Why Veru Stock Got Dented Today

Veru's (NASDAQ: VERU) stock dipped by 5.5% on Friday as of 10:49 a.m. ET after the short-selling group Culper Research published a new report criticizing the company's latest clinical trial results. Culper claims Veru's phase 3 trial data regarding its drug sabizabulin, which was published July 6 in the New England Journal of Medicine, is seriously flawed because the patients in the trial's placebo group were significantly more ill and at a higher risk of death than the patients in the treatment group.

Culper also claims some of the investigators working on the trial are associated with other recent biotech failures to develop therapies for coronavirus infection.

Sabizabulin is an antiviral that's intended to treat severe COVID-19, which typically results in patients experiencing insufficient oxygenation of their blood. The short-seller pointed to the blood oxygen saturation levels of the patients in the study's placebo group, stating that some of the patients there had lower saturation than the treatment group before it received treatment.

Source Fool.com