Why DBV Technologies Stock Is Plunging Today
Shares of DBV Technologies (NASDAQ: DBVT) were down a whopping 41.6% as of 11:41 a.m. EDT on Tuesday. The catalyst for this sell-off was the company's announcement that it has received a complete response letter from the Food and Drug Administration regarding its Biologics License Application (BLA) for Viaskin, a potential treatment for peanut allergy.
Viaskin is a patch designed to desensitize a patient's immune system by exposing the patient to increased amounts of peanut protein. But the FDA has questioned the effect of patch adhesion on the efficacy of Viaskin, and the agency requested additional data to clear up this issue. DBV Technologies complied with this request, but it seems it wasn't enough to please the FDA. This morning, the France-based biotech reported that the FDA would not approve Viaskin's BLA "in its present form."
Image source: Getty Images.
Source Fool.com
