Pfizer backed out of a deal to co-develop an Ionis Pharmaceuticals heart-disease drug on Monday. But IONS stock reversed earlier losses and gained a fraction at the close.
The companies partnered in late 2019 to work together on vupanorsen, an experimental medicine for patients with high triglycerides. Triglycerides are a type of fat in the blood. Elevated levels can increase the risk of heart complications.
Although the drug lowered triglycerides and other related markers, it also led to increases in liver fat and enzymes, Pfizer said in a news release.
On the stock market today, IONS stock initially toppled as much as 10.8%, but pared those losses and closed up a fraction at 31.80. Shares of Pfizer tumbled 3% to close at 52.69.
IONS Stock Misses Key Line
Vupanorsen works by blocking angiopoietin-like 3, a factor responsible for releasing fats into the blood. In Phase 2 testing, Ionis' drug lowered triglycerides and "bad" cholesterol. It also reduced the level of angiopoietin-like 3 in the blood.
But Pfizer said the magnitude of triglycerides and cholesterol reductions weren't big enough to support continued development of vupanorsen. The decision led IONS stock to drop below its 50-day moving average, according to MarketSmith.com.
Further, Pfizer noted the drug led to increases in liver fat. Higher doses were tied to elevations in liver enzymes.
Shares of Ionis have been under pressure recently. IONS stock has a low Relative Strength Rating of 28, according to IBD Digital. This puts shares in the bottom 28% of all stocks in terms of 12-month performance.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
