Hagens Berman Investigating Rezolute, Inc. (RZLT) as Shares Tank 90% Amid Lead Asset Trial Failure

Core Viewpoint - Rezolute, Inc. experienced a dramatic decline in share price, dropping as much as 90% during intraday trading following the announcement of the failure of its Phase 3 sunRIZE trial for the drug ersodetug, which was intended to treat hypoglycemia caused by hyperinsulinism [1][4]. Company Summary - The Phase 3 trial results indicated that the drug did not meet its primary endpoint, with the reduction in hypoglycemia events not being statistically significant compared to placebo. Additionally, it failed to meet its secondary endpoint related to continuous glucose monitoring [3][4]. - Prior to the trial results, Rezolute had assured investors of the drug's potential efficacy and a significant market opportunity, claiming that the study was expected to demonstrate the drug's efficacy and safety [3][4]. Market Reaction - Following the announcement of the trial failure, the market reacted swiftly, leading to a significant drop in the company's stock price. Analysts also adjusted their ratings, with one reducing the rating from outperform to neutral and slashing the price target from $12 to $1 [4]. Investigation - The severe market reaction has prompted Hagens Berman, a national shareholders rights firm, to initiate an investigation into whether Rezolute misled investors regarding the efficacy and commercial prospects of ersodetug [2][4].