Why Is Cerevel Therapeutics Stock Trading Lower Today?

Cerevel Therapeutics CERE shares are trading lower after the company reported Q2 earnings and a pipeline update.

The company pushed data readout for Emraclidine, an M4-selective positive allosteric modulator (PAM) in development for schizophrenia and Alzheimer's disease psychosis. 

The company now expects data from two schizophrenia trials - EMPOWER-1 and EMPOWER-2 in 2H of 2024 against 1H 2024, expected earlier, citing recent slower-than-expected enrollment in the U.S. and delays in the startup of certain ex-U.S. clinical sites.

To support a potential registrational package for emraclidine in schizophrenia, Cerevel also prioritizes completing the necessary non-clinical and clinical pharmacology studies in addition to its Phase 2 program.

Cerevel Therapeutics initiated Phase 1 multiple ascending dose trials to evaluate the safety, tolerability, and pharmacokinetics of emraclidine in elderly healthy volunteers, 65-85 years old, to support the development in Alzheimer's disease.

Cerevel is conducting a Phase 2a exploratory trial in dementia-related apathy for CVL-871.

Due to the continued challenges clinical sites have experienced in identifying the appropriate patient population for this novel indication, the timeline for this trial is under review.

Earlier data was expected in the second half of 2024.

Cash, cash equivalents, and marketable securities as of June 30, 2023, were $825.1 million sufficient to fund operations into 2025.

Price Action: CERE shares are down 14.50% at $26.20 on the last check Wednesday.