Why Adverum Biotechnologies Stock Is Imploding Today

Shares of clinical-stage biotech Adverum Biotechnologies (NASDAQ: ADVM) are plunging on Thursday after the company announced a clinical update regarding one of its pipeline candidates, ADVM-022. Adverum Biotechnologies' stock was down by 60.2% as of 11:30 a.m. EDT.

ADVM-022 is an experimental gene therapy for the treatment of diabetic macular edema (DME). After the close of yesterday's trading session, Adverum Biotechnologies announced a suspected adverse reaction in a phase 2 clinical trial evaluating ADVM-022 in DME patients. Specifically, one patient treated with ADVM-022 during the trial developed hypotony, an eye condition that can lead to decreased vision.

At this point it isn't clear whether treatment with ADVM-022 was responsible for the condition. However, out of an abundance of caution, Adverum Biotechnologies has decided to unmask the study and dig into the data to determine whether other patients who participated in the trial may also be at risk of developing hypotony.

Source Fool.com