By Colin Kellaher

CervoMed shares collapsed Tuesday after the clinical-stage company reported a mid-stage study failure of its lead program.

Shares of the Boston company were recently changing hands at $2.26, down 78%, after touching an all-time low of $2.20 early in the session.

CervoMed said its Phase 2b study of neflamapimod missed its primary and secondary endpoints in the degenerative brain disease dementia with Lewy bodies.

CervoMed said initial analysis shows that target plasma drug concentrations weren't achieved during the double-blind phase of the trial, which the company said may have hurt the study results.

The company said plans for a Phase 3 study are on hold until it completes a full analysis of the Phase 2b results, adding that it expects full data from the double-blind phase next month and data from the first 16 weeks of the open-label extension portion of the study in the second quarter of 2025.

On the heels of the disclosure, analyst Jason Kolbert at D. Boral Capital downgraded shares of CervoMed to hold from buy and removed his $34 price target on the stock pending further clarity on neflamapimod's development pathway.

Write to Colin Kellaher at colin.kellaher@wsj.com

(END) Dow Jones Newswires

December 10, 2024 10:15 ET (15:15 GMT)

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