Southampton: Synairgen's inhalable Covid treatment fails clinical trials leading to steep drop in stock value

By Stephen Emerson

21 February 2022

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Synairgen's inhalable therapy for patients hospitalised with COVID-19 has failed late-stage trial testing leading to an 85% drop in its stock market value.

SNG001, an inhalable formulation containing the broad-spectrum antiviral protein interferon beta, was being tested for whether it reduced patients' hospital stay and how rapidly they recovered when given the drug along with standard treatment.

The therapy did not show any meaningful change in those parameters compared with a placebo.

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Synairgen chief executive Richard Marsden said: "While we are disappointed by the overall outcome, SNG001 has been administered to hospitalised patients on top of standard of care which changed substantially between our Phase 2 and Phase 3 trials.

"This improvement in patient care may have compromised the potential of SNG001," he said, adding that the company was now analysing the full dataset from the "Sprinter" trial."

Synairgen, founded by three University of Southampton professors in 2003, stands to lose about £342 million pounds of its market value if the its market low hit on Monday is maintained.

Interferon beta is a naturally occurring protein instrumental to the body's antiviral responses, and studies have shown the COVID-causing SARS-CoV-2 virus can suppress its production in the body.

SNG001, delivered directly into the lungs using a mesh nebuliser, is also being tested in a late-stage COVID-19 trial for at-home use, sponsored by the U.S. National Institutes of Health. Results from that trial are yet to be announced.

As part of Sprinter, 623 patients were given SNG001 or a placebo on top of the standard treatment at random.

Synairgen say they will now review the study's full dataset to better understand the detailed results and implications for development for SNG001.

By Stephen Emerson

Stephen Emerson is the Managing Editor of The Business Magazine and is responsible for the publication's print publications and online properties including the newly launched Biz News websites in Hampshire and Dorset.

Stephen has been a journalist for 20 years and has worked at local, regional and national publications and led a team which made The Scotsman website one of the fastest growing news sites in the UK with over eight million monthly users.

He has a keen interest in technology, property and corporate finance and telling the stories of the people behind the successful firms in these sectors.