Allena Pharmaceuticals Inc. (NASDAQ: ALNA) has been cascading 1.67% in the after-market after its close on 0.28 USD on 22 March 2022, 4:55 am GMT-4. A 43.16% dip was seen during the regular trading hours on Monday.
Allena Pharmaceuticals Inc. (NASDAQ: ALNA) is a biopharmaceutical company that emerged in the latter part of 2017. Employing its novel oral enzyme therapeutics, the company aims to provide a solution for terminal metabolic disorders.
It’s two most prominent clinical indicators are URIROX (for the treatment of Enteric Hyeroxaluria, a disorder manifested as higher urine oxalate levels, and can further lead to urinary stones and chronic kidney diseases) and ALLN-346 (for treating hyperuricemia, a disease marked by high uric levels in the blood, and gout, a disease characterized by the buildup of uric acid in tissues and blood, causing painful joints.)
Release of Clinical and Corporate Updates
Earlier this year, clinical and corporate updates were released by the company on Jan 4, 2022. It talked about the potential effectiveness of ALLN-346, the novel enzyme developed for treating hyperuricemia and gout based on the Phase 2a Study 201.
Two parallel batches of patients with phases 2 and 3 of chronic kidney diseases and gout are being enrolled for ALLN-346 Phase 2a Study 202, the data for which is expected in the 1st quarter of 2022.
Adaptations are being considered for reducing the magnitude and span of URIROX trial Phase 3 for the treatment of Enteric Hyperoxaluria. Discussions of any such changes with the FDA are to be expected in the 1st quarter of 2022.
Furthermore, the company is taking Stifel as the budget and judicious advisor for its pipeline projects.
The current status of the stock can be accredited to the SEC filing issued on March 18, 2022, according to which, the URIROX-2 trial for reloxaliase in patients with hyperuricemia is being closed, owing to a lower success probability for the long term reduction in urinary stone disease in a larger trial size that was recommended by DSMB.
Subject to the closing of payment agreement on reasonable conditions with the CRO, the company plans on continuing the study on its second clinical candidate ALLN-346 in two Phase 2a programs, Study 201 and Study 202, for both of which patients are being registered.
However, in wake of the circumscribed financial standing, the filing elucidates that the conduct of the ALLN-346 study and its success if conducted is not guaranteed. ALNA is currently engaging with Stifel Investment bank to work out strategic and financial alternatives. In-court and out-of-court restructuring of liabilities is being considered.
Allena Pharmaceuticals Inc. made it clear in the recent SEC filing that in the event of inability to acquire funds on commercially viable conditions if the company does go bankrupt, the shareholders of common stock and other securities will lose their investments entirely. This statement is likely the factor that caused the investors to pull back their money, causing the stock value to drop significantly.