Why Is Biomea Fusion (BMEA) Stock Down 63% Today?

Core Viewpoint - Biomea Fusion has announced a clinical hold on its Phase I/II trials for BMF-219 due to safety concerns related to potential drug-induced hepatotoxicity, which has resulted in significant stock price decline [1][4]. Company Summary - Biomea Fusion's candidate BMF-219 is intended for the treatment of type 1 and type 2 diabetes, and the company will continue to gather safety and efficacy data during the clinical hold [5]. - The company asserts that preliminary results indicate BMF-219 is generally well-tolerated and can improve glycemic control and insulin production [5]. Stock Performance - Following the announcement of the clinical hold, BMEA stock has dropped 63% as of Friday morning, and it was down 23.2% year-to-date as of the previous market close [5]. - Approximately 500,000 shares of BMEA stock were traded during pre-market hours, compared to the company's daily average trading volume of about 952,000 shares [7].