Chinook Therapeutics Trial Pause: Unfortunate But Analyst Reassures No Damage To Value Drivers

Chinook Therapeutics Inc KDNY has voluntarily paused dosing in the Phase 1 trial of CHK-336 in healthy volunteers to allow a thorough investigation of a serious adverse event (SAE) that occurred in a single subject following the first dose in the 125 mg multiple ascending dose (MAD) group.
The event has been reported to the FDA through a Suspected Unexpected Severe Adverse Reaction (SUSAR) report.
The SAE had a rapid onset and rapid recovery; follow-up of the subject is ongoing.
The underlying cause of the event is being investigated as a potential hypersensitivity reaction to the study drug or its excipients.
Also Read: Analyst Views Multiple Opportunities For Chinook To Thrive In Emerging Renal Markets, Sees More Than 100% Upside.
Previously, CHK-336 was generally well tolerated in 62 subjects at single doses up to 500 mg and multiple doses up to 60 mg daily for 14 days.
William Blair says that while the prospects of CHK-336 for hyperoxaluria have been intriguing, the program has not been viewed as a value driver for Chinook.
The analyst remains focused on key upcoming catalysts, such as the Phase 3 ALIGN trial with atrasentan, expected in Q4 2023.
It maintains Outperform rating and says any pullback presents a buying opportunity for the shares.
Price Action: KDNY shares are down 4.12% at $20.71 on the last check Tuesday.