The failed clinical program evaluated rifaximin SSD for the delay of the first episode of hepatic encephalopathy (HE) in adults with liver cirrhosis who experienced no prior episodes.
- CEO Thomas J. Appio said that the company is “disappointed in the results.”
- The experimental therapy, however, was safe and well-tolerated, the company said.
- Rifaximin is already approved in the U.S. and marketed as Xifaxan.
Shares of Bausch Health Companies Inc. (BHC) fell 10% on Friday after the company said that its late-stage program evaluating amorphous-rifaximin solid soluble dispersion (SSD) in adults with liver cirrhosis failed to meet its primary goal.
The clinical program evaluated rifaximin SSD for the delay of the first episode of hepatic encephalopathy (HE) in adults with liver cirrhosis who experienced no prior episodes. The program consisted of two global trials involving more than 1000 patients.
Hepatic encephalopathy is a serious brain dysfunction caused by liver failure, where the liver can't remove toxins from the blood, allowing them to build up and affect the brain, causing confusion, personality changes, slurred speech, and lethargy, potentially leading to coma.
Executive Takeaway
CEO Thomas J. Appio said that the company is “disappointed in the results.” The experimental therapy, however, was safe and well-tolerated, the company said.
“We are currently reviewing the full dataset to determine potential new development opportunities," he said while adding that the company remains committed to bringing new treatments to patients across hepatology and other therapeutic areas.
Rifaximin is already approved in the U.S. and marketed as Xifaxan which is slated to lose exclusivity in 2028. The recent trials were evaluating a new variant of the compound.
How Did Stocktwits Users React?
On Stocktwits, retail sentiment around BHC stock rose from ‘bearish’ to ‘bullish’ territory over the past 24 hours, while retail chatter rose from ‘high’ to ‘extremely high’ levels.
A Stocktwits user expressed anticipation for the company’s quarterly report in February, saying the company “lost a Battle but not the war.”
Another user, however, opined that the trial failure is “a serious blow” to the company’s future prospects.
BHC stock has dropped 24% over the past 12 months.
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