Cynata Therapeutics (ASX:CYP) failed to meet the primary endpoints of a phase 3 osteoarthritis trial and a phase 2 graft-versus-host disease study, representing "a highly disappointing outcome," Euroz Hartleys said in a Friday report.
The phase 2 results, which showed a lack of efficacy across both the primary and secondary endpoints, are surprising as the earlier phase 1 graft-versus-host disease trial generated encouraging results, the investment firm said.
Following Cynata's decision to discontinue the phase 2 study, the equity research firm considers the company's graft-versus-host disease program to be effectively discontinued in its current form.
Meanwhile, the phase 3 osteoarthritis trial appears to have been impacted by a stronger-than-anticipated placebo response, as the 48.1% response rate to the patient-acceptable symptom state pain threshold in the control group was much higher than the 35% rate assumed in the study's design, Euroz Hartleys said.
It placed its forecasts, recommendation, and price target on Cynata under review.
Shares of Cynata Therapeutics plunged 92% in recent Friday trade.