The Cynata Therapeutics Ltd (ASX: CYP) share price has come under pressure on Thursday.
Its shares were down as much as 15% at one stage before rebounding slightly.
Unfortunately, this sizeable decline has wiped out the majority of Cynata's gains in 2019.
Why did the Cynata share price crash lower today?
Investors have been hitting the sell button today after the clinical-stage biotechnology company provided an update on its takeover discussions with Sumitomo Dainippon Pharma Co.
In June Sumitomo made an indicative, non-binding and conditional proposal of $2.00 per share in cash for Cynata.
However, according to today's update, Cynata has been unable to reach an agreement on terms to its satisfaction. As a result, the two parties have now withdrawn from takeover discussions.
Considering Cynata's shares were trading at $1.48 as of yesterday's close, some 26% lower than the proposed takeover offer, it appears as though many investors weren't convinced a deal would be made. So this news may not have come as a big surprise.
What now?
Management advised that it will continue to focus on progressing its Phase 2 clinical trial programs in osteoarthritis and critical limb ischemia, and in graft-versus-host disease with partner Fujifilm.
Furthermore, it is actively engaged in commercial discussions with parties that are interested in partnering with the company to develop its unique Cymerus therapeutic mesenchymal stem cell (MSC) technology.
Elsewhere on the market today, the WiseTech Global Ltd (ASX: WTC) share price has also fallen heavily. Its shares were down over 10% before being placed in a trading halt following a short seller attack.
And the Zip Co Ltd (ASX: Z1P) share price has also fallen 10% due to profit taking and a bearish note out of UBS. It has concerns over how credit-worthy buy now pay later users are. The broker also took aim at Afterpay Touch Group Ltd (ASX: APT) as well, suggesting its shares could drop as low as $17.25.
