Why Shares of Design Therapeutics Are Plummeting on Tuesday
Shares of Design Therapeutics (NASDAQ: DSGN) were down more than 69% as of 2:15 p.m. ET on Tuesday. The healthcare company announced phase 1 results for its Friedreich ataxia (FA) therapy, DT-216. The stock is down more than 78% so far this year.
The clinical-stage biotech company released its second-quarter earnings report on Monday after the markets closed. It also announced phase 1 results for DT-216 to treat FA, a rare, inherited disease that causes progressive damage to the nervous system. The disease affects more than 5,000 people in the U.S. and has no approved therapies yet.
The company said the safety profile for DT-216 was good, though it mentioned that some subjects in the study developed injection site reactions to DT-216. The company said a new formulation of the drug wouldn't be ready until the second half of 2024, with results from that dosage expected in the first half of 2025. That pushes back the timeline in which Design could potentially launch its lead pipeline therapy to as late as fiscal 2029.
Source Fool.com
