Following the week-long bullish trend in the case of NuCana PLC (NCNA), the stock is undergoing a significant reversal. Following the close of yesterday’s trading session, the stock value plummeted by 55.10%, to the dismay of those taking long positions in the current market session. This sudden swing comes directly as a result of newly released information making the rounds across the market.
NCNA Hopes Shattered with Discontinuation Announcement
The British biotech, Nucana PLC announced earlier today its decision to discontinue phase 3 trials of Acelarin. The treatment agent for biliary tract cancer was currently undergoing development procedures. A number of investors were betting on this drug’s approval leading to the value breakthrough they were widely anticipating. It did not take long for NCNA stock to plummet shortly after this announcement, as traders swiftly began losing confidence.
The FDA had approved a fast-tracking of the clinical development, a move that raised the hopes of potential investors. Ever since September last year, Nucana PLC has been eagerly putting forward its ambitions with the promising drug. The company’s data monitoring committee pointed to feasibility flaws, deeming it unlikely to meet core project objectives. In response, the company’s founder and CEO, Hugh Griffith expressed serious disappointment to the circumstances faced. He had attributed the development to “the challenges associated with developing new medicines for patients with biliary tract cancer”. The management, however, remains hopeful with regards to two of its other clinical trials addressing treatments for colorectal cancer, as well as lymphoma tumors. The discontinuation of Acelarin does come as a low blow for Nucana, however, the progress of the remaining projects remains critical.
Unprecedented Value Plummet for NCNA
Currently, NCNA is valued at the lowest its been throughout its trading history, which signifies the magnitude of the recent news. This hard plummet had come after a general bullish trend in continuation from August of 2018. This swing had gone on to wipe out over 73% of Nucana’s market capitalization. As of yet, the stock is making a steady rise of 13% following the beginning of the regular trade session. The magnitude of this recovery remains unclear to traders as of yet.
Conclusion
The NCNA stock went through a hard plummet, following news of a discontinued clinical trial by the management. This is the worst-hit the stock has taken since its trade history, and traders are uncertain as to the recovery of the stock’s value.
