A failed test is sometimes all it takes to send a stock diving, especially with healthcare stocks. For CVRx (NASDAQ:CVRX), a failed test meant a 60% loss in share prices on Tuesday.
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CVRx’s test of a heart failure therapy device known as Barostim went pretty poorly, by all accounts. The good news is that it did yield some “clinically meaningful” analyses that offered a “favorable safety profile” on the implantable device Barostim uses. However, the trials around Barostim also failed to produce results that had “statistical significance on the primary endpoint.” In fact, the 323 patients that had heart failure with “reduced ejection fraction” didn’t actually achieve the endpoint at all.
Following the results, CVRx CEO Nadim Yared noted that CVRx would “…submit the totality of evidence of BeAT-HF to FDA seeking an expansion of Barostim labeling.” After all, it does have the “favorable safety profile” on its side, and it did produce those “clinically meaningful” analyses. It offered some benefits on “all-cause survival” and even offered some positive outcomes in terms of cardiovascular issues and overall quality of life.
Overall, analyst consensus declares CVRx a Strong Buy. Plus, with an average price target of $19.80, it comes with 188.63% upside potential. However, it’s worth noting that these figures are likely to change following the failed trial.
