What happened to cause such a large share price drop for ASX:IIL?
Innate Immunotherapies [ASX:IIL], a medical biotech company, has seen its share price hammered today. The company has been in a trading halt since Friday afternoon after it received results from one of their clinical trials. Innate had been working on a drug to treat multiple sclerosis. Today they announced that the MIS416 drug had no effect in treating patients. The news is dire for both the company and investors.
Innate invited shareholders to participate in an investor conference call earlier this morning. Though it looks to have done little to ease the offloading of shares.
What now for Innate?
Simon Wilkinson, CEO, states the results were ‘a shock’ and did not align with previous indications. He believes the results are as distressing for investors as they are MS sufferers, with few treatments for the illness. Innate will now be looking into alternative uses for the drug moving forward.
The short term future for the company will be rough, having just recently publicised their full year earnings last week. In it they stated, ‘The outlook for the Group relies principally on the results of this study (MIS416)’. Their share price shows the market felt the same way, and now they’re being punished for it.
Junior Analyst, Money Morning
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