Keyword: Conatus Pharmaceuticals
Conatus’ pan-caspase inhibitor emricasan is one of a pair of drugs for NASH that made it onto our list for 2019, and its failure cost the company a partnership with Novartis that was providing all its revenue and forced it to lay off 40% of its workforce.
This year’s top 15 list has been drawn up to include trials whose failure we judge to have had material consequences on their sponsors and the patients for whom the drugs are being developed. The catalog includes multiple trials for aggressive brain cancer, Alzheimer’s disease, nonalcoholic steatohepatitis and heart disease.
The latest setback prompted Novartis-partnered Conatus to lay off 40% of its staff and begin looking for strategic alternatives.
The latest setback saw the Novartis-partnered liver disease drug fail to beat placebo in NASH patients, wiping another 50% off Conatus’ stock price.
The setback wiped 55% off Conatus’ stock in premarket trading as investors digested the implications of a second midphase failure in eight months.
Conatus Pharma’s lead drug emricasan missed the mark in its first midstage clinical test, driving down its stock.
Novartis has bolstered its R&D portfolio for NASH, a progressive fatty liver disease tipped to become a $20 billion to $35 billion market in the coming years, with its second deal in a month.