Please ensure Javascript is enabled for purposes of website accessibility

Proventio Bio Pauses Clinical Trial Over Fears Surrounding the Coronavirus Outbreak

By Prosper Junior Bakiny - Mar 18, 2020 at 7:36PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The decision was made to protect the safety of those involved.

The COVID-19 pandemic is having a profound impact on the lives and day to day activities of millions of people in the United States. Many states have decided to take drastic measures to mitigate the spread of the potentially deadly disease, such as closing public schools, bars, and gyms, and banning large gatherings. But it seems the ongoing pandemic is also affecting the ability of biotech companies to conduct clinical trials safely.

Proventio Bio (PRVB 4.94%) -- a clinical-stage biotech company headquartered in New Jersey that focuses on the development of treatment for autoimmune diseases -- recently announced that it was pausing a phase 3 clinical trial. The trial in question investigated the efficacy of PRV-031 as a treatment for newly diagnosed type 1 diabetes.

Although no one involved in the study was diagnosed with COVID-19, Proventio Bio made this decision to protect all those involved in the study as the disease continues to spread. The company is unsure how long this hiatus will last. Fortunately, Proventio Bio also announced that its other clinical trials have remained unaffected by the COVID-19 outbreak. 

Clipboard with sheet of paper and the word "Coronavirus" written on it.

Image source: Getty Images.

Other companies could do the same

As the spread of COVID-19 continues throughout the country -- with more than 7,700 reported cases and at least 118 deaths -- more drugmakers could decide to halt ongoing clinical trials to protect the safety of those involved. The U.S. Food and Drug Administration (FDA) recently issued guidance to "industry, investigators and institutional review boards conducting clinical trials" in the age of COVID-19. 

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Provention Bio, Inc. Stock Quote
Provention Bio, Inc.
$4.25 (4.94%) $0.20

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 06/27/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.