Lisata Therapeutics Shares Down on LSTA1's Orphan Drug Designation

By Dean Seal

Shares of Lisata Therapeutics are trading lower after the company said regulators granted orphan drug designation to its treatment for malignant glioma, a type of brain tumor.

The stock is down 7.5% at $2.82 in premarket trading. Shares initially surged on the news.

The clinical-stage pharmaceutical company said the U.S. Food and Drug Administration has granted the designation to LSTA1, its lead product candidate.

Orphan-drug designation is a special status given to drugs that show promise for potentially treating rare, or orphan, diseases that have fewer than 200,000 cases a year in the U.S.

LSTA1 is currently the subject of ongoing or planned clinical studies conducted globally on a variety of solid tumor types, Lisata said. In the coming months, the company plans to launch a study evaluating LSTA1 in previously untreated glioblastoma multiforme. Lisata expects the first patient will be treated in the fourth quarter.

Write to Dean Seal at dean.seal@wsj.com

(END) Dow Jones Newswires

August 08, 2023 08:52 ET (12:52 GMT)

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