Helixmith stock falls after clinical failure of gene therapy candidate

[Courtesy of Helixmith]

Shares of Helixmith Co., a South Korean biotechnology company, are on a downfall following the failure of its gene therapy candidate in a clinical trial in the United States.

Shares of Helixmith were trading at 3,955 won ($3.02) as of 10:20 a.m. Thursday, down 6.94 percent from the previous session.

The stock fell to the price limit on Wednesday when the company announced that its gene therapy candidate Engensis (VM202) did not meet its primary endpoint in a U.S. Phase 3 clinical trial for diabetic peripheral neuropathy (DPN).

However, the company said that the results from the trial were based on the analysis of only a few of key endpoints and that it will continue to analyze secondary and exploratory endpoints over the next two months.

As the clinical trial failed, Helixmith plans to expedite the clinical development of Engensis for another indication, foot ulcers, which is currently underway in the U.S.