09:50 AM EDT, 06/17/2024 (MT Newswires) -- Aerovate Therapeutics ( AVTE ) fell sharply in early trading on Monday, sinking over 90% after the company said its AV-101 drug candidate failed to reach its primary endpoint during phase 2b testing.

The endpoint for the mid-stage trial of the inhaled form of Novartis' (NVO) iMatinib cancer medication as a prospective treatment for pulmonary arterial hypertension was to show improvement in pulmonary vascular resistance compared to placebo for any of the studied doses.

The trial also missed its secondary target of demonstrating meaningful improvement in the distance patients can walk in six minutes soon after treatment.

Aerovate said it was stopping enrollment and shutting down the phase 3 portion of its testing of AV-101 as well as ending a long-term extension study. The company said it had roughly $100 million in cash, equivalents and short-term investments as of June 15.

Price: 2.44, Change: -22.18, Percent Change: -90.09