Core Viewpoint - Rezolute, Inc. experienced a dramatic decline in share price, dropping as much as 90% after announcing the failure of its Phase 3 sunRIZE trial for the drug ersodetug, which was intended to treat hypoglycemia caused by hyperinsulinism [1][4]. Company Performance - 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 [3]. - The secondary endpoint, which assessed the change in average daily percent time in hypoglycemia via continuous glucose monitoring, was also not met [3]. Market Reaction - Following the announcement, the market reacted swiftly, leading to a significant drop in Rezolute's share price [4]. - Analysts responded by downgrading Rezolute's rating from outperform to neutral and slashing the price target from $12 to $1 [4]. Investor Concerns - Hagens Berman, a national shareholders rights firm, has initiated an investigation into whether Rezolute misled investors regarding the efficacy and commercial prospects of ersodetug [2][4]. - The firm is encouraging investors who suffered losses to come forward and assist in the investigation [2].

Core Viewpoint - Rezolute, Inc. experienced a dramatic decline in share price, dropping as much as 90% after announcing the failure of its Phase 3 sunRIZE trial for the drug ersodetug, which was intended to treat hypoglycemia caused by hyperinsulinism [1][4] Company Performance - The Phase 3 trial results indicated that the drug did not meet its primary endpoint, and the reduction in hypoglycemia events was not statistically significant compared to placebo [3] - The secondary endpoint, which assessed the change in average daily percent time in hypoglycemia, also failed to show significant results compared to placebo [3] Market Reaction - Following the announcement, Rezolute's share price plummeted, prompting analysts to downgrade the stock rating from outperform to neutral and reduce the price target from $12 to $1 [4] - The market's swift reaction reflects investor disappointment and concerns regarding the company's previous assurances about the drug's efficacy and market potential [2][4] Legal Investigation - Hagens Berman, a national shareholders rights firm, has initiated an investigation into whether Rezolute misled investors about the efficacy and commercial prospects of ersodetug [2][4] - The firm is encouraging investors who suffered losses to come forward and is seeking information from individuals who may assist in the investigation [2][5]

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].