Why the Bionomics Ltd (ASX:BNO) share price crashed 69% lower today

The Bionomics Ltd (ASX:BNO) share price has crashed 69% lower today after it released the results from its BNC210 PTSD trial…

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

It certainly has been a disappointing day for shareholders of clinical stage biopharmaceutical company Bionomics Ltd (ASX: BNO).

In morning trade the Bionomics share price has returned from its trading halt and crashed a whopping 69% lower to a 52-week low of 15.5 cents.

Why have Bionomics' shares crashed lower today?

This morning Bionomics' shares returned to trade following the results of its phase 2 clinical trial of its BNC210 novel drug candidate in patients with Post Traumatic Stress Disorder (PTSD).

As you may have guessed from the share price reaction, the results fell well short of expectations.

According to the release, the trial comprehensively assessed symptoms in 193 patients with PTSD across 25 sites in the both the United States and in Australia.

While the study found that BNC210 showed excellent tolerability and safety, the trial did not meet its primary endpoint of a decrease in PTSD symptoms as measured by Clinician-Administered PTSD Scale (CAPS-5) at 12 weeks.

CEO and managing director, Dr. Deborah Rathjen, advised that:

"We are extremely disappointed that the primary endpoint in this trial was not met. As we move forward we will focus on the completion of the ongoing Phase 2 trial of BNC210 in hospitalised, elderly patients suffering from agitation which is anticipated to readout in Q1, 2019. We plan to stop all other work on BNC210 until that time. In FY18 Bionomics reduced costs by closing the US operations and reducing overall headcount. In order to maintain and enhance shareholder value, we are continuing to assess our strategic options for partnering and portfolio prioritisation whilst conserving cash."

Although the company does have a pipeline of products under development, BNC210 was seen by many, myself included, as the star of the show.

The fact that BNC210 has been ineffective in this study and that management has suspended all future work on the novel drug, doesn't fill me with confidence that it will ever make it to market.

All being well, one of the company's other candidates will be a success. But until then I would suggest investors stay clear of the company and consider large cap alternatives such as CSL Limited (ASX: CSL) and Mayne Pharma Group Ltd (ASX: MYX).

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on 52-Week Lows

Piggy bank sinking in water symbolising a record low share price.
52-Week Lows

9 ASX 200 shares tumbling to 52-week lows today

Israel's strike on Iran on Friday dragged several ASX 200 shares to new depths.

Read more »

A man holds his head in his hands, despairing at the bad result he's reading on his computer.
52-Week Lows

5 ASX 200 stocks at 52-week lows

These shares are down in the dumps on Tuesday.

Read more »

A male sharemarket analyst sits at his desk looking intently at his laptop with two other monitors next to him showing stock price movements
52-Week Lows

Are Telstra shares a no-brainer for income after hitting a fresh 52-week low?

Let's see what analysts think of the telco giant's shares at this level.

Read more »

A man holds his head in his hands, despairing at the bad result he's reading on his computer.
Industrials Shares

Why is this ASX 200 stock crashing 16% to a 52-week low on Tuesday?

This stock is having a very red start to the week.

Read more »

A man with his back to the camera holds his hands to his head as he looks to a jagged red line trending sharply downward representing the ASX tech share sell-off today
52-Week Lows

3 ASX shares sinking to 52-week lows today

These ASX shares are having a bit of a nightmare this year.

Read more »

Young man sitting at a table in front of a row of pokie machines staring intently at a laptop. looking at the Crown Resorts share price
52-Week Lows

Star Entertainment share price crashes 26% upon return to trade

This is a new 52-week low.

Read more »

Rede arrow on a stock market chart going down.
Materials Shares

Core Lithium and 2 other ASX 200 lithium shares plunging to 52-week lows

Lithium stocks like Core are exploring new lows today.

Read more »

A man looks nervous as he inflates a balloon, scared it might pop.
Materials Shares

Arafura share price resets 52-week low after quarterly update

The rare earths explorer also announced the results of its share purchase plan today.

Read more »