(AmericanProsperity.com) – Last year, the drug company Amylyx Pharmaceuticals saw a boost in its stock price after starting a clinical trial for patients suffering from amyotrophic lateral sclerosis (ALS). Its promising drug, submitted as AMX0035, lost its luster, unfortunately, after the Food and Drug Administration (FDA) handed down some bad news.
The buzz about the drug began when the FDA recommended to the company that they apply for approval for the drug before completing the crucial phase three of trials. Investors perked up, and Amylyx rode a wave of prosperity.
$AMLX Here’s Why Amylyx Pharmaceuticals Stock Is Getting Hammered On Monday https://t.co/8QXesBDk8H
— Bio & Tech Stock Focus (@MarcJacksonLA) March 28, 2022
The wave came crashing down, however, when the FDA declined to approve the drug, calling in question the efficacy of the treatment against ALS as well as the methodology of the trial itself. The agency found that without further study, the results were inconclusive. Investors responded immediately to the concerns, tanking the stock by more than half.
Amylyx continues to work with the product in ongoing phase three trials, anticipating the science will show their drug’s effectiveness. The company made mistakes with phase two including failing to use a proper placebo control group. Investors looking to recuperate their losses will have to hang in there and hope the pill comes through.
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