London, 9th September 2022 – Biopharmaceutical company Ovoca Bio saw a significant drop in its stock prices as shares fell 82% in early trade. The decline comes after the company revealed that a recent study on its drug, Orenetide, did not demonstrate any substantial improvement in female sexual desire when compared to a placebo.
As of 07:25 GMT, Ovoca Bio’s shares were down by 11.50 pence, reaching a low of 2.50 pence.
Specializing in women’s health, the London-listed company announced on Thursday that it will conduct a thorough analysis of the study results to determine its future development strategy for Orenetide. This analysis will help the company decide whether to continue with the drug.
The study, which took place in Australia and New Zealand between 2021 and 2022, aimed to assess the impact of daily doses of Orenetide on the lack or loss of female sexual desire.
At the end of July, Ovoca Bio had a cash reserve of 2.6 million euros ($2.8 million).
“We are surprised and disappointed by the study’s lack of positive findings regarding the superiority of Orenetide over the placebo,” said Daniil Nemenov, Senior Vice President for Clinical Development and Operations. He added, “The company will now conduct a comprehensive review of the study results, including an investigation into potential disparities between these findings and previous clinical trials evaluating Orenetide.”