Why Is Graybug Vision Stock Plunging Today?

Graybug Vision Inc (NASDAQ: GRAY) shares are dropping after preliminary data from Phase 2b ALTISSIMO trial of GB-102 for wet age-related macular degeneration (wet AMD).

• Investors are reacting to the mean change of best-corrected visual acuity (BCVA) from the baseline that was lower in GB-102 1mg than aflibercept arm.
• The mean change from baseline for BCVA for all 20 completers was approximately nine letters lower across all time points versus the study control arm.
• The study was designed to evaluate two separate doses of GB-102, 1mg, and 2mg, injected every six months compared with Regeneron Pharmaceuticals Inc's (NASDAQ: REGN) Eylea (aflibercept) injected every two months.
• After interim safety analysis, the 2mg dose was discontinued after the initial dose, and all patients were switched to 1mg for their second dose.
• The median time to first supportive therapy was five months for GB-102 1mg (primary endpoint of the study).
• Central subfield thickness of the retina in the GB-102 1mg arm was consistent with the study control arm.
• GB-102, the company's lead product candidate, is a microparticle depot formulation of sunitinib malate, injected intravitreally.
• Sunitinib is marketed as Sutent by Pfizer Inc (NYSE: PFE).
• Piper Sandler has downgraded GRAY to Neutral with a price target of $10 from $27 earlier.
• Price Action: GRAY shares fell 48.2% at $7.65 in market trading hours on the last check Tuesday.