Poseida Shares Tank 34.5% As Prostate Cancer Drug Trial Halted After Patient's Death

Poseida Therapeutics Inc. (NASDAQ: PSTX) stock dropped about 34.5% in the after-hours trading on Monday, after a patient died in a prostate cancer drug trial, according to a filing the company made with the United States Securities and Exchange Commission.

What Happened

The trial was carried out in July on a patient that failed prior treatments with multiple anti-cancer agents and was being treated with the drugmaker’s P-PSMA-101, according to Poseida.

The company said that the U.S. Food and Drug Administration has ordered a pause to the trial in order to investigate the death.

Why It Matters

The San Diego-based drugmaker announced the pricing of its IPO at $16 per share in early July. The gross proceeds from the offer were expected to be $224 million at the time.

The company concluded its latest funding round in June and has raised $336.5 million to date, from lead investors such as Novartis AG (NYSE: NVS), as per Crunchbase.

Price Action 

Poseida shares traded nearly 34.5% lower at $8.51 in the after-hours session after the news of the drug trial became public on Monday. The shares had closed the regular session nearly 0.8% lower at $13.