Shinpoong Pharm shares remained bearish Wednesday after plunging by daily limit of 30 percent drop in the previous session in a panic sell caused by the company’s announcement that its investigational Covid-19 cure failed to meet statistical significance in clinical studies.

They finished 2.69 percent lower at 65,200 won on Wednesday after 29.92 percent downfall on the previous day, losing 1.51 trillion won of its value. The company said in a regulatory filing that its malaria drug Pyramax which is repurposed as a coronavirus treatment did not meet key efficacy endpoints in Phase 2 clinical trials.

The clinical study was conducted at more than 10 university hospitals in Korea to test the drug in Covid-19 patients with mild to moderate symptoms. The primary endpoint was the virus negative conversion and there was no statistical difference between Pyramax and placebo groups.

The company said it will continue follow-up clinical trials based on some positive results in other endpoints, adding a Phase 3 IND application was submitted to the Ministry of Food and Drug Safety on Monday.

Shinpoong Pharm had been one of the hottest stocks with a whopping 1,600 percent rally driven by a Covid-19 drug development plan.

By Shin Soo-hyun and Minu Kim

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