Shares in Auris Medical Holding AG (NASDAQ:EARS) on Friday slid 12.06% to a new 52-week low of $1.21 before closing at $1.25.
The move is an extension of the downtrend that commenced on October 11, after the stock spent September in a sideways consolidation.
It appears investors are yet to recover from the shock of August 18, when the stock crashed nearly 60% on account of a drug trial miss and a loss in the second quarter.
Auris Medical Holding AG (EARS), a clinical-stage company dedicated to developing therapeutics that address important unmet medical needs in otolaryngology (diseases and disorders of the ear, nose and throat), is developing Keyzilen (AM-101) for the treatment of acute inner ear tinnitus.
Auris Medical Holding AG (NASDAQ:EARS): Investors cold shoulder update on Keyzilen
On October 11, Auris’ update on the development of Keyzilen stated that “based on insights from the recently completed TACTT2 trial, the Company was submitting a protocol amendment to regulatory agencies in Europe for TACTT3, the ongoing second Phase 3 clinical trial.”
It appears that investors are not too optimistic about the new trial.
It may be recalled that in August the company said the TACTT2 trial failed to confirm the efficacy of Keyzilen because the drug did not produce significant changes in tinnitus loudness and tinnitus burden when compared to patients who received a placebo.
“New knowledge gained from the TACTT2 trial allows us to make appropriate adjustments to the TACTT3 trial while we are still fully blinded to its outcomes,” said Thomas Meyer, founder, Chairman and Chief Executive Officer. “We believe that the measures outlined today will improve the probability of success of the TACTT3 trial for the entire study population as well as for key patient subgroups.”
In August, Auris reported Q2 2016 net loss of CHF 8.43 million, or CHF 0.25 per share. During the quarter, it received a loan of $12.5 million from Hercules Capital, Inc.
As at end June the company had cash and cash equivalents of CHF 32.8 million, which, if taken together with the aforesaid loan, will be adequate to fund operations until year-end 2017.