Relmada Therapeutics Considers Strategic Alternatives Following Depression Drug Setbacks

Drug Failure:
Relmada Therapeutics' experimental drug for major depressive disorder, REL-1017, failed two late-stage trials, leading to significant stock price drops13.

Strategic Alternatives:
The company is now considering "strategic alternatives" after these failures, which could include a sale2.

High Placebo Response:
Relmada attributed the trial failures to a higher-than-expected placebo response, particularly at certain study sites where placebo recipients outperformed the drug13.

Ongoing Trials:
Despite the setbacks, Relmada is continuing with a third Phase 3 trial and planning additional studies, with results expected in 202314.

Financial Position:
Relmada had $180 million in cash at the end of the third quarter of 2022, which management believes can sustain the company for another two years1.

Market Impact:
The company's stock price plummeted significantly after the trial failures, trading below the value of its cash reserves13.

Future Plans:
Relmada is making protocol and operational changes to its ongoing and future trials, including stricter site selection and patient vetting to address the high placebo response issue4.

Sources:

1. https://www.biopharmadive.com/news/relmada-depression-drug-second-study-failure/638302/

2. https://www.biospace.com/business/wuxi-mulls-sale-of-some-us-european-operations-ft

3. https://www.biopharmadive.com/news/relmada-depression-drug-study-results/634023/

4. https://www.fiercebiotech.com/biotech/relmada-reeling-2-late-phase-flops-plots-comeback-depression-drug