search icon
      blog search icon

      Biomea Fusion (BMEA) Plunges 60% Following FDA Clinical Hold

      By Wasim Omar

      Published on

      June 7, 2024

      7:03 AM UTC

      Biomea Fusion (BMEA) Plunges 60% Following FDA Clinical Hold

      Biomea Fusion, Inc. (NASDAQ: BMEA) endured a tumultuous day on Thursday, with its shares plummeting nearly 5%. However, the real blow came after hours, as the stock nosedived an additional 60%, trading as low as $4.65 by late Thursday evening, a stark contrast to its morning opening at $11.80.

      Drastic FDA Decision for Biomea

      This drastic decline followed the U.S. Food and Drug Administration (FDA) placing a full clinical hold on Biomea’s Phase I/II trials for BMF-219, its investigational covalent menin inhibitor targeting type 2 and type 1 diabetes. Thomas Butler, CEO and Chairman of Biomea Fusion, emphasized patient safety as the utmost priority, expressing cooperation with the FDA to address concerns swiftly and resume studies.

      The FDA’s decision stemmed from observed instances of potential drug-induced liver injury during the Dose Escalation Phase of COVALENT-111. While adverse events were largely mild to moderate, the regulatory body cited concerns regarding hepatotoxicity, prompting the clinical hold.

      Background & Market Reaction

      Biomea Fusion, a clinical stage biopharmaceutical company specializing in oral covalent small molecules for metabolic diseases and genetically defined cancers, is now grappling with the fallout. This development underscores the inherent volatility and risks inherent in the biotech industry, where regulatory hurdles can swiftly impact stock performance.

      Investors are left questioning the viability of BMEA’s drug pipeline in the wake of this setback. The company’s commitment to advancing BMF-219, backed by promising safety and efficacy data, remains resolute. Nonetheless, the abrupt stock downturn serves as a stark reminder of the rollercoaster nature of biotech investments—high rewards tempered by considerable risks.

      Biomea Fusion’s proprietary FUSION™ System aims to revolutionize disease treatment, leveraging covalent-binding small molecules for enhanced clinical outcomes. Despite this setback, the company’s dedication to pioneering transformative therapies persists.


      In conclusion, BMEA’s stock plunge reflects the challenges inherent in biopharmaceutical development. While setbacks like FDA clinical holds are part of the industry landscape, Biomea remains steadfast in its mission to drive innovation and improve patient outcomes.

      More From Stocks telegraph