ZVRA Stock Plummets Pre-Market, Heads For Worst Day In Over 5 Years – What’s Driving The Sell-Off?

• The EMA said that the efficacy of Meplyffa had not been sufficiently demonstrated.
• It added that there were uncertainties about the reliability and robustness of the results.
• Zevra stated that it plans to request a re-examination of the opinion and submit a detailed explanation.

Shares of Zevra Therapeutics Inc (ZVRA) crashed 30% in pre-market trading on Friday, and are on track to clock their biggest single-day losses since January 2021, after the European Medicines Agency recommended refusing marketing authorization for its therapy for Niemann-Pick disease type C (NPC), a rare and progressive genetic disorder.

ZVRA stock is currently on track to hit its lowest levels in nearly four months and appears set to open below the crucial 200-day moving average for the first time since April.

What Is Meplyffa?

Meplyffa, which was already approved by the U.S. Food and Drug Administration in September 2024, is used for the treatment of NPC in combination with Miglustat. The therapy works by improving lysosomal function and reducing the buildup of unesterified cholesterol in cells affected by the disease.

Zevra’s application was supported by a one-year study involving 50 children and adolescents, comparing Meplyffa with a placebo while patients continued standard care. Researchers measured disease progression using the 5-domain NPC Clinical Severity Scale, which evaluates walking, swallowing, cognition, speech, and fine motor skills.

A previous application for this medicine under the name Miplyffa was withdrawn in March 2022, the EMA statement read.

Why Did EMA Reject The Application?

The EMA concluded that Meplyffa's effectiveness had not been sufficiently demonstrated. It cited uncertainties in how the trial data were handled and analyzed, raising concerns about the reliability of the results. The agency also noted that the treatment showed no meaningful benefit in walking ability or cognitive function.

While a subgroup of patients taking Miglustat appeared to benefit, the evidence was not considered strong enough because the overall study did not meet its effectiveness goals.

The EMA acknowledged the significant unmet medical need for NPC and considered input from patient organizations during its review.

Zevra stated on Friday that it plans to request a re-examination of the opinion and submit a detailed explanation outlining the basis for the request.

Retail Says Selloff A ‘Wild Overreaction’

Despite the slump, retail sentiment on Stocktwits remained in the ‘extremely bullish’ zone over the past 24 hours. ZVRA was among the top trending tickers on the platform at the time of writing.

One bullish user said that despite the setback, the stock will recover with “strong earnings in August.”

Another user said the “price drop seems like a wild overreaction.”

The stock is up around 50% so far this year.

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