Prana Shares Plummet After Alzheimer Drug Study Disappoints

Last week, Prana Biotechnology reported disappointing results for a recent study surrounding its experimental Alzheimer's drug PBT2. According to Bloomberg, the treatment did not significantly decrease the levels of beta-amyloid plaques in the patients with mild Alzheimers. As a result, the company's stock dropped nearly 75 percent. In January, Prana shares reached a high of $13.29, Reuters reports. Earlier this week, after the results were released, the company's shares traded at $2.78 on the Nasdaq.

While the results of the study were disappointing to the company, CEO Geoffrey Kempler says that this will not deter the company from continuing its work with the drug. Kempler says, “Whilst not meeting all of our hopes, this result does not deter us from the future development of PBT2, a safe and well-tolerated drug candidate for Alzheimer’s disease.”

Researchers have long hoped to develop an effective treatment for Alzheimer's. There has not yet been a successful treatment for slowing or reversing the effects of the disease. There are medications available which treat some of the symptoms of the disease. Alzheimer's affects a significant portion of the elderly population in the US. Medical professionals believe that number is around 5 million Americans. Major pharmaceutical companies such as Roche, Eli Lilly, and Merck are also developing treatments for Alzheimer's, but their research has not yet yielded an effective drug product.

Prana's experimental drug had previously been successful in studies treating Huntington's disease. That had led some analysts to believe that the drug would also be successful in an Alzheimer's study. With the failure of the Alzheimer's study, some industry analysts believe that Prana will now have to partner with another pharmaceutical company in order to cover the costs of a larger study for the experimental drug. An analyst for MLV & Co.,Graig Suvannavejh, says, “The key question is, given the data that are available, what company is going to partner this program?” The hurdles to get this drug across the finish line are much higher now.”