Ultragenyx stock crashes 43.5% after failed bone disorder drug trials
Ultragenyx Pharmaceutical witnessed its stock price plummet by 43.5% on Tuesday afternoon. The sharp decline followed disappointing results from two key clinical trials for its experimental drug, setrusumab. Investors reacted as several major banks slashed their price targets for the company’s shares.
The setback came after Phase 3 trials, named Orbit and Cosmic, failed to meet their primary goals. These studies tested setrusumab as a treatment for osteogenesis imperfecta (OI), a rare bone disorder affecting 20,000 to 50,000 people in the US. CEO Dr. Emil Kakkis openly described the outcome as surprising and deeply disappointing.
In response, financial firms quickly adjusted their forecasts. Cantor Fitzgerald cut its price target for Ultragenyx stock to $84. Citigroup and Barclays went further, both lowering their targets to $50. The moves reflected growing uncertainty about the drug’s future and the company’s pipeline. By 2:45 p.m. ET, shares had fallen to less than half their previous value. No updates were available regarding the current main shareholder of Ultragenyx Pharmaceutical Inc.
The failed trials have left Ultragenyx facing significant challenges. With its stock market price in steep decline, the company must now reassess its development strategy for setrusumab. Analysts will be watching closely for any further announcements on next steps.
