TRACON Pharmaceuticals Discontinues Envafolimab Development, Explores Strategic Options

1. Discontinuation of Envafolimab Development: TRACON Pharmaceuticals has stopped the development of its lead pipeline asset envafolimab after a key clinical trial failed to meet its primary endpoint.
2. Failed Clinical Trial: The Phase 2 ENVASARC trial aimed for an overall response rate of 11% but fell short of this goal, leading to the discontinuation of envafolimab development.
3. Strategic Options Under Consideration: TRACON is exploring various strategic alternatives, including mergers, acquisitions, asset sales, or other transactions to secure its future.
4. Uncertainty Over Company's Future: If a strategic deal is not finalized, TRACON's future as a going concern is uncertain.
5. Share Price Impact: The news led to a 15% decrease in TRACON's shares during morning trading.