VistaGen Shares Plunge Amid Uncertainty Around Its Anxiety Trial

After the markets closed on Tuesday, VistaGen Therapeutics Inc VTGN reported a Q3 FY23 net loss of $(9.8) million or $(0.05) per share, narrower than the consensus of $(0.07).
William Blair estimated an EPS loss of $(0.06).
VistaGen says that it is not advisable to resume the PALISADE-2 study after failed Phase 3 PALISADE-1 trial of PH94B for the acute treatment of social anxiety disorder (SAD).
Also Read: Vistagen Strengthens Its Neurology-Focused Pipeline With Pherin Pharma Acquisition.
The company now plans to meet with the FDA to discuss the path forward for the program.
A preliminary analysis of data from the PALISADE open-label safety study of acute, as-needed use of PH94B suggests that repeated, as-needed usage may improve symptoms of SAD.
While it is encouraging to see VistaGen continue developing PH94B in anxiety disorders, the analyst awaits further details on these data before revisiting views on the program.
William Blair says that given the uncertainty around the path forward for PH94B and extended timelines to potential commercialization, it rates shares Market Perform.
Price Action: VTGN shares are down 18.75% at $0.2119 on the last check Wednesday.