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.
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.
