its co-primary endpoints, the market responded negatively to the results.

The Vancouver-based biotech firm announced that its lead drug candidate achieved statistical significance on one of the two pre-specified co-primary endpoints by demonstrating increased electrical connectivity between the brain and hand muscle in individuals with cervical SCI. However, the second co-primary endpoint, which evaluated connectivity in a leg muscle, did not achieve statistical significance.

While the study showed a positive trend in the secondary endpoint evaluating change in the “GRASSP” score, a measure designed to assess hand function, it was not sufficient to reach statistical significance. This mixed outcome seems to have sparked investor concern, leading to the sharp decline in NervGen’s stock price.

The company’s President and CEO, Mike Kelly, expressed excitement over the positive study results, highlighting the potential of NVG-291 to promote nervous system repair and provide functional improvement for individuals in the chronic stage of SCI. He also emphasized the importance of changes in upper extremity motor function for individuals living with SCI, as it can significantly improve their independence and performance of daily functions.

NervGen plans to present the topline results from the chronic cohort at the American Spinal Injury Association (ASIA) Annual Scientific Meeting on June 3, 2025, and hold an investor and analyst call on the same day to review the data.

The trial’s principal investigator, Monica A. Perez, PT, Ph.D., recognized the substantial threefold increase in motor evoked potential amplitude as a significant scientific advance. She believes the data underscores the potential of NVG-291 to provide functional restoration and improve the quality of life for people with SCI.

Despite the positive aspects of the trial, the market’s reaction suggests investors may have had higher expectations for the drug’s performance across all endpoints. The lack of clear effects on other secondary endpoints, such as pinch force and 10-meter Walk Test, may also contribute to the cautious stance among shareholders.

As NervGen continues to analyze the data and plans to meet with the FDA to discuss the path forward for NVG-291, investors will be closely monitoring the company’s next steps and any additional insights that may emerge from ongoing analyses.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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