Health and Healthcare
What Atara Bio Has Under the Hood After Kidney Drug Failure
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Atara Biotherapeutics Inc. (NASDAQ: ATRA) was leading the bears early in Monday’s session on some less-than-favorable results. The company announced results from its Phase 2 proof-of-concept clinical trial for PINTA 745 for the treatment of protein energy wasting in patients with end stage renal disease.
However, looking at a broader picture of the company, this is not as bad as we might think. A failed trial is always bad, but Atara has a strong cash balance behind it, not to mention a solid pipeline.
The trial did not meet its primary endpoint, defined as the percentage change from baseline in lean body mass as measured by Dual Energy X-Ray Absorptiometry at week 12 following weekly treatment with PINTA 745. Separately, PINTA 745 did not improve physical function, measures of glycemic control and markers of inflammation. There were no treatment related serious adverse events observed in the trial.
As a consequence of these results, Atara will suspend further development of PINTA 745. With the reaction seen within the stock, investors had previously heavily priced in this drug and the company looks to lose over a third of its market cap.
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