Eleven Biotherapeutics Inc (EBIO) Shares Fall Over 70% on Failed Clinical Trials for Pink Eye Drug


Eleven Biotherapeutics Inc (NASDAQ:EBIO)’s conjunctiviis treatment has failed late-stage trials, sending shares of the stock down over 70% in morning trading. This is a major blow for a company that was hoping to see good results from this drug, EBI-005. Unfortunately though, it failed to show results in the treatment of ocular itching.

This isn’t the first failure for Eleven Biotherapeutics Inc (NASDAQ:EBIO) either, as they also saw another drug fail late-stage trials in the middle of last year. They will now turn to testing another eye treatment that they refer to as EBI-031 which is used to treat patients with diabetic macular edema.

This move to the downside comes after the stock has traded pretty steady over the past 6 months. It should be interesting to see if the freefall continues or if buyers jump in at a highly discounted price. The stock is down 70.51% or $1.65 following the news, hitting $0.69 per share. About 904,627 shares traded hands or 1644.53% up from the average. EBIO has declined 17.89% since June 12, 2015 and is downtrending. It has underperformed the S&P500 by 9.03%.

The institutional sentiment decreased to 0.64 in Q2 2015. It’s down 0.29, from 0.93 in 2015Q2. The ratio is negative, as 16 funds sold all their Eleven Biotherapeutics Inc shares they owned while 6 reduced their positions. 6 funds bought stakes while 8 increased their total positions. Institutions now own 18.60 million shares which is 31.23% more than the previous share count of 14.17 million in 2015Q2.

Flagship Ventures 2007 General Partner Llc holds 2.89% of its total portfolio in Eleven Biotherapeutics Inc, equating to 1.91 million shares. Third Rock Ventures Llc owns 4.84 million shares representing 1.09% of their total US portfolio. Moreover, Rotella Capital Management Inc. has 0.15% of their total portfolio invested in the company, equating to 190,947 shares. The California-based Redmile Group Llc has a total of 0.04% of their portfolio invested in the stock. Sabby Management Llc, a New Jersey-based fund reported 171,541 shares owned.

Eleven Biotherapeutics, Inc. is a clinical-stage biopharmaceutical company. The company has a market cap of $40.55 million. The Firm through AMP-Rx, a protein engineering platform, is engaged in the discovery and development of protein therapeutics to treat diseases of the eye. It currently has negative earnings. The Firm designs, engineers and generates a pipeline of protein therapeutic candidates that target cytokines, which are central to diseases of the eye.