DWTX Stock Heads For Worst Day In 9 Months As Chemotherapy Pain Drug Interim Study Data Fails To Boost Investor Confidence

The company said that Halneuron demonstrated separation from placebo treated patients in terms of pain improvement but did not detail the scale of the said improvement.

• Dogwood also reported a study dropout rate of 4.4%, which the company said is far below rates typically observed with other FDA approved chronic pain medicines.
• The company expects to have top-line results from the trial available during the third quarter (Q3) of 2026. 
• Last month, Dogwood said that it has cash on hand of $10.1 million, providing operational runway only through the first quarter of 2026.

Dogwood Therapeutics, Inc. (DWTX) said on Monday that patients with chemotherapy induced neuropathic pain (CINP) treated with its painkiller Halneuron demonstrated separation from placebo treated patients in terms of pain improvement over a four-week study.  

Shares of the company fell 22% at the time of writing and is now poised to log its worst day in over nine months as the update failed to boost investor sentiment.

The separation in pain improvement was identified by an independent statistical review committee who reviewed patient treatment data from a mid-stage trial under which 97 patients have completed treatment so far. The company did not detail the scale of pain improvement observed in the analysis.

The company expects to have top-line results available during the third quarter (Q3) of 2026.

Dogwood also reported a study dropout rate of 4.4%, which the company said is far below rates typically observed with other FDA approved chronic pain medicines.

Company Sounds Optimism

According to Dogwood, current study patient enrollment trends are projected to provide statistical power of approximately 80% to 85% to detect a Halneuron treatment difference.

“Extrapolation of the current Phase 2b study trends has the potential to represent the first statistically significant trial involving CINP patients under FDA chronic pain study guidance,” said CEO Greg Duncan.

Halneuron is Dogwood’s lead product candidate and has been granted fast track designation from the FDA for the treatment of CINP. Last month, the company confirmed enrollment of 100 patients in the mid-stage study for Halneuron. The company is targeting enrolling 200 patients in the study in total.

“We are hopeful that positive outcomes in this ongoing Phase 2b trial will set the stage for a Phase 3 registration program in CINP, providing a needed therapeutic option for this patient population of cancer survivors,” Chief Medical Officer Michael Gendreau said on Monday.

Limited Operational Runway

Last month, Dogwood said that it has cash on hand of $10.1 million, providing operational runway only through the first quarter of 2026, before it can announce the results of the ongoing Halneuron trial.  

The company reported a third quarter basic and diluted net loss per share of $8.20, compared to an analyst estimate of a loss of $1.58 per share.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around DWTX fell from ‘bullish’ to ‘bearish’ territory over the past 24 hours, while message volume stayed at ‘normal’ levels.

A Stocktwits user now expects the stock to drop as low as $2.

DWTX stock has nearly doubled this year.  

For updates and corrections, email newsroom[at]stocktwits[dot]com<