Australia’s CSL top loser on ASX 200 following failure of heart attack drug trial

CSL in focus: Australia's CSL Ltd experienced major losses in the benchmark index on Monday as its biotechnology firm disclosed that its drug, CSL112, failed to reduce the risk of cardiovascular events in the 90-day high-risk period post-heart attack, as indicated by the Phase III trial results.

The study did not meet its primary efficacy endpoint, leading to the absence of plans for a near-term regulatory filing, according to the company. However, CSL stressed that there were no major safety or tolerability issues associated with the drug.

Shares of CSL plummeted by 5 per cent to A$289.72 per share, marking their most notable decline in four months. 

The stock had earlier dropped by 6.2 per cent during the session, reaching its lowest level since January 19.

Henry Jennings, a senior analyst and portfolio manager at Marcustoday Financial Newsletter, remarked that while CSL's failure in the trial is uncommon, the negative impact on share price is expected to be short-lived but may witness further decline.

CSL initiated the study on CSL112 over a decade ago through the AEGIS-II trial, involving more than 18,200 heart attack patients from 49 countries. 

This trial was the largest Phase III clinical trial undertaken by the company, aiming to assess the drug's efficacy and safety in reducing recurrent cardiovascular events post-heart attack.

Analysts at Jarden suggested that the market's response is primarily due to the perceived loss of potential benefits from this drug.

CSL is scheduled to report its half-yearly earnings on Tuesday.
(With Reuters Inputs)