Q32 Bio's shares plummeted after the company announced disappointing results for bempikibart, an experimental medicine targeting immune function, in trials for atopic dermatitis and alopecia areata. The drug, an antibody designed to interfere with interleukin-7 (IL-7) and thymic stromal lymphopoietin (TSLP), failed to meet its primary endpoint in the Phase 2 trial for atopic dermatitis. Simultaneously, while the study in alopecia areata showed some promising signals, protocol violations undermined the data's reliability.
The atopic dermatitis trial's failure has cast doubt on bempikibart's potential in this indication. In the alopecia areata study (SIGNAL-AA), the exclusion of one site due to protocol violations left three placebo patients out of the planned analysis, complicating the interpretation of the results. Q32 Bio plans to expand the alopecia areata trial with approximately 20 additional patients to address these issues.
"The data readouts can only be characterized as messy," noted Piper Sandler analyst Christopher Raymond. While Q32 Bio intends to continue developing bempikibart for alopecia, Raymond's team has removed potential sales from their model, deeming the endeavor too risky. This shift leaves ADX-097, another experimental drug, as the company's primary value driver.
In light of these developments, Q32 Bio will postpone enrollment for a planned Phase 2 trial of ADX-097 in ANCA-associated vasculitis. Instead, the company will concentrate its resources on the Phase 2 renal basket research for ADX-097 and the expanded study for bempikibart in alopecia areata. Data on ADX-097 in the renal basket study are expected in the first half of next year.
Despite the setbacks, Q32 Bio reported that bempikibart was safe and well-tolerated in both the alopecia and eczema studies. The drug also demonstrated potent effects against IL-7 and TSLP, the two cytokines it is designed to target.
