Why Is ADAG Stock Tanking Today?

• Adagene also announced an update from the Phase 1b/2 study of Muzastotug in combination with Keytruda in patients with Microsatellite Stable Colorectal Cancer with no liver metastases.
• The company stated that the results show an improved durability of response among patients in the trials.
• Adagene added that Muzastotug, in combination with Merck’s Keytruda, has received Fast Track designation from the FDA.

Adagene Inc. (ADAG) shares tanked nearly 10% in Thursday’s opening trade after the company announced a slew of updates, including the pricing of a $70 million public offering of its American depository shares.

Adagene priced the public offering at $3.75 per ADS, representing a discount of nearly 19% from ADAG’s closing price on Wednesday. The offering is expected to close on April 6, 2026.

Adagene also announced an update from the Phase 1b/2 study of Muzastotug in Combination with Keytruda in patients with Microsatellite Stable Colorectal Cancer (MSS CRC) with no liver metastases. The company stated that the results show an improved durability of response among patients in the trials.

Retail sentiment on Stocktwits around Adagene trended in the ‘bearish’ territory at the time of writing.

Adagene Provides Update On Muzastotug Trials

The company stated that Muzastotug, in combination with Merck’s Keytruda, achieved an overall response rate (ORR) of 31% in the combined 20 mg/kg dose cohort, compared to an ORR of 13% in the 10 mg/kg dose cohort.

Adagene added that the median duration of response (mDOR) has not yet been achieved in the 20 mg/kg dose cohort, with responses ongoing beyond 9 months. However, the 10 mg/kg dose cohort achieved an mDOR of 6.2 months.

The Progression-Free Survival (PFS) stood at 6.7 months in the 20 mg/kg cohort, outlasting the 4.8 months observed in the 10 mg/kg dose cohort, according to the company.

Adagene stated that Muzastotug, in combination with Merck’s Keytruda, has received Fast Track designation from the U.S. Food and Drug Administration (FDA).

In the 10 mg/kg cohort, the median overall survival was 19.8 months, with 48% of patients alive at two years. In the 20 mg/kg cohort, one-year survival was 80.8%, compared with 70.1% in the 10 mg/kg cohort.

The company added that there was a 4% discontinuation rate across the two doses, and that there were no dose-limiting toxicities observed.

Adagene Teams Up With Incyte

Adagene stated that it has partnered with Incyte Corp. (INCY) to evaluate the combination of muzastotug and INCA33890 in patients with MSS CRC with or without liver metastases.

The company added that as a monotherapy, INCA33890 has demonstrated promising clinical efficacy and safety in immune checkpoint sensitive and insensitive cancers, including MSS CRC with and without liver metastases.

ADAG stock is up 130% year-to-date. The Invesco Golden Dragon China ETF (PGJ) is down 14% over the past 12 months.

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