Cortexyme stock plunges 34% after FDA places clinical hold on Alzheimer's drug application
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Cortexyme (NASDAQ:CRTX)
drops 33.9% premarket after receiving a letter from the FDA stating that the Agency is placing a full clinical hold on company's atuzaginstatâs (COR388) Investigational New Drug application (IND).
The company plans to provide additional updates pending continued engagement with FDA.

Cortexyme is immediately implementing a cost reduction program to rationalize operations and to allow continued support for planned clinical milestones, providing an expected cash runway through 2024.
The company intends to prioritize development of its next generation gingipain inhibitor, COR588, in Alzheimerâs disease.
COR588 is currently completing a Phase 1 SAD/MAD study and results are expected in Q2 2022.
In addition, the company plans to explore strategic alternatives for its coronavirus program and non-Alzheimerâs indications for COR388.
Other pharmas and biotechs working on Alzheimer's treatments have gained following FDA clinical hold on CRTX's COR388. Annovis Bio (ANVS
+4.1%), Anavex Life Sciences (AVXL
+2.6%), Cassava Sciences (SAVA
+4.7%), and Biogen (BIIB
+0.3%).