Why Are Adagio Shares Plunging Today?

Adagio Therapeutics Inc ADGI shares are plunging during the premarket session after issuing an update following external in vitro analyses to evaluate the neutralizing activity of ADG20 against the omicron variant. 

• The in vitro data generated through both authentic and pseudovirus testing of the omicron variant shows a greater than 300-fold reduction in neutralizing activity of ADG20 against omicron. 
• Additional analyses are ongoing.
• The Company is currently evaluating ADG20 in global Phase 2/3 trials for both the prevention and treatment of COVID-19.
• Adagio plans to pause patient recruitment in its Phase 2/3 COVID-19 treatment trial at clinical sites in South Africa, where omicron has emerged as the dominant variant. 
• Adagio is evaluating the next steps for its ADG20 program.
• In vitro analyses were also conducted on ADG10, the second mAb in development, which showed minimal neutralizing activity against the omicron.
• Related Link: Adagio Says Its COVID-19 Antibody Likely To Retain Activity Against Omicron Variant.
• Price Action: ADGI shares are down 80.10% at $6.82 during the market session on the last check Tuesday.