Why the Bionomics Ltd (ASX:BNO) share price crashed 69% lower today

The Bionomics Ltd (ASX:BNO) share price has crashed 69% lower today after it released the results from its BNC210 PTSD trial…

| More on:
a woman

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

It certainly has been a disappointing day for shareholders of clinical stage biopharmaceutical company Bionomics Ltd (ASX: BNO).

In morning trade the Bionomics share price has returned from its trading halt and crashed a whopping 69% lower to a 52-week low of 15.5 cents.

Why have Bionomics' shares crashed lower today?

This morning Bionomics' shares returned to trade following the results of its phase 2 clinical trial of its BNC210 novel drug candidate in patients with Post Traumatic Stress Disorder (PTSD).

As you may have guessed from the share price reaction, the results fell well short of expectations.

According to the release, the trial comprehensively assessed symptoms in 193 patients with PTSD across 25 sites in the both the United States and in Australia.

While the study found that BNC210 showed excellent tolerability and safety, the trial did not meet its primary endpoint of a decrease in PTSD symptoms as measured by Clinician-Administered PTSD Scale (CAPS-5) at 12 weeks.

CEO and managing director, Dr. Deborah Rathjen, advised that:

"We are extremely disappointed that the primary endpoint in this trial was not met. As we move forward we will focus on the completion of the ongoing Phase 2 trial of BNC210 in hospitalised, elderly patients suffering from agitation which is anticipated to readout in Q1, 2019. We plan to stop all other work on BNC210 until that time. In FY18 Bionomics reduced costs by closing the US operations and reducing overall headcount. In order to maintain and enhance shareholder value, we are continuing to assess our strategic options for partnering and portfolio prioritisation whilst conserving cash."

Although the company does have a pipeline of products under development, BNC210 was seen by many, myself included, as the star of the show.

The fact that BNC210 has been ineffective in this study and that management has suspended all future work on the novel drug, doesn't fill me with confidence that it will ever make it to market.

All being well, one of the company's other candidates will be a success. But until then I would suggest investors stay clear of the company and consider large cap alternatives such as CSL Limited (ASX: CSL) and Mayne Pharma Group Ltd (ASX: MYX).

Should you invest $1,000 in Bionomics right now?

Before you buy Bionomics shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Bionomics wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on 52-Week Lows

A businesswoman exhales a deep sigh after receiving bad news, and gets on with it.
52-Week Lows

Guess which ASX 200 stock is sinking to a new 52-week low today following an update

This stock is having a poor finish to the week. But why are investors hitting the sell button?

Read more »

A woman sits with her hands covering her eyes while lifting her spectacles sitting at a computer on a desk in an office setting.
52-Week Lows

Market slump drags 26 ASX 200 shares to multi-year lows

Heavyweight ASX 200 companies like CSL and Wisetech are among them.

Read more »

a man holds his arms out and shrugs his shoulders as if indicating he doesn't know the answer to a question he's been asked.
Materials Shares

Why is this ASX 200 mining stock crashing 28% today?

Investors are rushing to the exits in large number. But why?

Read more »

Piggy bank sinking in water symbolising a record low share price.
52-Week Lows

16 ASX 200 shares that hit multi-year lows on Friday

Markets are nervous as US President Donald Trump winds back tariffs on some Canadian and Mexican imports.

Read more »

Investor looking at falling ASX share price on computer screen
Earnings Results

2 ASX All Ords shares crashing 16%+ on earnings updates

It's a red day for the market on Friday.

Read more »

Woman disappointed at share price performance with her hands on her face.
52-Week Lows

The Sayona Mining share price just hit a 4-year low

Things have gone form bad to worse for this lithium stock.

Read more »

Three people skydiving.
52-Week Lows

These ASX tech stocks just hit multi-year lows! Are they cheap?

A cheap share isn't always a bargain...

Read more »

Dollar sign in yellow with a red falling arrow in front of a graph, symbolising a falling share price.
Materials Shares

Ouch: The Pilbara Minerals share price just hit a multi-year low

It's been a tough day for lithium investors.

Read more »