Please ensure Javascript is enabled for purposes of website accessibility

Why VistaGen Therapeutics Stock Jumped Today

By Keith Speights - Jun 30, 2021 at 4:14PM

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

Investors liked the drugmaker's corporate update.

What happened

Shares of VistaGen Therapeutics (VTGN -5.22%) were jumping 15.5% higher as of 3:21 p.m. EDT on Wednesday. The big gain came after the company announced results for its fiscal year 2021 and provided a corporate update after the market close on Tuesday.

So what

It wasn't VistaGen's financial results that propelled the biotech stock today. The company doesn't have any products on the market yet. It recorded $1.1 million in revenue, part of its licensing deal with EverInsight Therapeutics, which merged with AffaMed Therapeutics last year. VistaGen posted a net loss for the fiscal year ending March 31, 2021, totaling $17.9 million.

Scientist looking through a microscope.

Image source: Getty Images.

Investors did respond enthusiastically to the company's pipeline update, though. VistaGen recently began its late-stage Palisade-1 clinical study evaluating experimental drug PH94B in treating social anxiety disorder. CEO Shawn Singh said that the company expects to report top-line data from this study in mid-2022.

Singh also stated that VistaGen plans to kick off a second late-stage study called Palisade-2 later this year. He said that this study will have a design similar to the Palisade-1 trial. The company anticipates initiating several other phase 2a studies of PH94B during the current fiscal year targeting other anxiety disorders as well.

Now what

Investors will want to watch VistaGen's progress in its Palisade phase 3 trials. If PH94B fares well in these studies, the company could be in a position to file for U.S. regulatory approval of the drug in 2023.

Keith Speights has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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

VistaGen Therapeutics, Inc. Stock Quote
VistaGen Therapeutics, Inc.
$0.16 (-5.22%) $0.01

*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 08/09/2022.

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.