Shares of Frequency Therapeutics (NASDAQ:FREQ) have absolutely cratered over 80% in today’s trading session at the time of writing. This can be attributed to a failed hearing loss treatment where patients didn’t see an improvement in speech perception, which was the primary goal. To make matters worse, none of the secondary goals were achieved either.
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As a result of the trial failure, the company will no longer continue developing the treatment and will also reduce its employee count by 55%. This is expected to extend the firm’s cash runway until 2025, which should allow it to complete its first trial for its new focus area – Remyelination for multiple sclerosis.
The last five trading days have been brutal for investors, as FREQ stock has suddenly become a penny stock after trading above $4 per share as recently as Friday.
