This Stock Lost 71% Of Value After Anxiety Therapy Missed Key Goals – But Retail Believes It’s Oversold, Says Won’t Panic-Sell

• The treatment did not show any difference between subjects receiving the drug and the placebo group for the secondary endpoints.
• However, the study showed that data from safety, tolerability, and post-hoc analysis were positive.
• The company now plans to discuss with the FDA a potential registrational pathway for Fasedienol focused on the overall treatment of social anxiety disorder.

Shares of Vistagen (VTGN) crashed on Tuesday after the company said its anxiety therapy, Fasedienol, did not meet key goals in a late-stage trial.

At the time of writing, VTGN was down more than 71% and on track to hit a record low.

Findings From VTGN’s PALISADE-4 Phase 3 Trial

The company said that Fasedienol did not show statistically significant improvements on primary and secondary endpoints. Moreover, the treatment did not show any difference between subjects receiving the drug and the placebo group for the secondary endpoints.

However, data on its safety and tolerability were consistent with those from previous placebo-controlled studies. Also, during a post-hoc analysis, Vistagen observed that Fasedienol achieved a nominal improvement for the primary endpoint in patients with very severe social anxiety disorder.

VTGN: Next Steps

The company said it now plans to move on from the acute treatment of social anxiety disorder symptoms and will discuss with the Food and Drug Administration regarding a potential registrational pathway for Fasedienol focused on the overall treatment of social anxiety disorder.

“The results of the primary analysis of PALISADE-4 were not what we had hoped for. However, we are encouraged by the safety and tolerability data and our post-hoc analysis,” said Angel Angelov, Chief Medical Officer at Vistagen. “As we look at the totality of data across the fasedienol development program, we believe there is evidence of fasedienol’s therapeutic potential for patients with social anxiety disorder.”

What Do Retail Traders Think About VTGN?

On Stocktwits, retail sentiment on VTGN remained in ‘extremely bullish’ territory over the last 24 hours.

One user believes the stock is oversold and said they won’t panic-sell.

VTGN stock has gained about 15% so far this year but has declined roughly 90% over the last 12 months.

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