Shares of 60 Degrees Pharmaceuticals experienced a decline in value following the company’s announcement that it had withdrawn its investigational new drug (IND) application for the use of tafenoquine in treating Covid-19.
After-hours trading saw a 20% drop in the stock, bringing it down to 92 cents, despite a 4% increase at Monday’s close. Over the past month, shares have fallen by 24% since the company began trading in July.
The Washington-based developer, specializing in treatments for infectious diseases, made the decision to withdraw its IND in response to comments received from the Food and Drug Administration (FDA) regarding its study design.
The ACLR8-LR study conducted by the company is a Phase 2B trial aimed at exploring the potential of tafenoquine, a malaria treatment, in combating Covid-19. 60 Degrees Pharmaceuticals intends to submit a new IND during the fourth quarter.
In light of these developments, the company has placed startup activities for its Phase 2B trial on hold temporarily. This decision is expected to reduce the company’s expenditure while simultaneously improving its cash position. Depending on feedback from the FDA, the company may opt to self-finance its study or seek a strategic partner.
