The Situation
Verve Therapeutics Inc (NASDAQ: VERV) shares – a clinical-stage gene-editing biopharmaceutical company focusing on therapies for cardiovascular conditions – plunged on Monday after the FDA asked for additional data for its gene-editing approach. As of 12:00 PM ET, Verve shares dropped 14.08%.
The Explanation
Verve Therapeutics Inc went public on June 17, 2021, reaching its all-time high on Sept 10, 2021, at $73.99. So far, shares have fallen 47.62% year to date, starting at $39.36 and down to $20.58 as of press time.
The Food and Drug Administration shared safety concerns about the company's gene-editing approach to high cholesterol. Verve is being asked for more data from ongoing human studies in the UK and New Zealand.
The company's approach to high cholesterol is to simply turn off the PCSK9 gene responsible for regulating proteins involved in blood cholesterol levels. These proteins lead to high LDL cholesterol in some people.
See the $VERV chart performance here.
The Effect
Verve stock dropped as news of the FDA's sentiment towards the company's gene-editing approach. The investors' reaction happened as the Food and Drug Administration asked for additional requirements.
Since investors can't know for sure whether the company will finally pass FDA accreditation, it is more important to focus on Verve's potential to pass as Alnylam Pharmaceuticals, its competitor, already has a drug that silences the exact same PCSK9 gene.
See full $VERV flow at: https://unusualwhales.com/stock/VERV/flow-overview
