What happened
Shares of Cerevel Therapeutics(NASDAQ: CERE) were down more than 14% as of 10:30 a.m. ET on Wednesday after the healthcare company reported second-quarter earnings. The stock is down more than 17% so far this year.
So what
Cerevel focuses on therapies to treat neuroscience diseases, particularly Parkinson's disease, epilepsy, and schizophrenia. The company reported an earnings-per-share (EPS) loss of $0.63 in the second quarter, compared to an EPS loss of $0.61 in the same period a year ago. The clinical-stage biotech company did not report any revenue, but that was expected. As of the end of the quarter, on June 30, Cerevel reported it had $825.1 million in cash, enough to fund operations into 2025, it said.
The finances weren't the biggest culprit for Wednesday's drop, however. The company said that its two phase 2 trials for Emraclidine to treat schizophrenia are being delayed, thanks to slower-than-expected enrollment in the U.S. and delays at some U.S. clinical sites. The company said it expects top-line data for both trials in the second half of next year. The problem is the company has been plagued with trial delays, one likely reason Ron Renaud was named as CEO in June, replacing Tony Coles.
Now what
The company's shares are likely to bounce back because it has a lot more in the works other than Emraclidine. The company has several other late-stage therapies in its pipeline, including its lead therapy, Tavapadon, which is in three phase 3 trials to treat early- and late-stage Parkinson's disease. The company also has Darigabat in a phase 2 trial to treat epilepsy and a phase 1 trial to treat panic disorder, with data in the epilepsy trial expected in mid-2024. It also has CVL-871, which is in a phase 2 trial to treat dementia-related apathy and CVL-354, which is in phase 1 trials to treat major depressive disorder and substance-use disorder.
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Jim Halley has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Cerevel Therapeutics. The Motley Fool has a disclosure policy.
