Zosano Pharma Corp. (ZSAN), a clinical-stage company related to the biopharmaceutical industry, has plunged 28.67% in aftermarket trading session. As a result, it is trading at $0.154 at the time of the writing. During Friday’s mid-day session, the stock declined by 3.49% and closed the $0.215. The stock went into the plunge after the company’s filing with SEC on 18th February. The filing stated the receipt of a response letter from the US FDA.
ZSAN Received Response from FDA
On Friday, ZSAN announced the receipt of the letter of response from the US Food and Drug Administration (FDA). The letter was regarding the resubmission of the New Drug Application (NDA) for M207 from the company. FDA response said that it did not consider resubmitted M207 NDA to be completely responding to the deficiencies found out by FDA in October 2021. Furthermore, FDA said that it would not initiate the review of the NDA till it would receive the renewed complete response.
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Pricing of Public Offering
On the 8th of February, ZSAN announced the pricing of its underwritten public offering (which it announced previously) of 51,250,000 units. Each of the units comprised of a single share of common stock as well as one warrant for the purchase of one share of common stock. The offering price was placed at $0.30 per share. The company said that the warrants have an exercise price of $0.30 per share. Also, they would be exercisable on an immediate basis and would get expired five years from the issuance date.
Publication of Data
In the early days of January, ZSAN reported the publication of phase-1 clinical trial data in an article in the Journal of Vaccines and Immunology. The clinical trial data showed that the low concentration of trivalent influenza vaccine which was transmitted through the transdermal microneedle system resulted in the production of antibody levels that came up to the EMEA’s guidelines for the efficiency of influenza vaccine. Also, the antibody levels were within a well-tolerated range.
Future Outlook for ZSAN
Analysts believe that ZSAN stock currently holds several negative signals and is on a steep fall. Hence, analysts expect it to decline in the next few weeks. So, potential investors should keep a close eye on the performance of the stock.