News & Analysis

Evgen Pharmaceuticals reduced to almost penny stock status as 36.7% is wiped off its share price

Andrew Saks, Friday, 9 July 2021

The past few months have been halcyon days for big pharmaceutical companies, many of which have milked the heavily propagandized and government-promoted proponency toward their products, and the competitive nature of the drug industry has been at the very forefront of every aspect of human life globally.

There are always exceptions, however, and it seems that the ones that perform very important tasks such as produce medicines for critical illness have been in some cases struggling.

Evgen Pharma is one example. The company's share price absolutely crashed this morning, with its listing on the London Stock Exchange now displaying at almost penny stock values.

At market open this morning, Evgen Pharma's stock crashed by an incredible 36.7% and is now worth just 4.5p per share.

The company, which specializes in the clinical stage drug development of sulforaphane-based medicines focussed on the treatment of cancer and inflammation.

One of the main factors that caused this massive drop in share price was the interim safety and futility assessment readout of the first 100 patients treated in the STAR COVID-19 trial.

Evgen Pharma made a statement on this having disclosed that its analyses did not meet the interim futility hurdle required to continue the study and that active treatment would not be likely to show an overall statistically significant improvement, therefore recruitment into the trial wil be halted.

It is a very unfortunate indictment of a previously multi-faceted healthcare and pharmaceutical ecosystem that a company's performance lives or dies by its participation in this vaccination race which has been brought into public and media to the extent that it is now part of mainstream influence.

This means that companies that specialize in important research and development like Evgen Pharma are hamstrung by the results of a speculatory trial which in this case has been detrimental to its core business.

Sympathy therefore lies with its shareholders and it can only be said that should right prevail, there is a way out for Evgen Pharma from this loss.

We live in a very different world to just a year ago, that's for sure.

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