Strong clinical trial readouts can lead to surging stock prices and big follow-on public offerings (FOPOs), and in a less rocky market failed trial readouts mean that a biopharma company’s stock price may dip and a FOPO is not imminent. In the current volatile environment for publicly traded firms, failed studies are leading to significant cost cuts, massive layoffs and searches for strategic alternatives that may ultimately lead to dissolution of drug developers.
Aileron Therapeutics, Inc, Talaris Therapeutics, Inc. and Frequency Therapeutics Inc. are the latest companies to simultaneously disclose...