Marinus Pharma has come under pressure from the US government and the Securities and Exchange Commission.
Its shares have plummeted on a series of controversial issues, including its involvement in a controversial clinical trial involving the development of a new gene therapy for human breast cancer.
Analysts and traders have warned the stock could be hit with further legal and regulatory scrutiny.
Marinus has said it will not be affected by the fallout.
The company’s stock, which fell by nearly 6 per cent on Thursday after US regulators said it had received permission to begin the trial, was down more than 15 per cent in the last three months.
Analysts and analysts say the company has been struggling with the impact of its trial, which is one of the biggest of its kind in the US.
The trial is part of a multi-billion dollar market that is dominated by a few drugs that have high approval hurdles.
It’s the kind of blockbuster trial that could easily become a distraction for Marinus, which has a market cap of $16.5 billion and a market capitalisation of $9.5bn.AAP Reports:The trial involves a gene therapy that is currently being tested in humans.
The gene therapy is known as MTHFR.
The gene therapy involves the insertion of a gene from a patient’s mother into a donor’s egg.
The new gene was developed by Marinus as part of its clinical trials for human and animal diseases.
The US Food and Drug Administration (FDA) has approved the gene therapy, called MTHFD, as an investigational new drug (IND) but not for humans.
It has to go through a clinical trial before approval.MTHFR gene therapy was developed as a way to help treat patients with breast and ovarian cancer, a type of cancer that is usually incurable.
It’s currently undergoing a clinical trials phase in China.
Marusys chief executive John Schuster has repeatedly said that it’s unlikely that the gene treatment would be approved in the United States, but analysts have said that this could change.US President Donald Trump said in a tweet on Thursday that he was “very disappointed” with Marusics response to the government’s regulatory approval.
Trump has repeatedly criticized Marusic and has repeatedly accused it of making bad deals, but his criticism is unlikely to deter investors from continuing to buy Marusica stock.
The company has continued to grow its market cap despite its troubled past.
Mariusis shares are down about 3 per cent since the start of the year.AP Reports