Upon announcing this news dropped the stock dropped to the $3.00 range. It was already struggling to maintain that valuation for the past two years. If you bought in at the May 2018 IPO, share prices were $17.00, with 5,000,000 shares being sold to the public. The problem with selling Unity Biotechnology stock at this point is you’ll be taking a huge loss. This pivot could leave the company many years from generating revenue and has investors feeling uneasy. It will continue through the 24 weeks to complete the trial, but the outlook isn’t good so far. This means the company is abandoning its Phase 3 clinical trials, which means the company is going to focus on its ophthalmology, pulmonary, and neurology treatments that are still far behind clinical trials. Midway through the Phase 2 study, the drug’s 12-week results on 183 patients failed to show any noticeable difference between the treatment at any dosage and placebo. This small-molecule protein interaction destroys the senescent cells, which theoretically should reduce the pain.īut that’s not what the results are showing so far. The theory is that by inhibiting p53/MDM2 cells through localized therapy, the drug could mitigate pain related to OA, ophthalmology, pulmonary, and musculoskeletal disease. The drug is meant to treat moderate to severe osteoarthritis (OA) in the knee. The reason for Unity’s stock value falling is directly tied to the results of its second-phase clinical results for UBX0101. Now it’s time to decide is Unity Biotechnology stock overvalued, or has it deflated to its realistic worth based on the available information? Why Did Unity Biotechnology Stock Fall? While the company’s approach to developing a drug pipeline is nothing new, it was untested for decades due to insufficient life technologies. Now the company is experiencing all-time lows, and investor confidence is waning as one of its products, UBX0101, shows dismal results in its phase 2 clinical study. It has two major product developments in clinical trials in 2020, and the results of these trials heavily impact the firm’s ability to get money in the aftermath of health tech failures like Theranos. Unity Biotechnology is an anti-aging startup focused on senescent cells. The company’s stock price plummeted by 75% at the end of the month, after experiencing gains in the preceding quarter. Is Unity Biotechnology Stock a Sell? The drug game isn’t easy, and this is a lesson Unity Biotechnology Inc ( NASDAQ:UBX) learned the hard way in August 2020.
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