UPDATED: Galera shares take a nosedive in the wake of unexpected PhIII flop
Galera was sure it had a winner when it launched its pivotal severe oral mucositis (SOM) trial back in 2018 — and so were investors. Fresh off a $150 million raise, the company plunged headfirst into Phase III, even making commercial plans.
But those plans went splat Tuesday, as an unexpected failure sent shares spiraling into penny stock territory.
Galera’s lead candidate avasopasem (also known as GC4419) failed to significantly reduce the incidence of SOM in patients with locally advanced head and neck cancer compared to placebo, the company announced. While those in the treatment group saw a slight reduction, 54% compared to 64% in the placebo group, the endpoint failed to achieve statistical significance (p=0.113).
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