A wave of negative news on clinical trials and earnings threatens to push Auris Medical Holding AG (NASDAQ:EARS) lower in the market as investors continue to question its prospects in the industry. Late last month the stock shed more than 50% in pre-market trading as the street reacted to reports the company had missed goals on its tinnitus trial. A second-quarter loss of 26 cents a share all but continues to dent the company’s sentiments among investors.
Clinical Trials Impact
The Zug Switzerland Company confirming that its TACTT2 trial for acute ear tinnitus had missed primary efficacy points remains the talk of the Street. Even though Auris insists it is reviewing the data, the stock continues to receive a beating on the street. Mass exodus on the stock appears to be unfolding having emerged that Piper Jaffray exited its entire stake in the recent quarter.
In a bid to avert further mauling on the Street, Auris says it is carrying out a separate late-stage trial ‘HEALOS’ of AM 111 for the treatment acute hearing loss.
“HEALOS has now enrolled more than 125 patients out of the target of 255 patients, and we expect to report top-line results in the second half of next year, in line with previous guidance,” said Chief Executive Officer Thomas Meyer.
The trial is being conducted in Europe and Asia focusing on patients suffering from severe to profound ISSNHL. The company expects the trial to continue as planned at the back of sufficient cash and cash equivalents. As of June 30, 2016, the pharmaceutical company had CHF 32.8 million excluding $12.8 million received from a loan facility.
Auris Medical Holding AG (NASDAQ:EARS) remains the subject of mixed ratings on the market as rating firms react to recent negative news on clinical results and Q2 net loss. Mixed sentiments does not come as a surprise given that the stock is trading way off its 52-week highs of $7.96 a share even on being on an impressive run for the better part of the year.