Organon Drops Drug Development For Endometriosis Pain After Mid-Stage Study Fails To Show Results

Healthcare company Organon & Co. (OGN) said on Wednesday that it is discontinuing the development of its investigational candidate for the treatment of endometriosis-related pain after a mid-stage study failed to prove efficacy.

Shares of the company were trading 1% higher at the time of writing.

The company said that the mid-stage study evaluating its OG-6219 in endometriosis-related pain did not demonstrate improvement in moderate-to-severe endometriosis-related overall pelvic pain compared to placebo.

The study was aimed at evaluating the efficacy, safety, and tolerability of three dose levels of OG-6219 in pre-menopausal women 18 to 49 years of age who have been surgically diagnosed with endometriosis. Eligible patients were randomized to receive one of three doses of OG-6219 or placebo orally twice a day.

The primary goal of the study was improvement in the mean endometriosis-related overall pelvic pain score during the third month of treatment.

Endometriosis is a disease in which tissue similar to the lining of the uterus grows outside the uterus, causing severe pain in the pelvis.

Jersey City-headquartered Organon, which was spun off from Merck (MRK), acquired OG-6219 through its acquisition of Forendo Pharma in 2021 for up to $954 million.

Juan Camilo Arjona Ferreira, Head of Research & Development and Chief Medical Officer at Organon, said that the study results were “disappointing.”

On Stocktwits, retail sentiment around Organon jumped from ‘bearish’ to ‘neutral’ territory over the past 24 hours while message volume remained at ‘high’ levels.

According to data from Koyfin, two of seven analysts covering Organon rate it ‘Strong Buy’ while two rate it a ‘Strong Sell’ and three rate it a ‘Hold’.

The stock has an average price target of $14, implying a significant return potential of 39% from the stock’s closing price on Tuesday.

OGN stock is down by 32% this year and by about 50% over the past 12 months.

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