Vaccinex Inc (NASDAQ: VCNX) tanked an alarming 40% on Wednesday despite it reporting positive early-stage results for its Alzheimer’s treatment.
The biotechnology company said its SIGNAL-AD trial established its pepinemab antibody as well-tolerated by patients of AD. A total of 16 clinical sites participated in the study, none of which reported any treatment-related serious adverse event.
Previous trials have already established pepinemab as well-tolerated in patients of multiple sclerosis and Huntington’s disease as well.
Eric Siemers – the principal investigator presented the topline results of SIGNAL-AD study today at the Alzheimer’s Association International Conference in Philadelphia.
Vaccinex stock is now down well over 50% versus its year-to-date high in mid-February.
Significance of SIGNAL-AD trial results
Pepinemab also delivered a statistically significant increase in FDG-PET signal in patients with Alzheimer-related mild cognitive impairment (MCI), as per the press release on Wednesday.
A previous HD study showed pepinemab to be effective in improving performance on a bunch of central cognitive and psychological measures. Maurice Zauderer – the chief executive of Vaccinex Inc told investors today:
We believe that results of the SIGNAL-AD study demonstrate that pepinemab prevents the characteristic disease-related decline of brain metabolic activity in a brain region known to be affected early in disease progression.
The results are significant considering about 7.0 million Americans are currently living with Alzheimer’s. Up to 18% of those aged more than 60 suffer from AD-related MCI, as per the Alzheimer’s Association. Over 30% of them are at risk of developing dementia within five years.
A treatment that can help slow the progression of mild cognitive impairment can essentially extend the productive lifespan of the population at risk.
Still, Vaccinex stock has not so far responded to the positive update on Wednesday.
Vaccinex stock is down despite a narrowed Q1 loss
The news arrived a couple of months after Vaccinex reported its financial results for the first quarter.
VCNX had $3.0 million in cash, including cash equivalents and marketable securities at the end of March – double the $1.5 million it had at the start of 2024.
The biotechnology company lost $3.9 million in its first quarter or $2.94 a share versus $5.0 million or $20.89 per share a year ago. The year-on-year decline in net loss was partially related to R&D costs that were down versus the same quarter last year.
General and administrative expenses, however, inched up to $1.8 million versus $1.7 million last year. Vaccinex stock is not very widely covered by Wall Street.
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