What's Going On With VistaGen Therapeutics Stock?

VistaGen Therapeutics Inc VTGN shares are trading lower Tuesday. The stock appears to be pulling back after soaring more than 675% on Monday. 

What Happened: VistaGen shares surged Monday after the company said its Phase 3 PALISADE-2 trial of fasedienol nasal spray for adults diagnosed with social anxiety disorder met the primary and secondary endpoints.

Fasedienol demonstrated a statistically significant difference in average SUDS score during a public speaking challenge compared to placebo, the company said. The trial also demonstrated a statistically significant difference in the proportion of clinician-assessed responders between fasedienol and placebo.

The Phase 3 PALISADE-2 trial represented the first positive U.S. Phase 3 study of an investigational therapy for social anxiety disorder in over 15 years.

"We are thrilled that these compelling top-line results from the Phase 3 PALISADE-2 trial confirm what was seen in the Phase 2 studies in social anxiety disorder and highlight the potential for fasedienol, with its novel and unique proposed mechanism of action, to transform what is possible for more than 25 million people living with social anxiety in the U.S. and millions more affected worldwide," said Shawn Singh, CEO of Vistagen.

Following the announcement, Maxim Group analyst Jason McCarthy upgraded VistaGen from Hold to Buy and set a $30 price target.

See Also: Weight Loss Drug Maker Eli Lilly Stock Soars Amid Mounjaro Sales, Diabetes Treatment In Second Quarter

VTGN Price Action: VistaGen shares surged on above average volume Monday. The stock was trending across social platforms most of the day and closed Monday's session up 676.8% at $13.05. 

The stock was down 14.6% at $11.14 Tuesday morning, according to Benzinga Pro.

Photo: Lorenzo Cafaro from Pixabay.