Why Neoleukin Therapeutics Stock Is Down Today
Neoleukin Therapeutics (NASDAQ: NLTX), a clinical-stage biopharmaceutical company, is not ending the week on a positive note. Shares of the drugmaker are dropping sharply on Friday and are down by 10.9% as of 12:33 p.m. EST, after plunging by as much as 21.7% earlier today. The catalyst for these losses is the company's announcement that it has received a Clinical Hold Letter from the U.S. Food and Drug Administration (FDA) for its Investigational New Drug (IND) application for one of its pipeline candidates, NL-201.
Before starting human clinical trials for their experimental medicines, drugmakers must submit an IND application and receive the FDA's green light. This process is costly, time-consuming, and rigorous, and it is something a company would rather do only once for a drug. If the IND application is not approved, the company will have to delay its clinical trials, which leads to additional costs. That is precisely what is happening to Neoleukin Therapeutics.
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Source Fool.com
