Why Adagio Therapeutics Stock Is Crashing Today
Shares of Adagio Therapeutics (NASDAQ: ADGI) had crashed 77.9% as of 10:58 a.m. ET on Tuesday. The huge decline came after the company announced that its experimental antibody therapy ADG20 was essentially ineffective in neutralizing the coronavirus omicron variant. Adagio stated that its latest in-vitro data showed a more than 300-fold reduction in neutralizing activity of ADG20 against the Omicron variant compared to an earlier report.
Today's sell-off of the biotech stock was warranted. ADG20 is Adagio's only pipeline candidate in clinical testing. Now, though, the company plans to pause enrollment of patients in its phase 2/3 study being conducted in South Africa. The omicron variant is already the dominant strain in that country.
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