Shares of AlloVir Inc. (ALVR) experienced a drastic decline of 66.6%, closing below $1 for the first time in its history. The immunotherapy company made the decision to discontinue the Phase 3 trials on posoleucel, a T cell therapy aimed at addressing various pathogens in immunocompromised individuals, citing "futility."
AlloVir's stock suffered the largest decline among all major U.S. exchanges, marking its most significant drop since its initial public offering in July 2020. An incredibly high trading volume of 23.1 million shares was recorded, far surpassing the usual daily average of approximately 920,000.
Determination Based on Data Analysis
According to AlloVir, the company arrived at this determination following three pre-planned analyses conducted by independent Data Safety Monitoring Boards (DSMBs). After reviewing the data, each board recommended halting its respective trial due to futility, indicating that it was unlikely for each study to achieve its primary endpoint.
Shifting Focus and Assessing Strategic Options
In response to the disappointing results, Chief Executive Diana Brainard stated that the company will immediately redirect its focus towards preserving its remaining capital. AlloVir aims to accomplish this by assessing its pipeline and evaluating strategic options for the future.
Overall, this decision marks a significant setback for AlloVir Inc. as it navigates the challenges of developing innovative immunotherapy solutions.