Why Qualigen Therapeutics (QLGN) Stock Plunging After Q2 Update

Tucked in its Q2 earnings release, Qualigen Therapeutics Inc QLGN announced deprioritizing the QN-165 COVID-19 program, sending shares to fall to a 52-week low.
In July, the Company filed an FDA Investigational New Drug (IND) application to commence Phase 1b/2a clinical studies with QN-165 in hospitalized COVID-19 patients.
But last week, the FDA asked Qualigen to conduct additional preclinical toxicity and safety pharmacology studies.
"Given the time horizon which these suggested studies would require, coupled with the already very crowded COVID-19 vaccine and therapeutic landscape, the best and most prudent strategy for us at this time is to pivot to focusing primarily on our oncology pipeline," commented Michael Poirier Chairman & CEO.
Instead, now the Company plans to focus on the oncology pipeline, including QN-247 and RAS-F assets.
Qualigen ended Q2 with $15.2 million of cash and cash equivalents.
Related: Qualigen Therapeutics Plans to Combat COVID-19 Variants.
Price Action: QLGN shares are down 27.5% at $1.21 during the premarket session on the last check Tuesday.