Synlogic (NASDAQ:SYBX) stock is falling on Friday after the clinical-stage biopharmaceutical company announced the discontinuation of its Synpheny-3 clinical trial.
According to a press release from Synlogic, this decision comes after an internal review of the clinical trial’s progress. This found that labafenogene marselecobac is unlikely to meet its primary endpoint as a treatment for phenylketonuria.
Synlogic preside and CEO Aoife Brennan said the following about the company’s decision.
“It is with a heavy heart that we share this news, and our resulting decision to end Synpheny-3. Based on the program’s progress and data to date, we had expected the study to demonstrate the potential for SYNB1934 to provide an important new treatment option for those affected by PKU.”
What’s Next for SYBX Stock?
The future of Synlogic is unclear as the company also announced plans to explore strategic alternatives. That’s a major red flag as it puts the company on the path to liquidation.
Adding to that is Synlogic ceasing its current operations and laying odd 90% of its employees. That includes Brennan giving up the president and CEO roles while also resigning from its Board of Directors.
With this news comes heavy trading of SYBX stock as traders sell their shares. That has more than 116,000 shares changing hands as of this writing. This is already above the company’s daily average trading volume of about 48,000 shares.
SYBX stock is down 55.1% as of Friday morning.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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