Why Is Hepatitis Player Eiger BioPharma Stock Trading Lower Today?

Eiger BioPharmaceuticals Inc EIGR has discontinued the Phase 3 LIMT-2 study of peginterferon lambda in patients with chronic hepatitis delta (CHD). 

The decision is based on the Data Safety Monitoring Board (DSMB) recommendation for the study following its quarterly safety review. In a communication dated September 7, 2023, the DSMB recommended discontinuing the LIMT-2 study due to observations of four patients with hepatobiliary events that resulted in liver decompensation.

The Phase 3 LIMT-2 study is an open-label, parallel-arm clinical trial that randomized patients with well-compensated CHD infection to one of two treatment groups. In July, the trial completed enrollment of 158 patients.

Also Read: Potential Upside For Eiger's Avexitide In Both PBH And CHI Indications: Analyst.

In June, the company announced it would focus its development efforts on advancing avexitide in hyperinsulinemic hypoglycemia indications. 

The company decided to allocate resources towards the potential of avexitide in treating metabolic diseases, with a primary focus on post-bariatric hypoglycemia (PBH), a condition with significant revenue potential. 

A 25% reduction in workforce and out-of-pocket spending related to its hepatitis delta (HDV) development program and its existing term loan are expected to extend the company's cash runway into Q4 of 2024. 

Price Action: EIGR shares are down 36.20% at $0.44 during the premarket session on the last check Wednesday.