Most cannabis stocks are down this morning on the TSXV. The majority of these stocks are only seeing slight losses, but one, in particular, is losing big. Tetra Bio-Pharma Inc. (TSXV:TBP) is the cannabis stock that is taking the biggest hit today. The biopharmaceutical company made an announcement that investors aren't pleased with and now TBP stock is down over -20%.
TBP Stock Down -20% After Phase Three Halt
This morning, Tetra announced it has temporarily suspended its phase 3 clinical program in its PPP001 investigational drug. The reason Tetra suspended the trial comes down to the impurities found within its drug. Tetra's inhalation products have not been affected by the halt in this trial.
The press release explains:
"In late spring 2018, Tetra initiated a study to monitor the microbial flora in its investigational product in order to validate the storage and drying process used in the fabrication of its investigational product. On December 20th the results of this ongoing study revealed the presence of the 3 mycotoxins in the lot of the investigational drug used for the clinical trials."
Due to this finding, TBP stock has taken a hit. While Tetra reported the findings within 24-hours of its discovery, the company, by law, has to shut down the study until the toxins are removed. Due to the company being a biopharmaceutical company, the cannabis raw materials must be investigated and meet the requirements under the Cannabis Act and Good Production Practices.
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Guy Chamberland Ph.D., Tetra Bio-Pharma's CEO, said:
“This unexpected development will result in a 6-month delay in the submission of the Canadian New Drug Submission or Drug Identification Number (DIN) application for PPP001. Tetra strongly believes that this delay will lead to a safer and higher quality drug for patients with advanced cancer. Through our research and development efforts, Tetra’s intention is to create higher quality for all cannabis-derived medicinal products."
Tetra will propose a robust quality program to Health Canada within the next six months. After approval, it will begin the trial once more.
TBP Stock Movement
According to Yahoo Finance, TBP is currently trading at $0.82 a share, down -$0.24 (-22.64%).
Featured Image: Tetra
